ARKANSAS PAYCHECK CALCULATOR — 0% TO 3.7% PROGRESSIVE TAX, $2,470 DEDUCTION, $29 EXEMPTION
Arkansas taxes wages at 0%–3.7% across 5 brackets, with a $2,470 standard deduction and $29 personal exemption per person. Texarkana residents pay zero state tax, there’s no local tax or SDI, and Social Security isn’t taxed. Enter your salary below for instant, accurate take-home pay.
- 0%-3.7% Tax
- $2,470 Deduction
- $29 Exemption
- Texarkana Exemption
- No Local Tax
- No SDI
- No Tax on SS
- $11.00 Min Wage
- Free & No Signup
Arkansas Paycheck Calculator 2026
payscheckcalculator.com — Accurate take-home pay for Arkansas employees
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🌿 Your Arkansas Take-Home Pay
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ℹ️ Arkansas 2026: Progressive rates 0%–3.7% (cut from a 3.9% top rate earlier in 2025, per HB 1001 / SB 1, retroactive to Jan 1, 2026).
Std. deduction: $2,470/taxpayer ($4,940 married, both earning).
Personal tax credit: $29/exemption. Low-income credit up to $60 for net income ≤ $26,500 (phases to $0 at $27,601+).
Texarkana residents = $0 state tax on Texarkana-earned income.
No local tax. No SDI. No paid-leave payroll tax.
❓ Arkansas Paycheck FAQs
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ARKANSAS TAX RATE — 0% TO 3.7% PROGRESSIVE BRACKETS EXPLAINED
Arkansas does not have a flat tax. It uses a progressive system with five brackets, including a 0% bracket on the first portion of income. You pay different rates on different portions of your income — higher earners pay more only on the money above each threshold.
The Brackets for 2026 net income up to $94,700
0% on the first $5,599 2% on the next $5,600 (from $5,600 to $11,199) 3% on the next $4,800 (from $11,200 to $15,999) 3.4% on the next $10,400 (from $16,000 to $26,399) 3.7% on any amount over $26,400 Arkansas’s top rate was cut from 3.9% to 3.7% in a May 2026 special session, retroactive to January 1, 2026 — the state’s fourth rate cut in four years.
Example — Single Person with $40,000 Taxable Income
First $5,599 at 0% = $0 Next $5,600 at 2% = $112 Next $4,800 at 3% = $144 Next $10,400 at 3.4% = $354 Remaining $13,601 at 3.7% = $503 Total Arkansas state tax before credit = $1,113. Minus $29 personal credit = $1,084
Example — Single Person with $60,000 Taxable Income
$0 + $112 + $144 + $354 + ($33,600 × 3.7% = $1,243) = $1,853 before credit Minus $29 personal credit = $1,824
Example — Single Person with $25,000 Taxable Income
$0 + $112 + $144 + ($9,000 × 3.4% = $306) = $562 before credit Minus $29 personal credit = $533
What is Taxable Income
Taxable income is not your gross salary. You subtract two things before applying the brackets:
Pre-tax deductions like 401(k) contributions and health insurance The Arkansas standard deduction ($2,470) The personal exemption ($29 per person) is applied separately, at the end, as a direct credit against your tax bill — it does not reduce your taxable income.
Example — Single Person Earning $60,000 with 5% 401(k)
Gross income: $60,000
Minus 401(k) (5%): $3,000
Minus standard deduction: $2,470
Taxable income: $54,530 Apply the brackets: $0 + $112 + $144 + $354 + ($28,130 × 3.7% = $1,041) = $1,650
Minus $29 personal credit = $1,621 Without the 401(k) contribution, tax would be $1,732. The 401(k) saves about $111 in state tax.
Same Brackets, Different Deduction
Arkansas uses the same bracket rates for every filing status. The standard deduction is $2,470 per taxpayer — a married couple where both spouses claim it gets $4,940 combined. The personal credit is $29 per person, so a married couple claims $58.
Example — Married Couple, $80,000 Taxable Income
$0 + $112 + $144 + $354 + ($53,600 × 3.7% = $1,983) = $2,593 before credit
Minus $58 personal credit (2 people) = $2,535
High Earners (Net Income Over $94,700)
Above $94,700, Arkansas switches to a separate two-tier table: 2% on the first $4,700, then 3.7% on everything above that. A bracket-adjustment amount applies for income between $94,701 and $97,600 to smooth the transition.
Example — Single Person, $200,000 Net Income
$4,700 × 2% = $94, plus $195,300 × 3.7% = $7,226. Total = $7,320 before credit.
