Tax & Paycheck Calculators
Arkansas Paycheck Tax Calculator
Arkansas just cut its top tax rate to 3.7% in a May 2026 special session — retroactive to January 1. This calculator uses the new rate, not the outdated 3.9%.
Calculate your Arkansas take-home pay
Federal, FICA, and Arkansas's new post-reform bracket structure.
Arkansas has no local city income taxes. Approximates Arkansas taxable income using federal taxable income as the starting point; Arkansas uses its own deduction and exemption rules that may differ slightly.
A rate cut that just happened, retroactively
Arkansas's unusual two-table system
Most states with graduated brackets simply add higher rates on top as your income rises. Arkansas does something different: it uses two entirely separate rate tables depending on your total taxable income, and crossing the threshold switches which table applies to your entire income calculation — not just the portion above the line.
| Taxable income | Bracket | Rate |
|---|---|---|
| $94,700 or less | $0 – $5,599 | 0% |
| $5,600 – $11,199 | 2% | |
| $11,200 – $15,999 | 3% | |
| $16,000 – $26,399 | 3.4% | |
| $26,400 – $94,700 | 3.7% | |
| Above $94,700 | $0 – $4,700 | 2% |
| Above $4,700 | 3.7% |
The practical effect: taxpayers above $94,700 use the simpler two-tier table (2% on the first $4,700, 3.7% above), which is structured to keep their effective rate close to — but not identical to — what the standard schedule would produce. This dual-table approach is a genuine Arkansas quirk that can create a small "notch" right at the threshold, where the exact table used for your entire income depends on which side of $94,700 you land on.
The $29 exemption credit
Arkansas applies a flat $29 tax credit per exemption claimed — one for yourself, one for a spouse if filing jointly, and one per dependent — subtracted directly from your calculated tax rather than from your taxable income. It's a modest credit, but it does slightly reduce the final bill for every filer.
What else Arkansas doesn't tax
- Social Security benefits are fully exempt from Arkansas income tax.
- Military retirement pay is fully exempt.
- Long-term capital gains (assets held over one year) get a 50% exclusion — only half the gain is taxable.
Arkansas's May 2026 rate cut (HB 1001 / SB 1, retroactive to January 1, 2026) verified against Tax Foundation's direct coverage and Thomson Reuters Tax's detailed bracket breakdown, both independently confirming the same structure. This is a planning estimate — confirm your specific taxable income calculation with the Arkansas Department of Finance and Administration.
Frequently asked questions
Before you estimate your Arkansas paycheck.
What is Arkansas's top income tax rate for 2026?
3.7%, following a special legislative session in May 2026 (HB 1001 / SB 1) that cut the rate retroactive to January 1, 2026 — down from the previous 3.9% top rate.
Why does Arkansas use two different bracket tables?
Taxpayers with income at or below $94,700 use a standard five-tier schedule from 0% to 3.7%. Above that threshold, a separate, simpler two-tier table applies to the entire calculation instead — a distinctive Arkansas mechanic most other states don't use.
Does Arkansas tax Social Security or military retirement?
No. Both Social Security benefits and military retirement pay are fully exempt from Arkansas state income tax.
How are capital gains taxed in Arkansas?
Assets held longer than one year get a 50% exclusion, meaning only half the gain is subject to Arkansas's regular income tax rates. Assets held one year or less are taxed on the full gain.
Does Arkansas have local city income taxes?
No. Arkansas has no city or local income taxes — the state-level rate is the only income tax layer, though the state's combined sales tax rate is among the highest in the country.