ARKANSAS PAYCHECK CALCULATOR
2026 top rate: 3.7%, down from 3.9%Arkansas just handed its workers a mid-year tax cut. In a special session called by Governor Sarah Huckabee Sanders, lawmakers passed HB 1001 and SB 1 in May 2026, trimming the top individual income tax rate from 3.9% down to 3.7%, and made it retroactive to January 1, 2026. That’s the fourth rate cut in four years for the state, and it means every paycheck for the rest of the year reflects a lighter state tax bite than employees saw in January.
On a typical Arkansas paycheck you’ll see four lines pulled out before you get paid: federal income tax, Arkansas state income tax, Social Security, and Medicare. There’s no city or county income tax anywhere in the state, and no state disability insurance tax either, so those four are the whole story. If you’re comparing offers or thinking about a move, it helps to see Arkansas next to its neighbors: check out the Texas paycheck calculator for a no-income-tax comparison, the Oklahoma paycheck calculator, the Missouri paycheck calculator, or the Louisiana paycheck calculator.
Estimate only, for tax year 2026. Assumes the standard deduction, no pre-tax deductions (401k, health insurance), and no tax credits. Actual withholding may differ.
Every Deduction on an Arkansas Paycheck
- Federal income tax: Based on the 2026 IRS brackets, 10% to 37%, after the $16,100 single / $32,200 joint standard deduction.
- Arkansas state income tax: Graduated from 0% to 3.7% for 2026, after the state’s own $2,470 standard deduction (single). Arkansas uses the same bracket widths for single, married, and head of household filers, it doesn’t widen the brackets for joint filers the way the federal system does.
- Social Security: 6.2% of gross wages up to $184,500 for 2026. Once you cross that wage base, this line disappears from your remaining paychecks for the year.
- Medicare: 1.45% of all wages, no cap. High earners pay an extra 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly).
- What’s NOT on an Arkansas paycheck: no state disability insurance tax, no paid family leave tax, and no city or county income tax. Arkansas is one of the states that keeps payroll deductions genuinely simple.
Arkansas Just Cut Its Top Tax Rate, Again
Arkansas has trimmed its top individual income tax rate four times in four years, from 5.9% in 2022 down to 3.7% now. The latest cut came through a special legislative session in May 2026. Governor Sarah Huckabee Sanders called lawmakers back to Little Rock, and on May 6, 2026 they passed HB 1001 and SB 1, which lowered the top individual rate from 3.9% to 3.7% and the top corporate rate to 4.1%. Both bills were made retroactive to January 1, 2026, so anyone who had 3.9% withheld from a January or February paycheck is already getting the difference back through smaller withholding for the rest of the year, or a bigger refund next spring.
For most Arkansas taxpayers, income up to $94,700 in net income runs through this five-step table:
| Taxable Income (Net Income up to $94,700) | Rate |
|---|---|
| $0 – $5,600 | 0% |
| $5,600 – $11,200 | 2% |
| $11,200 – $16,000 | 3% |
| $16,000 – $26,400 | 3.4% |
| $26,400 – $94,700 | 3.7% |
Once net income passes $94,700, Arkansas switches to a separate two-tier table instead of continuing the graduated schedule above:
| Taxable Income (Net Income above $94,700) | Rate |
|---|---|
| First $4,700 | 2% |
| Everything above $4,700 | 3.7% |
Arkansas also softens the jump into that higher-income table with a small bracket-adjustment credit for taxpayers landing between $94,701 and $97,600 in net income, phasing from $290 down to $0 in $100 increments, so nobody loses more take-home pay than they gained by crossing the line.
Arkansas vs. Its Neighbors: $70,000, Single Filer
Here’s how Arkansas stacks up against three nearby states and one no-tax outlier, all at $70,000 in gross salary for a single filer, using each state’s 2026 standard deduction or exemption.
| State | State Tax Owed | Est. Net Pay* |
|---|---|---|
| Arkansas | ~$2,131 | ~$55,944 |
| Texas | $0 (no income tax) | ~$58,075 |
| Louisiana | ~$1,725 | ~$56,350 |
| Oklahoma | ~$2,715 | ~$55,360 |
| Missouri | ~$2,230 | ~$55,845 |
*Net pay is after federal tax, state tax, Social Security, and Medicare, before any pre-tax deductions. Oklahoma and Missouri figures are estimates built from each state’s published top rate and general bracket structure; their full official bracket tables should be confirmed before this comparison goes live.
