Arkansas paycheck calculator
Arkansas has cut its income tax several times in a row, most recently in a May 2026 special session that lowered the top rate for the whole 2026 tax year. The Department of Finance and Administration reissued its withholding formula and tables at the end of May 2026, so paychecks since then reflect the new rate. Arkansas uses a small standard deduction plus a flat tax credit for each exemption you claim.
Take-home per paycheck
$2,281
- Take-home per year
- $59,305
- Total taxes per year
- $15,696
- Effective tax rate
- 20.9%
- Marginal tax rate
- 33.3%
- Assumes 1 exemption on Form AR4EC (yourself, plus dependents) and the regular (not low-income) tax tables.
Take-home per paycheck: $2,281 every 2 weeks
| Line | Every 2 weeks | Per year |
|---|---|---|
| Gross pay | $2,885 | $75,000 |
| Federal income tax | −$295 | −$7,670 |
| Social Security | −$179 | −$4,650 |
| Medicare | −$42 | −$1,088 |
| State income tax | −$88 | −$2,288 |
| Take-home pay | $2,281 | $59,305 |
- Take-home pay$59,30579%
- Federal income tax$7,67010%
- Social Security & Medicare$5,7388%
- State & local taxes$2,2883%
How Arkansas taxes your paycheck
- Up to 3.7%
- Graduated rates from 0% to 3.7% for 2026 after the May 2026 special-session cut; higher earners pay 3.7% on income above $4,700.
- None
- Arkansas has no state payroll tax withheld from employees.
- None
- Arkansas cities and counties do not levy income taxes on wages, so only state income tax is withheld. Residents of Texarkana, Arkansas have a special state exemption (Form AR4EC-TX). There is no employee-paid state disability or paid family leave tax.
- 3.7%
- Arkansas employers withhold a flat 3.7% from bonuses and commissions.
Arkansas income tax rates for 2026
These are the return rates. Your employer withholds using Arkansas's withholding method (Formula method (Arkansas DFA, Tax Year 2026)), which the calculator above follows.
| Taxable income | Rate |
|---|---|
| $0 – $5,599 | 0% |
| $5,599 – $11,199 | 2% |
| $11,199 – $15,999 | 3% |
| $15,999 – $26,399 | 3.4% |
| Over $26,399 | 3.7% |
| Taxable income | Rate |
|---|---|
| $0 – $4,700 | 2% |
| Over $4,700 | 3.7% |
| Item | Amount |
|---|---|
| Standard deduction — Single (Amount used in the 2026 withholding formula; 2025 return amounts were $2,470 per filer and $4,940 married filing jointly.) | $2,470 |
| Personal tax credit (per exemption) (credit) | $29 |
$43,630 in Arkansas
$43,630 is the median annual wage in Arkansas (May 2025, BLS OEWS). A single filer paid every two weeks with no other income or deductions takes home $36,111 a year, or $1,389 per paycheck.
| Line | Every 2 weeks | Per year |
|---|---|---|
| Gross pay | $1,678 | $43,630 |
| Federal income tax | -$118 | -$3,056 |
| Social Security | -$104 | -$2,705 |
| Medicare | -$24 | -$633 |
| State income tax | -$43 | -$1,126 |
| Take-home pay | $1,389 | $36,111 |
How Arkansas withholding is calculated
Payroll systems use DFA's formula method. Your pay is annualized, the standard deduction is subtracted, and the result is rounded to the middle of its hundred-dollar range for incomes under about $100,000. The tax comes from a bracket table that applies a percentage and then subtracts a fixed adjustment, and is rounded to the dollar.
Exemptions work as tax credits, not deductions. Each exemption on Form AR4EC subtracts a fixed amount from the annual tax before it is spread across your paychecks.
On the AR4EC you claim one exemption for yourself, two if you claim yourself and your spouse, or two as head of household, plus one per dependent. If you do not file one, your employer must withhold with no exemptions.
Low-income tables and high earners
Workers with very low total income can check the low-income box on the AR4EC so the employer uses DFA's separate low-income withholding tables, which follow Arkansas's low-income tax rates. The AR4EC lists the income ranges that qualify by filing status and number of dependents.
Higher earners use a different rate table on the return: a low rate on the first slice of income and the top rate on the rest, with a bracket adjustment that phases out just above the cutoff. The withholding formula builds this in through its adjustment amounts.
