Arkansas charges 2-3.9% state income tax. Use the w-4 withholding calculator pre-loaded with Arkansas rates.
Open W-4 Withholding Calculator →Getting your W-4 right in Arkansas is important because you need to coordinate federal withholding with Arkansas's graduated (2-3.9%) state withholding. If your W-4 is set too conservatively, you lend the government an interest-free loan; too aggressively, and you face an underpayment penalty. This calculator helps you dial in the right federal withholding amount given your Arkansas state tax situation.
Arkansas uses a graduated income tax with brackets ranging from 2-3.9%. Lower income is taxed at lower rates, with the 3.9% top rate applying only to income in the highest bracket. This progressive structure means your effective state tax rate is always lower than the top marginal rate. Arkansas does not have local income taxes, so the state graduated rate is the total state-level income tax burden.
The table below shows what you actually keep at five salary levels in Arkansas, accounting for federal tax, FICA, and Arkansas's graduated (2-3.9%) state tax.
See how Arkansas compares to other South states. Each link takes you to the w-4 withholding calculator landing page for that state.
For a comprehensive breakdown of Arkansas’s tax structure, salary comparisons, cost-of-living analysis, and more, visit the full Arkansas take-home pay page.