Arkansas Paycheck Calculator

How to Use This Arkansas Paycheck Calculator

This Arkansas paycheck calculator estimates your 2026 net take-home pay after federal income tax, Arkansas state income tax (top rate 3.9%), Social Security, and Medicare. The state is locked to Arkansas; use the generic paycheck calculator for other states.

Enter your gross salary or hourly wage, pay frequency, filing status, and any pre-tax deductions (401(k), HSA, health insurance). Results update instantly with a full per-paycheck breakdown.

How Arkansas State Income Tax Works

Arkansas uses a two-bracket progressive system in 2026: 2% on the first $4,600 of taxable income and 3.9% on all taxable income above $4,600. For a full annual breakdown, see our Arkansas income tax calculator. Because the lower bracket covers only a small amount, most Arkansas workers with moderate or higher incomes pay close to the 3.9% top rate on the vast majority of their income.

Key Arkansas tax rules:

• Standard deduction — $2,340 single / $4,680 MFJ in 2026. Smaller than the federal standard deduction, so most Arkansas workers have more income subject to state tax than federal tax.
• 401(k) contributions are pre-tax — Arkansas honors pre-tax retirement contributions, reducing state taxable income.
• No local income taxes — Arkansas has no city or county payroll taxes.

Step-by-Step Example — $60,000 Arkansas Single Filer

1. Gross annual pay: $60,000
2. Federal taxable income: $60,000 − $16,100 standard deduction = $43,900. Federal tax: ~$5,000.
3. Arkansas taxable income: $60,000 − $2,340 standard deduction = $57,660. AR tax: 2% × $4,600 = $92; 3.9% × $53,060 = $2,069. Total: ~$2,161.
4. FICA: 7.65% on $60,000 = $4,590.
5. Net take-home: ~$48,249/year (~$1,856 biweekly).

Arkansas's Income Tax Reform — From 6.9% to 3.9%

Arkansas previously had one of the higher income tax rates in the South. A series of legislative reforms dramatically reduced the burden:

• 2020: Top rate 6.9%
• 2021: Top rate 5.9%
• 2022–2023: Top rate 4.7%
• 2024–2025: Top rate 4.4%
• 2026: Top rate 3.9% — also simplified to two brackets
• Future: Further reductions expected toward 3.5%

An Arkansas resident earning $100,000 who once owed roughly $6,500 in state tax now owes about $3,800 — a 41% reduction. These cuts have made Arkansas competitive with neighboring states for attracting workers and businesses. For a state-by-state comparison, use the income tax calculator.

FICA Taxes — Social Security and Medicare

FICA is federal and applies on every Arkansas paycheck.

• Social Security: 6.2% on wages up to $176,100 (2025) or $184,500 (2026). No further withholding once you cross the wage base for the year.
• Medicare: 1.45% on all wages with no cap. Additional 0.9% Medicare surtax on wages above $200,000 single / $250,000 MFJ.
• Employer match: your employer matches Social Security and base Medicare; the Additional Medicare surtax is employee-only.

How to Maximize Your Arkansas Take-Home Pay

• Max your 401(k) — $23,500 in 2026 ($31,000 age 50+). Arkansas recognizes 401(k) pre-tax contributions. A $20,000 contribution in the 22% federal bracket saves roughly $4,400 federal + $780 Arkansas = $5,180/year.
• Contribute to an HSA — $4,300 individual / $8,550 family in 2026. Reduces both federal and Arkansas taxable income, and avoids FICA if through payroll.
• Use a Dependent Care FSA — up to $5,000 per family in pre-tax dollars for childcare expenses.
• Update your AR-4EC withholding certificate— Arkansas's equivalent of the federal W-4. File a new one when your filing status, dependents, or pre-tax deductions change.
• Itemize if it benefits you — Arkansas allows itemized deductions if they exceed the standard deduction. Significant mortgage interest, charitable contributions, or medical expenses can reduce Arkansas taxable income further.

Tax Disclaimer

This calculator provides estimates for informational purposes only. It is not tax advice. Arkansas state tax rates are subject to annual legislative changes. Consult a qualified Arkansas-licensed CPA or tax professional for your specific situation.