Minus $29 personal credit = $7,291 — an effective rate of about 3.65%.
One Thing to Remember
The brackets apply to taxable income, not gross income. After subtracting your standard deduction and pre-tax contributions, your taxable income — and your tax bill — is lower than the brackets alone suggest. Use the calculator above to see your exact numbers, including standard deduction, personal credit, and the Texarkana exemption if it applies to you
Arkansaa Low-Income Tax Credit — Up To $60 Extra Credit
Additional Tax Credit for Qualified Individuals
Beyond the $29 personal tax credit, Arkansas has a second, separate credit aimed specifically at lower-income filers. Most paycheck calculators skip this entirely — ours doesn't.
How it works for 2026:
If your Arkansas net taxable income is $27,600 or less, you qualify. It maxes out at $60 for income at or below $26,500, then phases down by $5 for every additional $100 of income until it hits $0 at $27,601.
| Net Taxable Income Range | Credit Amount |
|---|---|
| $0 – $26,500 | $60 |
| $26,501 – $26,600 | $55 |
| $26,601 – $26,700 | $50 |
| $26,701 – $26,800 | $45 |
| $26,801 – $26,900 | $40 |
| $26,901 – $27,000 | $35 |
| $27,001 – $27,100 | $30 |
| $27,101 – $27,200 | $25 |
| $27,201 – $27,300 | $20 |
| $27,301 – $27,400 | $15 |
| $27,401 – $27,500 | $10 |
| $27,501 – $27,600 | $5 |
| $27,601 and up | $0 |
Example — Single Filer, $27,000 Taxable Income
- Personal tax credit: $29
- Low-income credit (from table): $35
- Total credits against tax owed: $64
- Filing Jointly: Married couples must use Filing Status 2 to qualify. Credit har spouse ki income share par alag se calculate hokar end mein combine hoti hai.
- Who this helps: Part-time workers, students, seasonal employees, aur minimum wage earners jo lagbhag 2,400 hours/year ($11/hour par) kaam karte hain.
Our calculator applies this credit automatically based on your inputs.
Arkansas Tax-Cutting Streak — Why Your Rate Keeps Going Down
Arkansas has cut its top individual income tax rate five times since 2015. The state’s leadership has publicly shared a long-term goal of phasing out the individual income tax entirely.
Here is exactly how a $60,000 earner’s estimated tax bill has shrunk over the last decade:
| Effective Date | Top Rate | Approx. Tax on $60,000 (Single, Std. Deduction) |
|---|---|---|
| 2015 | 7.0% | ~$2,900 |
| 2021 | 5.9% | ~$2,400 |
| 2022 | 4.9% | ~$2,000 |
| 2023 | 4.7% | ~$1,900 |
| 2024 – Early 2025 | 4.4% | ~$1,850 |
| Mid – Late 2025 | 3.9% | ~$1,824 |
| 2026 (Current) | 3.7% | ~$1,753 |
Note: Figures are approximate, illustrative estimates for a single filer using each year’s standard deduction and bracket structure. Use the calculator above to find your exact numbers.
Timeline of the Recent Cuts
2015 – 2021 | The Long-Term Baseline
Arkansas begins its steady downward trend, lowering the top individual income tax rate from 7.0% to 5.9%.
2022 – 2023 | Post-Pandemic Reductions
Supported by consecutive state budget surpluses, the top rate drops first to 4.9% and then to 4.7%.
2024 – 2025 | The Sanders Administration Cuts
The state accelerates tax relief, driving the top rate down to 4.4%, and eventually to 3.9% by late 2025.
May 4–6, 2026 | The Retroactive 3.7% Drop
Governor Sarah Huckabee Sanders calls a special legislative session. Within three days, identical bills (HB1001 and SB1) are passed and signed. This cuts the top individual rate to 3.7%, retroactive to January 1, 2026. State officials say roughly 1.1 million taxpayers with taxable income above $26,400 benefit directly.
What This Means for Your Paycheck
Withholding Lag: If your employer did not adjust your payroll withholding mid-year, you might be over-withheld for the first half of 2026. This means you will either see a larger refund (or lower liability) when you file next spring, or your employer will adjust your withholding for the remaining months of the year to true it up.
The Bottom Line: Regardless of when your paychecks adjust, your actual tax liability for the entirety of 2026 is based on the new 3.7% top rate, not 3.9%.
Who Benefits: State officials estimate that roughly 1.1 million individual taxpayers with a net taxable income above $26,400 benefit directly from this latest change.