Pre-tax deductions and bonuses
Arkansas has adopted the federal exclusions for cafeteria plans (Section 125), 401(k), 403(b) and 457 plans, so those contributions are not Arkansas wages and are not subject to withholding.
Bonuses, commissions and overtime paid with regular wages are withheld at a flat rate equal to the top rate. DFA warns employers that this can over-withhold for some employees, with the excess refunded on the state return.
No local income tax
Little Rock, Fayetteville, Fort Smith and other Arkansas cities and counties do not tax wages. Texarkana, Arkansas residents can claim a special state income tax exemption with Form AR4EC-TX. There is no employee-paid disability or paid family leave tax.
What changed recently
- 2026: Act 2 of the 2026 First Extraordinary Session, approved May 6, 2026, cut the top individual rate from 3.9% to 3.7% for tax years beginning January 1, 2026, and DFA posted a new 2026 withholding formula and tables on May 29, 2026. Source
- 2026: The same act cuts the top corporate income tax rate to 4.1% starting with tax years beginning January 1, 2027. Source
Questions people ask
What is the Arkansas income tax rate for 2026?
The top rate is 3.7% for 2026 after the May 2026 special session, down from 3.9%. Lower slices of income are taxed at 0%, 2%, 3% and 3.4% for taxpayers with net income up to $94,700.
Why did my Arkansas withholding drop in mid-2026?
Act 2 lowered the 2026 top rate in May 2026, and DFA released new withholding tables and a new formula on May 29, 2026. Because the cut applies to the whole year, extra tax withheld earlier in 2026 comes back when you file.
How are bonuses taxed in Arkansas?
Employers withhold a flat 3.7% of state income tax from bonuses and commissions. DFA notes this can be more than you owe; any overpayment is refunded on your Arkansas return.
How many exemptions should I claim on the Arkansas AR4EC?
One for yourself, two if you claim yourself and your spouse, or two if you are head of household, plus one for each child or dependent. Each exemption is a $29 tax credit in the withholding formula.
Do Arkansas cities have a local income tax?
No. No Arkansas city or county taxes wages.
Does my 401(k) reduce Arkansas withholding?
Yes. Arkansas excludes 401(k), 403(b) and 457 deferrals and Section 125 cafeteria-plan amounts from wages subject to state withholding.
Sources
- State of Arkansas Withholding Tax — Formula Method, Tax Year 2026 · retrieved 2026-10-16
- Withholding Tax Instructions for Employers (posted 05/29/2026) · retrieved 2026-10-16
- AR4EC Employee's Withholding Exemption Certificate (2026) · retrieved 2026-10-16
- Act 2 of the 2026 First Extraordinary Session (SB 1): income tax rate reduction · retrieved 2026-10-16
- 2025 AR1000F and AR1000NR Instructions · retrieved 2026-10-16
- Withholding Tax Forms & Instructions · retrieved 2026-10-16
- Publication 15-T (2026), Federal Income Tax Withholding Methods · retrieved 2026-10-16
- Publication 15 (2026), (Circular E), Employer's Tax Guide · retrieved 2026-10-16
- Rev. Proc. 2025-32: 2026 inflation-adjusted tax items · retrieved 2026-10-16
- Form W-4 (2026), Employee's Withholding Certificate · retrieved 2026-10-16
- Publication 505 (2026), Tax Withholding and Estimated Tax · retrieved 2026-10-16
- Form 1040-ES (2026), Estimated Tax for Individuals · retrieved 2026-10-16
- Schedule 1-A (Form 1040) 2026, Additional Deductions (early-release draft) · retrieved 2026-10-16
- Schedule 8812 (Form 1040) 2026, Credits for Qualifying Children and Other Dependents (early-release draft) · retrieved 2026-10-16
- Working Families Tax Cuts: Individuals and workers (tips, overtime, seniors, car loan interest) · retrieved 2026-10-16
- Working Families Tax Cuts provisions (charitable deduction for non-itemizers, Section 70424) · retrieved 2026-10-16
- Child Tax Credit · retrieved 2026-10-16
- IR-2025-111: 401(k) limit increases to $24,500 for 2026 · retrieved 2026-10-16
- Rev. Proc. 2025-19: 2026 HSA limits · retrieved 2026-10-16
- BLS Occupational Employment and Wage Statistics (OEWS), May 2025, median annual wage by state · retrieved 2026-10-16