📋 Pay & Filing Details
Your pay before any deductions
Enter gross pay amount.
Each exemption reduces annual AR tax by $29
Reduces federal and AR taxable income
Enter 401k amount (0 if none).
Section 125 cafeteria plan premiums
Enter health insurance amount (0 if none).
Used to check Social Security wage cap ($184,500)
Enter YTD gross (0 if first paycheck).
Additional withholding requested on W-4
Enter extra withholding (0 if none).
Estimated Net Take-Home Pay
$0.00
per paycheck
Annual Net Pay
—
Total Fed Tax
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AR State Tax
—
FICA (SS+Med)
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📊 Per-Paycheck Breakdown
Gross Pay
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Pre-Tax 401(k)/403(b)
—
Pre-Tax Health Insurance
—
Federal Income Tax
—
Arkansas State Income Tax
—
Social Security (6.2%)
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Medicare (1.45%)
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Additional Medicare (0.9%)
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Extra Fed Withholding
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➔ Estimated Net Pay (Take-Home)
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⚠️ Estimate only. Actual withholding depends on your complete W-4, AR4EC, year-to-date earnings, and employer-specific deductions. No local income taxes in Arkansas. Consult your HR department or a tax professional for exact figures.
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Sources & Methodology
✅ All tax rates verified from official government publications. Formula mirrors the Arkansas DFA Withholding Formula (whformula_2026) and IRS Publication 15-T.
Arkansas DFA — 2026 Withholding Tax Formula (whformula_2026.pdf)
Official source for Arkansas state income tax brackets, $2,470 standard deduction, $29 per-exemption credit, and the 3.9% top marginal rate. Published by the Department of Finance and Administration (DFA) and effective January 1, 2026.
IRS Publication 15-T — Federal Income Tax Withholding Methods (2026)
Source for 2026 federal income tax withholding brackets, standard withholding amounts, and the percentage method tables. Updated annually by the IRS. SS wage base ($184,500) confirmed via IRS Notice 2025-XX and Social Security Administration announcement.
Social Security Administration — 2026 Contribution and Benefit Base ($184,500)
The 2026 Social Security wage base of $184,500 is the maximum earnings subject to the 6.2% Social Security tax. Confirmed by the SSA annual COLA announcement. Medicare tax of 1.45% applies to all wages with no cap; the additional 0.9% surtax applies above $200,000 (single) or $250,000 (MFJ) per IRS rules.
Calculation Steps (mirrors AR DFA whformula_2026):
1. Annualize gross pay: gross × pay periods per year
2. Subtract pre-tax deductions (401k + health) to get federal taxable wages
3. Apply federal 2026 brackets and OBBBA standard deduction to compute federal withholding
4. For Arkansas: subtract $2,470 state standard deduction from annualized gross minus pre-tax deductions
5. Apply AR graduated brackets (0%/2%/3%/3.4%/3.9%) to net taxable income
6. Subtract $29 × exemptions claimed on AR4EC = Annual Net AR Tax
7. Compute FICA: SS = 6.2% (up to $184,500 cap, checking YTD); Medicare = 1.45% (no cap)
8. Divide all annual amounts by pay periods to get per-paycheck deductions
9. Net Pay = Gross − All Deductions − All Taxes
1. Annualize gross pay: gross × pay periods per year
2. Subtract pre-tax deductions (401k + health) to get federal taxable wages
3. Apply federal 2026 brackets and OBBBA standard deduction to compute federal withholding
4. For Arkansas: subtract $2,470 state standard deduction from annualized gross minus pre-tax deductions
5. Apply AR graduated brackets (0%/2%/3%/3.4%/3.9%) to net taxable income
6. Subtract $29 × exemptions claimed on AR4EC = Annual Net AR Tax
7. Compute FICA: SS = 6.2% (up to $184,500 cap, checking YTD); Medicare = 1.45% (no cap)
8. Divide all annual amounts by pay periods to get per-paycheck deductions
9. Net Pay = Gross − All Deductions − All Taxes
Arkansas Paycheck & Take-Home Pay Guide 2026
Understanding your Arkansas paycheck means knowing which taxes are withheld and how the state's progressive income tax system works. Arkansas is one of the most affordable states in the nation for income taxes, with a top marginal rate of just 3.9% — reduced from 5.5% just four years ago. Combined with no local income taxes anywhere in the state, Arkansas workers keep more of every dollar they earn compared to higher-tax states like California or New York.