The Bigger Picture
Arkansas’s massive general revenue surplus has funded each of these consecutive cuts. Lawmakers have described this strategy as “absorbing” the surplus rather than cutting existing state services.
Whether this downward trend continues into 2027 and beyond will depend entirely on future revenue surpluses and future legislative sessions; there are no automatic or scheduled future rate cuts built into current state law.
ARKANSAS STANDARD DEDUCTION — $2,470
The standard deduction reduces your taxable income. Lower taxable income means lower tax. Arkansas’s standard deduction is still low compared to most states, even after a recent increase.
Arkansas Standard Deduction for 2026
$2,470 per taxpayer — the same amount regardless of filing status. A married couple filing jointly can claim $4,940 if both spouses qualify.
How This Compares to Federal
The federal standard deduction for single filers is $16,100 for 2026. Arkansas gives you $2,470 — about one-sixth of that.
The federal amount for married couples is $32,200. Arkansas gives $4,940 — also about one-sixth.
Why is Arkansas’s Deduction So Low?
Arkansas pairs its low standard deduction with a personal tax credit most states don’t have. You get $29 per person in your household as a direct credit against your tax bill (not a deduction from income). For a family of four, that’s a $116 credit on top of the standard deduction.
Example — Single Person with $60,000 Income
Gross income: $60,000
Subtract standard deduction: $2,470
Taxable income: $57,530
(The $29 personal credit is applied later, directly against the tax owed — it doesn’t reduce taxable income.)
Example — Married Couple with Two Children ($80,000 Income)
Gross income: $80,000
Subtract standard deduction (joint): $4,940
Taxable income: $75,060
Personal credit applied against tax owed: 4 people × $29 = $116
How the Deduction is Applied
You subtract the standard deduction before calculating your tax. It reduces the income that runs through the progressive brackets. On $60,000 gross income, you pay tax on $57,530 after the standard deduction — then the $29 credit is subtracted from the tax bill itself.
What if Your Deductions are Higher?
You can itemize instead if your deductions exceed $2,470. Common itemized deductions include:
Medical expenses over 7.5% of your income
Mortgage interest
State and local taxes
Charitable contributions
For most people, the standard deduction is easier — no paperwork, no receipts.
One Thing to Check
Married filing separately: both spouses can each claim $2,470, same as the combined joint amount. Both spouses must use the same method — if one itemizes, both must itemize.
Use the calculator above to see your exact deduction and take-home pay, including the standard deduction, personal credit, progressive brackets, Texarkana exemption, no SDI, and no tax on Social Security.
ARKANSAS PERSONAL EXEMPTION — $29 PER PERSON
This is one of the smallest tax credits in the country. But it still exists — many states eliminated their personal exemptions years ago. Arkansas kept theirs. You get $29 for each person in your household. It’s applied as a tax credit, not a deduction — it directly reduces your tax bill dollar for dollar.
Who Qualifies
Yourself: $29, claimed on every Arkansas return Your spouse: another $29, if married filing jointly Each dependent you claim on your federal return: $29 per person
Example — Single Person with No Children
1 person × $29 = $29 tax credit
Example — Married Couple with No Children
2 people × $29 = $58 tax credit
Example — Married Couple with Two Children
4 people × $29 = $116 tax credit
Example — Single Parent with One Child
2 people × $29 = $58 tax credit
How the Credit Saves You Money
Unlike a deduction, which reduces taxable income, a credit reduces your tax bill directly. Each $29 exemption saves exactly $29 in state tax — no bracket math needed. For a family of four, $116 in exemptions saves $116 in tax.
Who Counts as a Dependent
You can claim a personal exemption for a dependent if:
The dependent is your child, stepchild, foster child, sibling, half-sibling, or descendant of any of these They lived with you for more than half the year They didn’t provide more than half of their own financial support They’re under age 19 (or under 24 if a full-time student) There’s no age limit for permanently disabled dependents
Divorced Parents
The parent with custody for more than half the year claims the exemption. If custody is split exactly 50-50, the parent with the higher adjusted gross income claims it.
Elderly Parents
If you support an elderly parent who lives with you, you can claim them as a dependent — as long as their gross income is under $5,300 (2026 IRS limit) and you provide more than half their support. That’s an extra $29 exemption.
Adult Children with Disabilities
Adult children who are permanently and totally disabled qualify as dependents regardless of age, as long as they lived with you or you provided more than half their support — an extra $29 exemption many people miss.
How to Claim the Exemption
The exemption is applied as a credit directly against your tax bill, not subtracted from your income. Tax software calculates it automatically when you enter your dependents. If you’re an employee, adjust your Arkansas withholding form (AR4EC) to claim the correct number of exemptions so your paycheck withholding matches.
