Arkansas Paycheck Calculator: 3.9% State Tax (2026)
Arkansas dropped its top income tax rate from 4.4% to 3.9% under Act 1 of the Second Extraordinary Session of 2024, putting more money into roughly 1.1 million paychecks statewide. For someone earning $55,000 a year, that single cut means about $275 more in annual take-home pay. The Arkansas paycheck calculator below accounts for that change along with 2026 federal brackets, updated FICA thresholds, and pre-tax deductions, so the number you see is the number you can actually plan around.
Quick version: Arkansas taxes wages at 2% to 3.9% using a five-bracket progressive system (or a compressed two-bracket table for income above $92,300). The state standard deduction is $2,470 for single filers and $4,940 for married-filing-jointly, with a $29 per-person tax credit on top. Combined with 2026 federal brackets and FICA, a $55,000 single filer keeps about $44,763 per year, or roughly $1,722 per bi-weekly paycheck. Arkansas has no local income taxes, so the state layer is your only state-level paycheck deduction.
If you are comparing multiple states, the paycheck calculator main guide covers all fifty.
Paycheck Calculator
See your take-home pay after federal taxes, state taxes, FICA, and deductions. Select your state below. Adjust any value and results update in real time.
How to Use the Arkansas Paycheck Calculator
Start with four inputs: your gross pay per period, your pay frequency, your filing status, and any pre-tax payroll deductions like a 401(k) contribution or health savings account (HSA) premium. The calculator applies 2026 federal withholding brackets, Arkansas state income tax, and FICA (Social Security plus Medicare), then returns your estimated net pay.
A quick note on pay frequency, because this is where most people get confused. Bi-weekly means every other week, giving you 26 paychecks a year. Semi-monthly means twice a month, the 1st and the 15th for example, giving you 24 paychecks. The distinction matters: a bi-weekly paycheck is slightly smaller per check, but you get two extra per year. Choose the wrong frequency and every number downstream shifts.
If you earn the Arkansas minimum wage of $11.00 per hour, enter that rate along with your typical weekly hours to see your estimated take-home amount after all withholding.
Understanding Your Arkansas Paycheck
Three layers of withholding reduce your gross pay before it reaches your bank account: federal income tax, Arkansas state income tax, and FICA (Social Security and Medicare). On top of those mandatory taxes, your employer may also subtract voluntary payroll deductions. A 401(k) contribution, health insurance premiums, or a flexible spending account are common examples. Pre-tax deductions lower your taxable income before withholding is calculated; post-tax deductions like a Roth 401(k) do not.
Here is what that means for your paycheck if you live in Arkansas: the state has no local city or county income taxes. That is one fewer line item compared to states like Ohio, Kentucky, or Maryland, where municipal taxes can add another 1% to 3% on top of everything else. It also means you never need to look up a city rate or worry about changing jobs across county lines within the state.
Residents of Texarkana, however, should know about the border-city exemption. Because the city straddles the Arkansas-Texas line, qualifying Texarkana residents on the Arkansas side can claim an exemption from state income tax on wages earned within the city. The exemption exists to level the playing field with Texas, which has no state income tax at all.
Arkansas State Income Tax Rates (2026)
Arkansas uses a dual-bracket system, and it is one of only five states with a two-tier structure. Which table applies to you depends on whether your net income is above or below $92,300 for the 2026 tax year.
Brackets for Net Income of $92,300 or Less
| Taxable Income | Rate |
|---|---|
| $0 – $5,499 | 0% |
| $5,500 – $10,899 | 2% |
| $10,900 – $15,599 | 3% |
| $15,600 – $25,699 | 3.4% |
| $25,700 – $92,300 | 3.9% |
Brackets for Net Income Over $92,300
| Taxable Income | Rate |
|---|---|
| $0 – $4,600 | 2% |
| Over $4,600 | 3.9% |
Source: Arkansas Economic Development Commission; Arkansas DFA Withholding Tax Formula (effective 01/01/2025).
The dual-bracket structure catches people off guard. If you earn $92,300 or less, your first $5,499 is tax-free and the rates step up gradually. Cross the $92,300 threshold and Arkansas recalculates using a compressed two-bracket table: only $4,600 at 2% and everything above that at 3.9%. The top marginal rate is the same either way, but the effective rate for higher earners is slightly different because the lower brackets are narrower.