How Arkansas State Income Tax Is Calculated
Arkansas uses a graduated income tax system applied to your net taxable income — your gross pay minus the state standard deduction of $2,470 for 2026 (increased from $2,410 in 2025). The brackets below show the rate applied to each "slice" of your income — only the portion of income falling within each bracket is taxed at that bracket's rate:
AR Net Taxable Income = Gross Pay − Pre-Tax Deductions − $2,470 (State Standard Deduction)
AR Annual Tax = Sum of (each bracket amount × bracket rate) − ($29 × Exemptions)
Source: Arkansas DFA whformula_2026.pdf (effective Jan 1, 2026)
Each exemption on Form AR4EC reduces annual Arkansas withholding by exactly $29.00.
Example: $55,000 gross − $2,470 = $52,530 net taxable. Brackets: $5,099 @ 0% + $5,200 @ 2% ($104) + $4,000 @ 3% ($120) + $1,800 @ 3.4% ($61) + $36,431 @ 3.9% ($1,421) = $1,706 − $29 (1 exemption) = $1,677 annual AR tax.
Each exemption on Form AR4EC reduces annual Arkansas withholding by exactly $29.00.
Example: $55,000 gross − $2,470 = $52,530 net taxable. Brackets: $5,099 @ 0% + $5,200 @ 2% ($104) + $4,000 @ 3% ($120) + $1,800 @ 3.4% ($61) + $36,431 @ 3.9% ($1,421) = $1,706 − $29 (1 exemption) = $1,677 annual AR tax.
2026 Arkansas Income Tax Brackets & Reference Table
These brackets apply to net taxable income (after the $2,470 standard deduction) for all filing statuses. Arkansas does not have separate bracket schedules by filing status like some other states:
| Net Taxable Income | Tax Rate | Tax on This Bracket | Cumulative Max Tax |
|---|---|---|---|
| $0 – $5,099 | 0% | $0 | $0 |
| $5,100 – $10,299 | 2.0% | Up to $104 | $104 |
| $10,300 – $14,299 | 3.0% | Up to $120 | $224 |
| $14,300 – $16,099 | 3.4% | Up to $61 | $285 |
| $16,100 – $92,300 | 3.9% | Up to $2,971 | $3,256 |
| Over $92,300 | 3.9%* | Phase-out applies | — |
*Above $92,300, Arkansas applies a graduated phase-out mechanism per Ark. Code Ann. §26-51-201. Each exemption on Form AR4EC reduces annual tax by $29. Updated brackets per DFA 2026 withholding formula; indexed annually for inflation.
💡 Key Fact: Arkansas has no local income tax anywhere in the state. Workers in Little Rock, Fayetteville, Fort Smith, Jonesboro, Conway, and Springdale all pay the same state rate with no additional city or county withholding. This contrasts sharply with states like Kentucky, Ohio, and Pennsylvania where city taxes of 1-3% are common.
Federal Taxes on Your Arkansas Paycheck
In addition to Arkansas state tax, your paycheck is subject to three federal taxes. Federal income tax uses 2026 progressive brackets with the OBBBA-updated standard deduction ($16,100 for single filers, $32,200 for married filing jointly). Social Security is withheld at 6.2% on all earnings up to the $184,500 wage base — after which Social Security withholding stops for the year. Medicare is 1.45% on all earnings with no cap, plus an additional 0.9% surtax on earnings over $200,000 (single) or $250,000 (married).