Why Most Calculators Miss This
Many online paycheck calculators assume no state has a personal exemption and miss Arkansas’s $29-per-person credit entirely. Our calculator above includes it — enter your filing status and dependents, and it automatically applies the $29 credit per person, along with the standard deduction, progressive tax brackets, Texarkana exemption, no SDI, and no tax on Social Security.
ARKANSAS TEXARKANA EXEMPTION — BORDER CITY SPECIAL RULE
If you live in Texarkana, Arkansas, your earned income is exempt from Arkansas state tax — no matter where you physically work. If you live in Texarkana, Texas, income you earn working within the city of Texarkana, Arkansas is also exempt (any other Arkansas-source income you have is still taxable).
How It Works
Texarkana straddles the Arkansas-Texas border — two cities, one metro area. Arkansas created a special exemption for residents on both sides:
Texarkana, Arkansas residents: All earned income is exempt from Arkansas income tax, regardless of where the job is located.
Texarkana, Texas residents: Only income earned from working in Texarkana, Arkansas is exempt. Income from other Arkansas sources remains taxable.
Example — Living in Texarkana, Arkansas, Working Anywhere
You live in Texarkana, AR. Whether your job is in Texarkana or you commute to Little Rock, that earned income is exempt from Arkansas state tax.
Example — Living in Texarkana, Texas, Working in Texarkana, Arkansas
You live across the state line in Texarkana, Texas, but your job is with a company physically located in Texarkana, Arkansas. That income is exempt from Arkansas tax.
Example — Living Outside Texarkana Entirely
You live in a different Arkansas city but work in Texarkana. You do not qualify — the exemption is residency-based, not workplace-based.
Residency Requirements
You must file using your actual street address within the city limits of Texarkana, Arkansas or Texarkana, Texas. A P.O. Box or rural route address disqualifies the exemption.
How to Claim It — The Actual Process
Give Form AR4EC(TX) to your employer, certifying your Texarkana residency (Arkansas-side or Texas-side box, as applicable).
Your employer stops withholding Arkansas tax and issues you Form AR-TX each year.
When you file your Arkansas return, attach your W-2 and Form AR-TX, and claim the exemption as an adjustment on Form AR1000ADJ.
You must still file a full Arkansas return reporting all income from all sources — the exemption is claimed as a line-item adjustment, not by skipping the return.
Non-wage income (interest, dividends, Schedule C/E/F, retirement) doesn’t need Form AR-TX but may require other documentation.
How Much Can You Save
Rough estimates for a Texarkana, Arkansas resident, single filer, no pre-tax deductions, standard deduction only:
On $60,000 salary: save roughly $1,700 per year
On $80,000 salary: save roughly $2,500 per year
Above $94,700, Arkansas’s two-tier high-earner bracket applies — use the calculator above for an exact figure
Working Remotely from Texarkana
If you live in Texarkana, Arkansas and work remotely for a company based anywhere else — New York, California, wherever — your income still qualifies, since the exemption is based on where you live, not your employer’s location.
Self-Employed Workers
If you’re self-employed and a Texarkana, Arkansas resident, your business income is exempt the same way wage income is. You’ll still need to file a full Arkansas return and claim the exemption on Form AR1000ADJ.
If Your Employer Won’t Stop Withholding
Give them Form AR4EC(TX). If they still don’t adjust withholding, you can call the Arkansas DFA Withholding Tax Branch at (501) 682-7290. Worst case, you’ll get the amount back as a refund when you file — but that means waiting months for money you didn’t need to have withheld.
One Thing to Remember
This exemption only applies to Arkansas state income tax. You still pay federal income tax, Social Security, and Medicare on all your wages regardless of where you live.
Use the calculator above and check the Texarkana box to see your exact take-home pay with this exemption applied.
ARKANSAS MINIMUM WAGE — $11.00 PER HOUR
Arkansas has its own minimum wage law, higher than the federal rate. For 2026, it remains $11.00 per hour — unchanged since 2021.
Who Gets Paid $11.00
Full-time, part-time, seasonal, temporary, and hourly employees all must be paid at least $11.00/hour. Salaried employees are different — they must earn at least $684 per week ($17.10/hour equivalent for 40 hours) to be exempt from overtime under federal rules.
Tipped Employees
Arkansas’s tipped minimum wage is $2.63 per hour — not the federal $2.13. If tips don’t bring an employee up to $11.00/hour, the employer must make up the difference.