Before the brackets are applied, Arkansas allows a standard deduction of $2,470 for single filers ($4,940 for married-filing-jointly). The state also provides a personal exemption structured as a $29 tax credit per exemption claimed on Form AR4EC. Those amounts are modest compared to federal levels, but they still reduce your tax liability before withholding hits.
Example calculation. On a $55,000 salary filing single, you first subtract the $2,470 Arkansas standard deduction, leaving $52,530 in taxable income. Since that falls under $92,300, the lower table applies: $0 on the first $5,499, then $108 on the next $5,400 at 2%, $141 on the next $4,700 at 3%, $343 on the next $10,100 at 3.4%, and $1,046 on the remaining $26,830 at 3.9%. That subtotal of $1,638 minus the $29 personal exemption credit equals roughly $1,610 for the year, or about $61.92 per bi-weekly paycheck. Your effective state rate comes out to approximately 2.93%.
Where the rate has been, and where it may go. Arkansas has cut its top individual income tax rate in each of the last several sessions:
| Year | Top Rate |
|---|---|
| 2019 | 5.90% |
| 2020 | 5.90% |
| 2021 | 4.90% |
| 2022 | 4.90% |
| 2023 | 4.40% |
| 2024 | 4.40% |
| 2025–2026 | 3.90% |
Source: Arkansas Policy Foundation.
Legislative leadership has indicated the goal for the next special session, expected immediately after the fiscal session beginning April 8, 2026, is to reduce the top marginal rate from 3.9% to 3.49%, though cuts ranging from 0.2 to 0.5 percentage points remain under discussion. The Arkansas General Assembly is also considering simplifying the dual-bracket tables during that session. If a further cut is enacted, the calculator on this page will be updated to reflect the new rate.
2026 Federal Income Tax Brackets
Federal withholding is typically the largest single deduction on an Arkansas paycheck. The seven brackets for 2026, set by the IRS under the One Big Beautiful Bill Act (OBBBA) and published in Revenue Procedure 2025-32, are shown below for single filers.
| Taxable Income (Single) | Rate |
|---|---|
| $0 – $12,400 | 10% |
| $12,401 – $50,400 | 12% |
| $50,401 – $105,700 | 22% |
| $105,701 – $201,775 | 24% |
| $201,776 – $256,225 | 32% |
| $256,226 – $640,600 | 35% |
| $640,601 + | 37% |
For married-filing-jointly filers, the 10% bracket covers income up to $24,800 and the 12% bracket extends to $100,800. The standard deduction increases to $16,100 for single filers and $32,200 for married-filing-jointly filers in 2026.
To connect this to an Arkansas earner: on that same $55,000 salary filing single, after claiming the $16,100 federal standard deduction your taxable income drops to $38,900. Federal tax on that amount works out to $1,240 at 10% on the first $12,400 and $3,180 at 12% on the remaining $26,500, for a total of $4,420. That translates to approximately $170 withheld per bi-weekly paycheck and an effective federal rate of about 8.0% of gross pay. The precise withholding amount on your paycheck may differ depending on the elections you made on your W-4, particularly Step 2 (multiple jobs), Step 3 (dependents), and Step 4 (extra withholding or additional income).
FICA: Social Security and Medicare (2026)
FICA splits into two parts. Social Security is taxed at 6.2% on earnings up to the 2026 wage base of $184,500, an increase from $176,100 in 2025. Medicare is taxed at 1.45% on all earnings, with an Additional Medicare Tax of 0.9% kicking in on wages above $200,000 for single filers ($250,000 for married-filing-jointly, $125,000 for married-filing-separately).
Your employer pays a matching 6.2% for Social Security and 1.45% for Medicare, but that share does not appear on your pay stub as a deduction. It is a separate cost to the business.
For the $55,000-salary example, your annual FICA is $3,410 for Social Security (6.2% of $55,000) plus $797.50 for Medicare (1.45% of $55,000), totaling $4,207.50 per year or about $161.83 per bi-weekly paycheck.
Putting It All Together: Your Take-Home Breakdown
Here is the combined picture for a single filer earning $55,000 annually, paid bi-weekly, with no pre-tax deductions:
| Deduction | Annual | Per Paycheck (Bi-Weekly) |
|---|---|---|
| Federal income tax | $4,420 | $170.00 |
| Arkansas state income tax | $1,610 | $61.92 |
| Social Security (6.2%) | $3,410 | $131.15 |
| Medicare (1.45%) | $797.50 | $30.67 |
| Total deductions | $10,237.50 | $393.75 |
| Net take-home pay | $44,762.50 | $1,721.63 |
That is roughly 81.4% of gross pay reaching your bank account. Add a 6% 401(k) contribution ($3,300 pre-tax) and your taxable income drops, shifting the numbers further. Run the numbers in the Arkansas paycheck calculator above with your specific inputs to see your exact take-home pay.