Pre-Tax Deductions That Reduce Your Arkansas Tax
Several employer benefit elections reduce both your federal and Arkansas state taxable income, directly increasing your take-home pay:
- Traditional 401(k) / 403(b): Contributions up to $23,500 in 2026 ($31,000 if age 50+) are pre-tax, reducing both federal and AR taxable wages
- Section 125 Cafeteria Plans: Employer health, dental, vision premiums paid pre-tax reduce both federal and state withholding
- Health Savings Account (HSA): Payroll contributions to an HSA reduce federal and AR taxable income (2026 limits: $4,300 individual / $8,550 family)
- Flexible Spending Accounts (FSA): Health and dependent care FSA contributions are excluded from federal and state taxable wages
Arkansas Take-Home Pay Examples
| Annual Salary | AR State Tax (est.) | Federal Tax (est.) | FICA (est.) | Annual Take-Home |
|---|---|---|---|---|
| $30,000 | $643 | $1,638 | $2,295 | ~$25,424 |
| $45,000 | $1,252 | $3,538 | $3,443 | ~$36,767 |
| $65,000 | $2,180 | $7,138 | $4,973 | ~$50,709 |
| $85,000 | $3,002 | $11,438 | $6,503 | ~$64,057 |
| $100,000 | $3,588 | $15,038 | $7,650 | ~$73,724 |
Estimates assume single filing status, 1 AR exemption, standard deductions, bi-weekly pay frequency. Actual figures vary based on your W-4 and AR4EC elections.
Frequently Asked Questions
Arkansas uses graduated brackets with a top rate of 3.9% for 2026. After subtracting the $2,470 state standard deduction, income is taxed at: 0% on the first $5,099; 2% on $5,100–$10,299; 3% on $10,300–$14,299; 3.4% on $14,300–$16,099; and 3.9% above $16,100. Each exemption on Form AR4EC reduces annual tax by $29.
No. There are no local or city income taxes anywhere in Arkansas. Workers in Little Rock, Fayetteville, Fort Smith, Jonesboro, Conway, and Springdale all pay identical state rates with no additional city withholding.
The Arkansas standard deduction for 2026 is $2,470 per taxpayer ($4,940 for married filing jointly). This is indexed annually for inflation by the DFA. Note: the Arkansas standard deduction is much smaller than the federal standard deduction ($16,100 single in 2026 under the OBBBA).
Each exemption claimed on Form AR4EC reduces your annual Arkansas withholding by exactly $29.00. Claim 1 for yourself, 1 for a spouse (if married filing jointly), and 1 per dependent. More exemptions = less withheld per paycheck, but you may owe tax at filing if you under-withhold.
Arkansas fully exempts Social Security benefits from state income tax. Arkansas also exempts military retirement pay completely and the first $6,000 of private pension/retirement income. The federal 6.2% Social Security payroll tax still applies to wages up to the $184,500 2026 wage base.
The 2026 Social Security wage base is $184,500. You pay 6.2% Social Security tax on all wages up to this cap (maximum $11,439/year). After your year-to-date earnings exceed $184,500, Social Security withholding stops. Medicare (1.45%) has no earnings cap.
Start with gross pay. Subtract pre-tax 401k and health insurance deductions. Apply federal tax brackets (with OBBBA standard deduction) and Arkansas brackets (with $2,470 state deduction). Subtract Social Security (6.2% up to $184,500), Medicare (1.45%), and any extra withholding. The remainder is your net take-home pay.
Yes. Traditional 401(k), Section 125 cafeteria plan health premiums, HSA payroll contributions, and FSA contributions all reduce both federal and Arkansas state taxable wages. Contributing to a 401k at work immediately reduces both your federal and Arkansas state withholding each paycheck.
Arkansas income tax brackets are indexed annually for inflation per Ark. Code Ann. §26-51-201(d)(1). The DFA publishes new withholding formulas each January. For 2026, the standard deduction increased from $2,410 to $2,470, and brackets shifted slightly. The 3.9% top rate remains unchanged from 2025.
No. Overtime is taxed at the same Arkansas graduated rates as regular pay. There is no separate overtime or bonus rate for state taxes. However, higher earnings from overtime push more income into higher brackets (potentially 3.4% or 3.9%), which slightly increases your effective Arkansas rate for the year.
Arkansas minimum wage is $11.00 per hour in 2026, set by Act 182 of 2023. At 40 hours/week, minimum wage workers earn approximately $22,880 annually before taxes — placing most of their income in the 0% and 2% AR brackets, resulting in minimal state tax.
Form AR4EC is Arkansas's withholding exemption certificate. Claim 1 exemption for yourself, add 1 for a spouse if applicable, and 1 per dependent. Each exemption reduces your annual Arkansas withholding by $29. Submit to your employer when starting a job or when your filing situation changes.
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