Example — Restaurant Server
Base wage: $2.63 × 40 hours = $105.20
Tips earned: $300
Total: $405.20
Required minimum: $11.00 × 40 = $440.00. The server is $34.80 short — the employer must add $34.80.
If tips were $340 instead, total pay would be $445.20 — above $440, so no top-up needed.
How Arkansas Compares to Neighboring States
Arkansas: $11.00
Texas: $7.25 (federal floor, no state minimum)
Oklahoma: $7.25 (federal floor, no state minimum)
Missouri: $15.00 (higher — increased under Proposition A / HB 567)
Tennessee: $7.25 (federal floor, no state minimum)
Louisiana: $7.25 (federal floor, no state minimum)
Arkansas is ahead of most neighbors but well behind Missouri.
Cities Cannot Set Their Own Rate
State law prevents Arkansas cities from setting local minimum wages. $11.00 applies statewide — Little Rock, Fort Smith, Fayetteville, Springdale, Jonesboro, everywhere.
Overtime
Overtime is 1.5× your regular rate for hours worked over 40 in a workweek.
Example — $15/hour, 45 hours worked: 40 × $15 = $600 regular, 5 × $22.50 = $112.50 overtime, total $712.50.
At minimum wage, your overtime rate is $16.50/hour.
Who is Exempt
Salaried executive, administrative, and professional employees earning at least $684/week
Outside salespeople
Some agricultural and seasonal workers
Independent contractors (not employees)
No Youth Minimum Wage
Arkansas doesn’t have a separate rate for workers under 18 — everyone gets $11.00/hour.
If Your Employer Pays Less
That’s illegal. File a complaint with the Arkansas Department of Labor and Licensing. Keep pay stubs and your own hour records — the department can order back pay and additional damages.
Take-Home Pay at Minimum Wage
At $11.00/hour, 40 hours/week: $440 weekly gross, about $22,880 annual gross. After federal tax, Arkansas state tax (now 0%–3.7%), Social Security, and Medicare, take-home is roughly $20,000–$20,800/year, or about $385–$400/week.
Will It Increase?
The $11.00 rate came from a 2018 voter referendum, reaching its final step in 2021. There’s no scheduled increase for 2026 or 2027 — any future change needs new legislation or another ballot initiative.
Use the calculator above with your exact hourly rate and hours to see your real take-home pay, including Arkansas’s 0%–3.7% brackets, $2,470 standard deduction, and $29 personal credit.
ARKANSAS: NO SDI AND NO TAX ON SOCIAL SECURITY
Two things Arkansas doesn’t take from your paycheck.
No SDI Tax
SDI (State Disability Insurance) funds disability benefits for workers who can’t work due to non-work illness, injury, or pregnancy. Only a handful of states have it — Arkansas is not one of them. California has the highest rate at 1.3% (as of 2026, with no wage cap — it applies to every dollar earned). Hawaii, New Jersey, New York, and Rhode Island also have similar programs.
What This Means for You
If you move from California to Arkansas, that 1.3% tax disappears:
$60,000 salary: save about $780/year
$100,000 salary: save about $1,300/year
$150,000 salary: save about $1,950/year
Example — Moving from California to Little Rock
$80,000 salary in California: SDI cost = $80,000 × 1.3% = $1,040/year. Move to Little Rock, and that $1,040 stays in your paycheck — about $87/month.
Other Disability Coverage
Arkansas has no state disability insurance, but some employers offer private disability insurance as a voluntary benefit — you can opt out if offered.
No Tax on Social Security Benefits
Arkansas doesn’t tax Social Security benefits at all, regardless of amount.
States That Still Tax Social Security (2026)
Only 8 states still tax it in some form: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont — most with income thresholds that exempt lower- and middle-income retirees. The other 42 states plus D.C. don’t tax it, including Arkansas. (Kansas, Missouri, Nebraska, North Dakota, and West Virginia all eliminated their Social Security tax in recent years — West Virginia completed its phase-out January 1, 2026.)
Example — Retired Couple with $50,000 Social Security
In Arkansas: $0 state tax. In the 8 taxing states, the amount owed depends heavily on income and age — many retirees in those states still pay little or nothing due to exemption thresholds, but higher earners can owe $1,000–$2,000+ depending on the state.
Other Retirement Income
Arkansas taxes pensions, 401(k) withdrawals, and IRA withdrawals as regular income at the 0%–3.7% progressive rates. Only Social Security itself is exempt.