Arkansas Tax Burden: The Full Picture
| Tax Type | Arkansas | National Average |
|---|---|---|
| Top income tax rate | 3.7% | ~5.0% |
| State + avg. local sales tax | 9.46% (3rd highest in the US) | ~7.5% |
| Effective property tax rate | 0.56% | ~0.99% |
| Estate / inheritance tax | None | Varies by state |
The trade-off is straightforward: Arkansas keeps income and property taxes light, but leans hard on sales tax to fund the state, its combined rate is the third-highest in the country. Groceries got a break starting January 1, 2026 though, the state sales tax on food and food ingredients dropped to zero, even though some local grocery taxes can still apply.
Arkansas Is Genuinely Tax-Friendly for Retirees
If you’re retired or planning for it, Arkansas treats retirement income better than its low property taxes alone would suggest. Social Security benefits are never taxed by the state, no matter your total income. Military retirement pay is fully exempt too. On top of that, anyone 59 and a half or older can exclude up to $6,000 per person of income from pensions, 401(k)s, and IRA distributions, so a retired couple can shelter up to $12,000 combined before the graduated rates even apply. Add in a homestead property tax credit worth up to $600 for 2026, and Arkansas holds up well against neighboring states that tax at least part of Social Security or pension income.
Federal Tax: A Worked Example
Take a single filer earning $70,000 in 2026. Subtract the federal standard deduction of $16,100, and taxable income comes to $53,900. Here’s how that runs through the brackets:
- 10% on the first $12,400 = $1,240
- 12% on $12,400 to $50,400 ($38,000) = $4,560
- 22% on $50,400 to $53,900 ($3,500) = $770
Total federal tax: $6,570, an effective rate of 9.4% on the full $70,000, even though the marginal rate is 22%. That’s the whole point of a bracketed system: only the last few thousand dollars get taxed at the top rate you technically fall into.
Frequently Asked Questions
What is the Arkansas income tax rate for 2026?
Arkansas taxes income on a graduated scale from 0% to 3.7% for 2026. The top rate was cut from 3.9% to 3.7% by HB 1001 and SB 1, signed by Governor Sarah Huckabee Sanders on May 6, 2026, retroactive to January 1, 2026. The 3.7% rate applies once taxable income passes $26,400 for most filers.
Does Arkansas tax Social Security benefits?
No. Arkansas fully exempts Social Security retirement benefits from state income tax, no matter how much other income you have. Military retirement pay is also fully exempt.
How much is taken out of a paycheck in Arkansas?
A typical Arkansas paycheck has four deductions: federal income tax, Arkansas state income tax (0% to 3.7%), Social Security (6.2% up to $184,500 in 2026), and Medicare (1.45%, with an extra 0.9% above $200,000 for single filers). There is no state disability insurance tax and no local income tax anywhere in Arkansas.
Does Arkansas have local or city income taxes?
No. Arkansas does not allow cities or counties to levy a separate income tax, unlike states such as Ohio or Pennsylvania. The only income tax on an Arkansas paycheck is state and federal.
Is Arkansas a good state for retirees, tax-wise?
For income tax purposes, yes. Arkansas exempts Social Security and military retirement pay entirely, and lets residents 59 and a half or older exclude up to $6,000 per person of pension, 401(k), and IRA income. Property taxes are also well below the national average, at roughly 0.56% of home value.
What is the Arkansas standard deduction for 2026?
The Arkansas standard deduction for 2026 is $2,470 for single filers. It is separate from, and much smaller than, the federal standard deduction of $16,100 for single filers in 2026.
Arkansas’s tax code has moved a lot in a short time, four rate cuts in four years is not the norm for most states. Anyone budgeting off last year’s pay stub should expect this year’s Arkansas withholding to run a little lighter, and it’s worth checking a fresh pay stub against the current bracket table rather than assuming last January’s numbers still hold.
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