Frequently Asked Questions
How is Arkansas state income tax calculated on my paycheck?
Arkansas uses a progressive system with either five brackets (if your net income is $92,300 or less) or two brackets (if it exceeds $92,300). Your employer first subtracts the standard deduction ($2,470 for single filers, $4,940 for joint filers) from your wages for the pay period, then applies the bracket rates to the result, and finally subtracts the per-period personal exemption credit ($29 annually per exemption). The withholding is based on information you provide on Form AR4EC, the Arkansas Employee’s Withholding Exemption Certificate. The withholding tables your employer uses are published by the Arkansas Department of Finance and Administration.
What is the top Arkansas income tax rate for 2026?
The top marginal rate is 3.9%, effective since January 1, 2025. A further reduction to 3.49% is under discussion for a special session expected in mid-2026.
Does Arkansas have local city or county income taxes?
No. Arkansas does not impose any local income taxes, which simplifies paycheck calculations compared to states that do.
What is the Texarkana border-city exemption?
Arkansas residents living within the Texarkana city limits may claim an exemption from Arkansas income tax on wages earned in the city. The exemption exists because the Texas portion of Texarkana has no state income tax, and the provision prevents Arkansas-side residents from being at a financial disadvantage.
How much FICA will be withheld from my paycheck in 2026?
The employee share is 7.65% of gross wages: 6.2% for Social Security (up to the $184,500 wage base) plus 1.45% for Medicare. If you earn more than $200,000, an additional 0.9% Medicare surtax applies to wages above that threshold.
What is the difference between marginal and effective tax rate?
Your marginal rate is the rate applied to your last dollar of income. For example, 3.9% if your Arkansas taxable income exceeds $25,700. Your effective rate is the total tax divided by total income, which is always lower because your first dollars are taxed at lower rates or not at all. In the $55,000 example above, the marginal Arkansas rate is 3.9% but the effective rate is about 2.93%.
How do I adjust my withholding if too much or too little is being taken out?
For federal taxes, submit an updated W-4 to your employer. For Arkansas state taxes, submit an updated Form AR4EC. Common reasons to update include a change in filing status, adding or losing a dependent, or starting a second job.
Do I need to file an Arkansas return if I work remotely from another state?
Generally, you owe Arkansas income tax on income earned while physically present in the state. If you live in Arkansas but work remotely for an out-of-state employer, Arkansas taxes that income as resident income. Reciprocal agreements may apply in limited cases. Check with the Arkansas Department of Finance and Administration or a qualified tax professional for your specific situation.
Sources
All tax rates and thresholds cited in this article are drawn from official government publications and independent policy research. Key sources include the Arkansas Department of Finance and Administration (3.9% top rate, withholding tables), the Arkansas Economic Development Commission (dual-bracket tables and rates), the Social Security Administration (2026 wage base of $184,500), the IRS Revenue Procedure 2025-32 (2026 federal brackets, standard deductions, OBBBA adjustments), the IRS Topic 751 (FICA rates), and the Tax Foundation (state rate comparisons).
Looking at how Arkansas compares to its neighbors? Use the calculators for Texas paycheck calculator (no state income tax), Oklahoma paycheck calculator (top rate 4.50%), Missouri paycheck calculator (top rate 4.70%), or Tennessee paycheck calculator (no state income tax) to see how geography shifts your take-home pay. If you are evaluating salary offers, the salary calculator by profession can help you benchmark gross pay before you run the net-pay numbers here. And if you are an Arkansas homeowner weighing a cash-out refinance, the HELOC payment calculator may also be useful.
For the full list of state-by-state tools, return to the paycheck calculator guide.
This calculator provides estimates for informational purposes only. It is not tax, legal, or financial advice. Consult a qualified tax professional or the Arkansas Department of Finance and Administration for guidance specific to your situation. Rates and thresholds are current as of March 2026 and may change if new legislation is enacted.
Jordan Wells
This calculator provides estimates for informational purposes only. Actual amounts may vary based on additional deductions, local taxes, and employer-specific withholdings. Consult your HR department or a licensed tax professional for exact figures.