Example — Married Couple, $40,000 Pension + $30,000 Social Security
Pension taxable income after standard deduction (~$35,060): roughly $870 in Arkansas state tax
Social Security: $0
Total Arkansas tax: about $870 (Actual amount varies with other deductions and income — use the calculator for your exact figures.)
Checking If Your Employer Is Withholding SDI Incorrectly
If you live and work in Arkansas, your pay stub shouldn’t show deductions labeled “SDI,” “CA SDI,” “State Disability,” or “TDI.” If it does — especially if your employer is based in California or another SDI state — ask payroll; you may be overpaying.
Workers’ Compensation, Unemployment Insurance, Paid Family Leave
Arkansas employers carry workers’ comp insurance (employer-paid, not deducted from your check). Unemployment insurance is also employer-paid. Arkansas has no state-mandated paid family leave program, unlike California, New Jersey, New York, or Massachusetts — so there’s no such deduction on your Arkansas paycheck.
Use the calculator above — it correctly applies no SDI, no Social Security tax, the 0%–3.7% progressive brackets, $2,470 standard deduction, $29 personal credit, and the Texarkana exemption if it applies to you.
Arkansas Retirement, Pension & Military Retirement Tax — What's Actually Exempt
What’s Actually Exempt from Arkansas State Income Tax?
Arkansas paycheck calculators almost universally get this section wrong or skip it entirely. Here is a clear breakdown of what is actually exempt from state income tax.
Military Retirement Pay: 100% Exempt
Since tax year 2018 (Act 141 of 2017), Arkansas fully exempts military retirement pay from state income tax — no dollar cap, no phase-out, no age requirement. This applies to retired members of the Army, Navy, Air Force, Marine Corps, Coast Guard, National Guard, and Reserves.
Example — Retired Army Colonel (Little Rock)
Receiving $65,000/year in military retirement pay owes $0 in Arkansas state tax on that income. The same $65,000 in Texas or Tennessee would also be $0 (no state income tax there), but in a state like California, it could cost several thousand dollars a year.
$6,000 Exemption on Other Retirement Income
If you are not talking about military retirement, Arkansas still gives every taxpayer a $6,000 exemption per person on:
- Employer-sponsored pension and 401(k) distributions
- Traditional IRA distributions (once you are 59½ or older)
This $6,000 is exempt regardless of your total distribution size — the first $6,000 simply isn't taxed, and anything above that is taxed as ordinary income at Arkansas's 0%–3.7% rates.
Example — Retiree with $20,000 IRA Distribution
- $20,000 distribution − $6,000 exemption = $14,000 taxable
- Apply the $2,470 standard deduction: $14,000 − $2,470 = $11,530 taxable income
- Arkansas tax on $11,530 (using progressive brackets): roughly $58 before the $29 personal credit.
- Important Limit: The $6,000 exemption is a combined cap across all pension and IRA income — it doesn't stack per account. Military retirees who claim the full military exemption cannot also claim the $6,000 exemption for other retirement income if their military exemption already exceeds $6,000.
- Premature Distributions: Early withdrawals before 59½ don't qualify for the $6,000 exemption unless they're due to death or disability. Withdrawals for medical expenses, education, or a first home purchase are taxed in full.
- Surviving Spouses: A surviving spouse can also claim the $6,000 exemption, but it's capped at one $6,000 exemption per surviving spouse — it doesn't double even if they receive distributions from both their own and their deceased spouse's account.
- Social Security: Arkansas mein Social Security par hamesha $0 tax lagta hai (fully exempt).
Our calculator applies these exemptions automatically based on your inputs.
REAL EXAMPLE — $60,000 SALARY IN ARKANSAS WITH MASON
Mason lives in Little Rock, Arkansas. He earns $60,000/year, is single with no dependents, contributes 5% to his 401(k), and pays $100/paycheck for health insurance. He doesn’t live in Texarkana, so he pays standard Arkansas tax.
Step 1 — Gross Pay
$60,000 ÷ 26 biweekly paychecks = $2,307.69 gross per paycheck.
Step 2 — Pre-Tax Deductions
401(k) (5%): $115.38/paycheck. Health insurance: $100/paycheck. Total: $215.38/paycheck ($5,600/year).
Step 3 — Federal Income Tax
Annual taxable gross after pre-tax deductions: $60,000 − $5,600 = $54,400
Minus 2026 federal standard deduction (single): $16,100
Federal taxable income: $38,300 2026 brackets: 10% on first $12,400 = $1,240. 12% on remaining $25,900 = $3,108.
