How Arkansas Income Tax Works in 2026
Arkansas uses a graduated income tax whose top rate is now 3.7%, down from 7% when the cutting began in 2013. The May 2026 special session made the latest cut retroactive to January 1, 2026, continuing one of the longest tax-cutting streaks of any state. About 1.1 million taxpayers saw their bills fall under the new law.
Arkansas has a quirk worth knowing: it runs two different rate schedules depending on your total taxable income. Filers at or below about $94,700 use a five-bracket schedule, while higher earners use a separate two-rate schedule. The state standard deduction is $2,470 for single filers, and Arkansas also hands out small personal tax credits that trim the final bill.
What Comes Out of Your Arkansas Paycheck
An Arkansas stub shows federal income tax, Social Security at 6.2%, Medicare at 1.45%, and Arkansas state tax. There is no state disability insurance or paid leave payroll tax, and Arkansas cities cannot add a local income tax, so the deduction list stays simple.
Because Arkansas's top rate now sits at 3.7%, the state line on a $75,000 salary is smaller than in most Southern states with income taxes. Pre-tax 401(k) and HSA contributions still help, since they reduce the federal bill first and the state bill on the income that remains.
Worked Example: A $75,000 Salary in Little Rock
Take a single filer in Little Rock earning $75,000 a year, paid biweekly. Federal tax takes about $7,670, FICA takes $5,737.50, and Arkansas state tax lands near $2,287 after the state standard deduction and credits. Here is the full-year math.
| Gross Pay | $75,000.00 |
| Federal Income Tax | ~$7,670.00 |
| Social Security (6.2%) | $4,650.00 |
| Medicare (1.45%) | $1,087.50 |
| Arkansas State Tax | ~$2,287.00 |
| Net Annual Pay | ~$59,305.50 |
That is about $2,281 per biweekly paycheck against gross pay of $2,884.62, an effective total rate near 20.9%. Arkansas now undercuts every neighboring state with an income tax on take-home pay at this salary, which is exactly the competitive edge the legislature has been chasing since 2013.
Arkansas Paycheck Details Worth Knowing
A decade of rate cuts
Arkansas has cut its top individual rate in nearly every legislative session since 2015, falling from 7% to 3.7%. Governor Sanders has signaled the cuts will continue as surpluses allow, so Arkansas paychecks are likely to keep a little more each year for the foreseeable future.
Minimum wage and overtime
Arkansas voters set the state minimum wage at $11.00 an hour, well above the federal $7.25. Overtime follows federal law at time and a half beyond 40 hours a week.
No local income taxes
Little Rock, Fayetteville, Fort Smith, and every other Arkansas city rely on sales and property taxes instead of wage taxes. Your state withholding does not change with your ZIP code.
Common Paycheck Mistakes in Arkansas
- Using last year's 3.9% top rate for 2026 planning. The May special session cut it to 3.7% retroactive to January 1.
- Assuming the top rate applies to all your income. Arkansas taxes only the slice inside each bracket at the higher rate.
- Forgetting Arkansas's personal tax credits, which directly reduce the bill after the bracket math is done.
- Comparing job offers across the Mississippi River on gross pay. Arkansas's falling rates versus a flat-tax neighbor change the net-pay winner at different salaries.
- Mixing up biweekly and semi-monthly schedules when budgeting around a $2,281 paycheck.
Frequently Asked Questions
What is Arkansas's income tax rate in 2026?
Arkansas uses graduated brackets topping out at 3.7%, cut from 3.9% in a May 2026 special session retroactive to January 1. Lower brackets start at 2%.
Why does Arkansas have two tax schedules?
Taxpayers with net taxable income around $94,700 or less use a five-bracket schedule; higher earners use a separate schedule. It is unusual, but the top rate is 3.7% either way.
What is the minimum wage in Arkansas in 2026?
It is $11.00 an hour, set by a voter-approved ballot measure. That is well above the federal $7.25 floor.
Do Arkansas cities charge income tax?
No. Arkansas municipalities cannot levy a local income tax on wages.
Is Arkansas still cutting its income tax?
So far, yes. The top rate has fallen from 7% in 2013 to 3.7% in 2026 across multiple sessions, and state leaders have said more cuts are coming if surpluses continue.
How does Arkansas compare to Mississippi or Louisiana?
Arkansas's 3.7% top rate now beats Louisiana's 3% flat only at some incomes, while Mississippi's 4% flat is slightly higher. Run your salary on the Mississippi and Louisiana pages to see which wins for you.
How accurate is this Arkansas paycheck calculator?
It uses 2026 federal figures and Arkansas's published 3.7% top rate with the state standard deduction. Arkansas's dual schedules mean high earners should treat the estimate as approximate.
Related Arkansas Tools
This page is part of the growing set of state paycheck tools on USACalculator. Compare Arkansas with Missouri to the north, Louisiana to the south, and Mississippi to the east, or build a matching stub with the Pay Stub Generator. For spending money, the Arkansas sales tax calculator covers the state and local rates.
Sources: IRS Publication 15-T, U.S. Department of Labor, Arkansas Department of Finance and Administration. Figures reflect 2026 tax law. This calculator gives an estimate for planning purposes and is not tax advice.