Arkansas Paycheck Calculator 2026

Arkansas Income Tax Overview

Arkansas has dramatically simplified its income tax in recent years, cutting from a six-bracket system with rates up to 4.9% down to just two brackets: 2% on income up to $4,600 and 3.9% on all income above that. This reform has made Arkansas one of the more competitive Southern states for take-home pay. The top rate of 3.9% is among the lower top rates for any state with a progressive structure. No Arkansas city charges a local income tax on wages, so Little Rock, Fayetteville, Bentonville, and Jonesboro workers all face the same statewide rate. Arkansas's standard deduction of $2,470 for single filers is low, meaning more gross income is exposed to the 3.9% rate.

Here's what a single Arkansas filer keeps in 2026. On a $50,000 salary, take-home is approximately $40,399 per year ($3,367/month) after federal, FICA, and state taxes. At $80,000, take-home is approximately $61,642 ($5,137/month), with the state taking $2,936. At $100,000, you keep about $74,932 ($6,244/month), with $3,716 going to Arkansas. At $150,000, take-home is approximately $107,516 ($8,960/month), with the state taking $5,666. The low standard deduction means the effective rate is close to the full 3.9% for most earners.

Compared to neighboring Tennessee (no income tax), an Arkansas worker at $80,000 takes home approximately $2,936 less per year. Against Missouri (2% flat with the generous federal standard deduction of $16,100), Missouri suburban workers at $80,000 take home about $1,658 more than Arkansas workers. Against Louisiana (3% flat with federal tax deduction benefit), the comparison is close — Louisiana is slightly more favorable at most income levels. Against Mississippi (4% flat, similarly low deduction), Arkansas is somewhat better due to the lower 3.9% rate.

Watch out: Arkansas's $2,470 standard deduction is one of the lowest in the country, which undercuts what would otherwise be a very competitive 3.9% rate. At $80,000 gross, after the $2,470 deduction, the taxable income is $77,530 — nearly the full gross salary. Contrast that with Iowa (3.8% but $16,100 deduction), where $80,000 in taxable income is only $63,900. Arkansas's rate is slightly higher than Iowa's (3.9% vs 3.8%), but the much smaller deduction means Arkansas workers actually pay about $508 more per year at $80,000 than Iowa workers. The effective burden is higher than the headline rate comparison suggests.