Total federal tax: $4,348/year → $167.23/paycheck
Step 4 — Arkansas State Tax
Arkansas taxable income: $54,400 − $2,470 (standard deduction) = $51,930 0% on $5,599 = $0
2% on $5,600 = $112
3% on $4,800 = $144
3.4% on $10,400 = $354
3.7% on remaining $25,531 = $945 Subtotal: $1,555 — minus $29 personal credit = $1,526/year → $58.69/paycheck
Step 5 — Social Security and Medicare
Social Security (6.2% of gross): $143.08/paycheck
Medicare (1.45% of gross): $33.46/paycheck
Total FICA: $176.54/paycheck
Step 6 — Net Take-Home Pay
$2,307.69 − $215.38 (pre-tax) − $167.23 (federal) − $58.69 (AR state) − $176.54 (FICA) = $1,689.85 per paycheck
Where Mason’s Money Goes (per $2,307.69 paycheck)
$115.38 → 401(k) $100.00 → health insurance $167.23 → federal tax $58.69 → Arkansas state tax $176.54 → Social Security + Medicare $1,689.85 → take-home Mason keeps about 73% of his gross pay.
What If Mason Lived in Texarkana
Arkansas state tax drops to $0. Net pay increases by $58.69/paycheck — about $1,526 more per year.
What If Mason Had No 401(k) or Health Insurance
His paycheck take-home would actually go up to about $1,871/paycheck, since he’d no longer be setting aside $215.38 — but his taxable income rises too, so federal and state tax together increase by about $34/paycheck compared to before. The net effect: roughly $182 more in his pocket per paycheck, but he loses the $215.38 in retirement contributions and health coverage entirely. The trade-off isn’t about “losing money” — it’s giving up retirement savings and insurance for slightly higher take-home now.
What If Mason Increased His 401(k) to 10%
Deduction rises to $230/paycheck. Take-home drops to about $1,593/paycheck — a decrease of about $97, while an extra $114.62/paycheck goes into retirement. The tax savings cover part of the difference.
What If Mason Was Married with Two Children
Federal standard deduction rises to $32,200 (joint). With the 2026 Child Tax Credit of $2,200 per child ($4,400 total for two kids), federal tax liability drops to roughly $0. Arkansas standard deduction becomes $4,940 (joint), personal credit becomes $116 (4 people). Arkansas taxable income: $49,460. Arkansas tax: about $1,347/year → $51.81/paycheck. Net pay: roughly $1,864/paycheck — about $174 more than single Mason. This is Mason’s math. Your numbers will differ — use the calculator above to run your own salary, filing status, and dependents.
WHAT IF SCENARIOS — MARRIAGE, KIDS, 401(K) CHANGES, TEXARKANA
Mason’s baseline: single, no kids, Little Rock, 5% 401(k), $100/paycheck health insurance, $60,000 salary — net take-home $1,689.85/paycheck.
Scenario 1 — Living in Texarkana
Arkansas state tax drops to $0. Net pay: +$58.69/paycheck (about $1,526/year).
Scenario 2 — No 401(k) or Health Insurance
Taxable income rises, so federal and state tax both increase — but not by nearly as much as the $215.38/paycheck he stops contributing. Cash in his pocket rises by about +$182/paycheck, but he gives up $215.38/paycheck in retirement savings and insurance coverage entirely. This isn’t free money — it’s a trade-off between today’s cash and tomorrow’s savings/coverage.
Scenario 3 — Increasing 401(k) to 10%
Deduction rises to $230.77/paycheck. Net take-home: −$97/paycheck. Tax savings from the higher deduction cover about $18 of that $115 increase — the rest is real money going into retirement.
Scenario 4 — Decreasing 401(k) to 0%
Symmetric to Scenario 3: take-home rises by about +$97/paycheck, but he loses $115.38/paycheck in retirement contributions.
Scenario 5 — Married Filing Jointly, No Children same $60k household income
Federal standard deduction: $32,200. Arkansas standard deduction: $4,940, personal credit: $58 (2 people).
Net pay: +$79/paycheck compared to single Mason.
Scenario 6 — Married with Two Children
Federal Child Tax Credit ($2,200 × 2 = $4,400) wipes out most of the federal tax liability. Arkansas standard deduction $4,940, personal credit $116 (4 people).
Net pay: +$174/paycheck compared to single Mason.
Scenario 7 — Single with One Child
Federal CTC of $2,200 applies; Arkansas standard deduction stays at $2,470 (unchanged by dependents), personal credit rises to $58.
Net pay: +$86/paycheck compared to single Mason with no children.
Scenario 8 — Earning $40,000 Instead of $60,000
Same 5% 401(k) and $100/paycheck health insurance.
