Arkansas Paycheck Calculator & Income Tax Rates (2026)

Arkansas applies 3 rates to taxable income — that is, income after the state standard deduction or exemption. Only the slice of income inside each band is taxed at that band's rate.

Arkansas's effective state rate climbs with income as more of your salary lands in higher bands. The last column shows the state rate on your next dollar at each level.

Arkansas's joint brackets are the same as single brackets, so the marriage effect here comes from the deduction and the federal side. On $100,000 a joint return keeps $81,079 versus $75,400 for a single filer.

Arkansas has cut its top individual income tax rate five times since 2021, from 5.9% to 3.9%, the last reduction coming in a June 2024 special session and applying retroactively to that year. The 3.9% top rate remains in place for tax year 2026. The state's brackets are among the most idiosyncratic in the country: instead of one schedule, Arkansas uses three separate rate tables keyed to total net income — a low-income table that exempts the first several thousand dollars entirely, a middle table, and a high-income table for filers above roughly $90,000 — plus a 'bracket adjustment' that smooths the jump between tables. Within the high-income table, the middle 4% rate is actually higher than the 3.9% top rate, a quirk left over from cutting the top rate faster than the rest. Combined with a 6.5% state sales tax that ranks among the nation's highest once local rates are added, Arkansas has shifted its revenue mix decisively toward consumption.

Arkansas has a small standard deduction — roughly $2,300–$2,500 for single filers and double that for joint filers, indexed annually — and uses personal tax credits of about $29 per person instead of exemptions. Filers can itemize on the state return regardless of their federal choice. The low-income tax table is designed so that filers near the poverty line owe little or nothing. There is no state earned income credit; the main credit covers child and dependent care.

Arkansas has no local income taxes. No city, county or school district in the state taxes wages or earnings, and Arkansas law does not authorize them to. Local governments fund themselves through sales taxes — the reason combined rates in some cities pass 10% — and through property taxes.

The state sales tax is 6.5%, and with county and city add-ons the average combined rate is about 9.4% — the third-highest in the country behind Louisiana and Tennessee, with some cities passing 10%. The state's residual 0.125% grocery rate was eliminated effective January 1, 2026, though local sales taxes still apply to food. Prescription drugs are exempt; used cars under $4,000 are also exempt.

Arkansas property taxes are low, around 0.6% of market value on average. Amendment 79 caps annual increases in a homestead's assessed value at 5% (10% for other property) and freezes assessed value outright for homeowners 65 and older or disabled. Every homeowner also receives a homestead credit of up to $500 against the property tax bill, raised in steps from $350 to $500 between 2019 and 2024. A $250,000 home typically owes $1,000–$1,500 after the credit.

Arkansas exempts Social Security in full. Each taxpayer can exclude the first $6,000 of income from employer-sponsored pensions, IRAs, 401(k)s and other qualified plans — a couple with two retirement income streams can exclude $12,000 combined. Amounts above that are taxed under the regular tables at rates topping out at 3.9%. Military retirement pay and survivor benefits have been fully exempt since tax year 2018, regardless of age. Arkansas state and local government retirees get the same $6,000 exclusion as private-sector retirees. With the low top rate and the exclusion, a retiree with $50,000 of pension and IRA income owes roughly $1,000–$1,500 in state tax.

High earners have seen the biggest change: a $250,000 household paid 5.9% in 2021 and pays 3.9% in 2026, a swing worth roughly $5,000 a year. Military retirees pay nothing on their pensions. Arkansas brackets do not widen for joint filers, but couples can file separately on the same return, splitting income so each spouse runs through the low brackets. Lower-income households benefit least — the low-income table already exempted them, and they bear the 9–10% combined sales tax. Remote workers earning out-of-state salaries pair a 3.9% top rate with a cost of living 14% below average.

The median household income in Arkansas is $48,000, which is $39,051 a year ($3,254 a month) after all taxes. That is below the national median, though Arkansas's low cost of living stretches each dollar further than the raw figure suggests. After adjusting for cost of living, the purchasing power of that take-home is equivalent to $45,408 in an average-cost area.

Arkansas ranks #22 of 50 for raw take-home pay and #4 for cost-adjusted purchasing power at $100,000. The 18-place gap between the two reflects a below-average cost of living that boosts real purchasing power. The best state (Alaska) leaves $79,125; the worst (Oregon) leaves $70,932. Arkansas is $3,725 behind the leader.

Arkansas Tax Questions, Answered

Compare Arkansas with Other South States

Specific Salaries in Arkansas