Arkansas employs a graduated income tax system with rates ranging from 0% to 3.9%, which can significantly impact your net income based on your earnings level. The Natural State's tax code includes various brackets and exemptions that affect your paycheck.
Arkansas Income Tax Highlights
For individuals with net income less than or equal to $89,600:
- 0% on the first $5,299 of taxable income|
- 2.0% on income between $5,300 and $10,599
- 3.0% on income between $10,600 and $15,099
- 3.4% on income between $15,100 and $24,299
- 3.9% on income between $24,300 and $89,600
For individuals with net income greater than $89,600:
- 2.0% on the first $4,500 of taxable income
- 3.9% on all taxable income over $4,501
These rates apply to residents on all sources of income and to non-residents on Arkansas-sourced income. The state also allows for certain deductions and credits that can affect your taxable income.
Arkansas Calculators & Tools
Calculate Your Take-Home Pay
Input your income details and see how much you make after taxes and deductions.
Bonus Calculators
Find out how much your bonus will be taxed.
Net-to-Gross
Find out how much your gross pay should be for a specific take-home pay.
Withholding Forms
Specialty Calculators
Dual Scenario Hourly
Compare your take home pay in different hourly scenarios.
Dual Scenario Salary
Compare your take home pay in different salary scenarios.
401k Calculator
See how increasing your 401k contributions will affect your paycheck and your retirement savings.
Tax Tip Calculator
Determine your take home from tips after taxes
Key Points to remember about the Arkansas Paycheck Structure
- Graduated tax system with relatively low rates
- No local income taxes in Arkansas
- Standard deductions available (e.g., $13,850 for single filers in 2023)
- Unique feature allowing increase in standard deduction by 31% of qualified charitable contributions
- Employers must withhold state income tax, with employees able to adjust their withholding percentage
Understanding these aspects of Arkansas's tax landscape is crucial for accurately estimating your net income and managing your finances effectively in the Natural State.
Learn more about the Payroll Process in Arkansas
Visit the Arkansas Payroll Guide page
Fun Facts
Called the "Natural State," Arkansas is famous for its mountains, forests, and hot springs. It’s home to the headquarters of Walmart and offers outdoor adventures in the Ozarks. Little Rock, its capital, has significant Civil Rights history.