Net pay: $1,132.66/paycheck — about $557 less than $60k Mason.
Scenario 9 — Earning $80,000 Instead of $60,000
At this income, part of Mason’s federal taxable income crosses into the 22% bracket (which starts at $50,400 for single filers in 2026).
Net pay: $2,220.50/paycheck — about $531 more than $60k Mason.
Scenario 10 — Head of Household (with one dependent)
Federal standard deduction: $24,150. Plus the $2,200 Child Tax Credit. Arkansas standard deduction stays $2,470, personal credit $58.
Net pay: +$123/paycheck compared to single Mason.
Scenario 11 — Working Part-Time (20 Hours/Week) at Equivalent Pay
Same $60,000 annual total, same taxes. Your tax bill depends on total annual income, not how many hours you work to earn it.
Scenario 12 — Self-Employed
Self-employed workers pay both the employee and employer share of Social Security and Medicare — 15.3% instead of 7.65%. On $60,000 net earnings, that’s roughly $4,590 more per year in self-employment tax (the exact calculation applies to 92.35% of net earnings, so the real figure is close to this estimate but not exact). This calculator is built for W-2 employees — self-employed filers should use a dedicated self-employment tax tool or a tax professional.
Summary — How Different Factors Affect Take-Home Pay
| Change | Effect on Net Pay |
| Live in Texarkana (vs Little Rock) | +$59/paycheck |
| No 401(k) or health insurance | +$182/paycheck (loses $215 in savings/coverage) |
| Increase 401(k) to 10% | −$97/paycheck (+$115 into retirement) |
| Married, no children | +$79/paycheck |
| Married, two children | +$174/paycheck |
| Single, one child | +$86/paycheck |
| Head of household, one child | +$123/paycheck |
| Salary $40,000 (instead of $60k) | −$557/paycheck |
| Salary $80,000 (instead of $60k) | +$531/paycheck |
Enter your own numbers in the calculator above to see your exact take-home pay.
FREQUENTLY ASKED QUESTIONS (FAQ) — ARKANSAS PAYCHECK CALCULATOR
Here are the most common questions users ask about Arkansas paycheck calculations. If you have a question, chances are it is answered below.
Arkansas uses a progressive system with five brackets: 0% on the first $5,599 of taxable income, 2% up to $11,199, 3% up to $15,999, 3.4% up to $26,399, and 3.7% above that. The top rate was cut from 3.9% to 3.7% in a May 2026 special session, retroactive to January 1, 2026. High earners with net income over $94,700 use a separate two-tier table.
Yes — $2,470 per taxpayer for 2026, regardless of filing status. A married couple can claim $4,940 combined if both spouses qualify. It's one of the lowest standard deductions in the country, but Arkansas pairs it with a personal tax credit most states don't offer.
Yes — $29 per person in your household, applied as a direct tax credit (not a deduction from income). That's $29 for yourself, another $29 for your spouse if married jointly, and $29 for each dependent.
Residents of Texarkana, Arkansas pay zero Arkansas state tax on their earned income, regardless of where they work. Residents of Texarkana, Texas are also exempt, but only on income earned from working in Texarkana, Arkansas specifically. You claim it using Form AR4EC(TX) with your employer and Form AR1000ADJ on your return.
No. Arkansas has no city or county income taxes — only the state's own progressive tax applies, no matter where in Arkansas you live or work.
$11.00 per hour for most employees, unchanged since 2021. Tipped employees have a minimum cash wage of $2.63/hour, with employers required to make up the difference if tips don't bring total pay to $11.00/hour.
No. Arkansas is one of the majority of states without a State Disability Insurance tax — unlike California (1.3% in 2026), New Jersey, New York, Hawaii, or Rhode Island.
No. Arkansas fully exempts Social Security benefits from state income tax, regardless of amount. Only 8 states still tax Social Security in some form as of 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont.
Non-exempt employees must be paid 1.5× their regular rate for hours worked over 40 in a workweek. Arkansas doesn't have a daily overtime requirement — only the weekly 40-hour threshold applies, matching federal FLSA rules.
Start with your gross income, subtract pre-tax deductions (401(k), health insurance) and the $2,470 standard deduction to get your Arkansas taxable income. Apply the progressive brackets (0% to 3.7%) to that amount, then subtract $29 per household member as a final credit against the tax owed.
Use Form AR4EC to tell your employer your filing status and number of exemptions, so they withhold the correct amount. If you live in Texarkana and qualify for that exemption, use Form AR4EC(TX) instead so your employer stops Arkansas withholding entirely.
