Arkansas Take-Home Pay Calculator

H.B. 1001 lowered the top rate from 3.9% to 3.7% for 2026, retroactive to January 1, and the Department of Finance and Administration revised its withholding formula midyear to match. For most workers the schedule now runs 0% on the first $5,599 of net taxable income, 2% up to $11,199, 3% up to $15,999, 3.4% up to $26,399, and 3.7% above that. Single and joint filers use the same thresholds.

Higher earners do not keep the full benefit of those lower bands. Once net taxable income climbs well into six figures, Arkansas switches to a high-income calculation that taxes nearly the whole amount at 3.7%, which is why the effective rate keeps creeping up toward the top rate.

The standard deduction is modest: $2,470 for a single filer and $4,940 for a married couple filing jointly, far below the federal $16,100. Arkansas has no personal exemption deduction. Each exemption you claim for yourself, a spouse, or a dependent is instead a $29 personal tax credit taken off the tax itself.

Subtract the $2,470 standard deduction from $75,000 and $72,530 is taxable in Arkansas. The first $5,599 costs nothing. The next $5,600 costs $112 at 2%, the next $4,800 costs $144 at 3%, the next $10,400 costs $354 at 3.4%, and the remaining $46,131 costs $1,707 at 3.7%. The $29 personal credit comes off the end, and Arkansas income tax is $2,287, an effective rate of 3.05%.

Federal income tax is figured separately on $58,900, what remains after the $16,100 federal standard deduction. The 10% bracket covers $12,400, the 12% bracket $38,000, and the 22% bracket the final $8,500, for $7,670. Social Security withholding is $4,650 and Medicare $1,088. Net pay is $59,305 a year, or $4,942 a month. The Arkansas $75,000 salary page has the per-paycheck version.

Notice the gap between the two taxable incomes: Arkansas taxes $72,530 of this salary while the IRS taxes $58,900. The 0% band and low brackets offset part of that small deduction, but the effective rate still rises steadily with pay: 2.07% at $30,000, 3.05% at $75,000, and 3.62% at $250,000.

Texarkana straddles the Arkansas-Texas line, and Arkansas law treats it specially. If you live inside the city limits of Texarkana, Arkansas, the income you earn is exempt from Arkansas income tax. If you live in Texarkana, Texas, and work in Texarkana, Arkansas, wages from that job are exempt too.

The exemption is narrow. It does not apply if your address is a rural route, or if you live in a town around Texarkana rather than in the city itself. Texarkana, Texas, residents still owe Arkansas tax on income from Arkansas sources outside Texarkana, Arkansas.

Employees claim the exemption on Form AR4EC(TX), not the regular certificate, and must tell the employer within seven days if their residence changes. If you would otherwise have to file, you still file an Arkansas return and attach the Form AR-TX your employer provides.

Arkansas employers set state withholding from Form AR4EC, the state's employee withholding exemption certificate, rather than the federal W-4. You list exemptions for yourself, a spouse, and dependents, and the withholding formula turns each one into the $29 credit against the year's tax. You can also ask for a flat extra amount per check.

Little Rock, Fayetteville, Bentonville, and Fort Smith levy no city income tax, and Arkansas has no state disability or paid leave deduction, so the state figures here are the whole picture. The other lines on your stub are federal tax, Social Security, and Medicare.

Arkansas has no reciprocity agreements. Memphis residents who work in West Memphis owe Arkansas tax on those wages even though Tennessee taxes none. An Arkansas resident working in Oklahoma or Missouri pays that state's tax and claims a credit on the Arkansas return for tax paid to another state.

The 2026 rate cut moved Arkansas up the table. At $75,000 a single Arkansas worker keeps $59,305, 18th among the 50 states and DC, and the state ranks 19th at $150,000. Texas and Tennessee tax no wages and leave the same worker $2,287 more. Louisiana's flat 3% leaves $423 more, and Mississippi is nearly even at $19 more. Arkansas now beats Missouri by $247 and Oklahoma by $543 at that salary.

For workers in Bentonville or Fayetteville weighing a home across the Missouri line, Arkansas now comes out $247 a year ahead at $75,000. In the Texarkana and West Memphis areas the comparison is with no-tax Texas and Tennessee. See Arkansas vs Texas and Arkansas vs Missouri for side-by-side numbers.