Does Arkansas have a state income tax?

Yes. Arkansas imposes a progressive state income tax with three brackets ranging from 2% on the first $4,400 of taxable income to 3.9% on income above $8,800. Arkansas has aggressively reduced its top marginal rate in recent years, dropping from 6.9% in 2019 to 3.9% in 2024, and the legislature has signaled willingness to cut further as state revenues allow. Arkansas state tax is calculated using the state's own modest standard deduction ($2,340 single, $4,680 married) rather than the federal amounts, so taxable income is calculated separately from your federal return.

How much does a $22/hour worker take home in Arkansas?

At $22/hour working 40 hours per week, filing single, your gross annual pay is $45,760. After federal income tax of approximately $3,338, Arkansas state income tax of about $1,500, Social Security of $2,837, and Medicare of $663, your annual take-home pay is approximately $37,422, or about $1,439 per biweekly paycheck. Compared to a same-wage worker in Tennessee (no income tax), this Arkansas worker takes home about $1,500 less annually. Compared to Louisiana (top rate 4.25%) the take-home difference is modest, only about $100-200.

What is the Arkansas minimum wage in 2026?

Arkansas minimum wage is $11.00 per hour, having been at this level since 2021 under the voter-approved Issue 5 (2018). Unlike Arizona or Florida, Arkansas does not annually adjust the minimum wage for inflation, so the rate is fixed until the legislature or voters approve a new increase. Tipped employees may be paid as little as $2.63 per hour as long as tips bring total compensation to at least $11.00 per hour. The state minimum applies statewide; Arkansas does not allow cities to set higher local minimums under a 2017 preemption law.

What are Arkansas state income tax brackets in 2026?

Arkansas uses three brackets: 2% on the first $4,400 of taxable income, 3% from $4,400 to $8,800, and 3.9% on income above $8,800 — for single filers. Married filing jointly uses the same brackets but allows each spouse to apply the brackets to their own income separately, which is more favorable than doubling thresholds. The state has cut the top rate every year since 2019 (from 6.9% to 5.9% to 4.9% to 4.7% to 4.4% to 3.9%), making Arkansas one of the most aggressive states for personal income tax reduction in recent memory.

How does Arkansas compare to neighboring states for income tax?

Arkansas's 3.9% top rate is now competitive with most neighbors. Tennessee and Mississippi (which phased out income tax on wages) are zero. Louisiana has progressive rates from 1.85% to 4.25%, slightly higher than Arkansas at the top. Missouri uses graduated rates from 2% to 4.95%, higher overall. Oklahoma has progressive rates from 0.25% to 4.75%, similar to Arkansas at low incomes but higher at the top. For a $60,000 worker, Arkansas state tax is roughly $1,950 versus $2,500 in Oklahoma, $2,800 in Missouri, and $0 in Tennessee.

Does Arkansas tax Social Security or retirement income?

No. Arkansas does not tax Social Security benefits at the state level. The state also exempts the first $6,000 of distributions from private pensions, military retirement, and most public pensions. Beyond the $6,000 exemption, retirement income is taxed at the standard progressive rates. Combined with a low cost of living and moderate property taxes, this makes Arkansas reasonably retiree-friendly, although Tennessee and Mississippi to the east are more tax-favorable for retirees with significant retirement income.

Do Arkansas cities charge local income taxes?

No. Arkansas does not authorize cities, counties, or other local jurisdictions to impose an income tax on wages. This is favorable compared to states like Ohio, Pennsylvania, or Kentucky where local income taxes add 1-3% to the total burden. Arkansas does allow local sales taxes on top of the state's 6.5% sales tax, with combined rates reaching 11.5% in some jurisdictions, but these consumption taxes do not affect your paycheck calculation.

Arkansas Paycheck Calculator (Hourly) — Free Take-Home Pay Estimator

How the Arkansas Paycheck Calculator Works

This Arkansas paycheck calculator hourly tool computes your take-home pay by subtracting federal income tax, Arkansas progressive state income tax, and FICA (Social Security + Medicare) from your gross earnings. Arkansas uses a three-bracket progressive system topping at 3.9%, with the brackets reaching their top rate at just $8,800 of taxable income.

The core formula:

Take-Home = Gross Pay - Federal Tax - Arkansas Tax - Social Security - Medicare

P_{net} = P_{gross} - T_{fed} - T_{AR} - T_{SS} - T_{Med}

Annual gross is hourly wage multiplied by hours per week multiplied by 52. Use our salary calculator to convert between hourly and annual figures. Per-period pay divides annual gross by 52, 26, 24, or 12.

Federal income tax uses progressive brackets from 10% to 37%, with standard deductions of $15,000 single, $30,000 married, $22,500 HoH. Arkansas applies its own standard deduction ($2,340 single, $4,680 married, $2,340 HoH) and then its three brackets: 2% on the first $4,400, 3% from $4,400 to $8,800, and 3.9% above $8,800. Social Security is 6.2% up to $176,100; Medicare is 1.45% on all wages with no cap plus 0.9% surtax above $200,000 single or $250,000 married.

Arkansas Hourly Paycheck Tax Breakdown

Arkansas has aggressively cut its state income tax over the past several years. The top marginal rate has fallen from 6.9% in 2019 to 5.9% (2021), 4.9% (2022), 4.7% (2023), 4.4% (early 2024), and now 3.9% (mid-2024 onward). Each cut has come through targeted legislation passed during special or regular sessions, with the legislature using state budget surpluses to fund the reductions. Governor Sarah Huckabee Sanders has indicated continued interest in further cuts toward eventual elimination, though no concrete schedule has been adopted.

Among Arkansas's six neighbors, the tax landscape is varied. Tennessee phased out its tax on interest and dividends and has no income tax on wages — a clear advantage over Arkansas for high earners. Mississippi is gradually phasing toward zero, currently using a graduated 0-5% structure that is similar to Arkansas in effective burden. Louisiana imposes progressive rates from 1.85% to 4.25%, slightly higher than Arkansas at the top. Missouri uses graduated rates from 2% to 4.95%, more progressive than Arkansas. Oklahoma has six brackets from 0.25% to 4.75%, similar to Arkansas for middle earners. Texas charges zero state income tax — the most favorable neighbor for take-home pay. For a worker earning $50,000, Arkansas state tax is approximately $1,700 versus $2,100 in Oklahoma, $2,300 in Missouri, $2,000 in Louisiana, and $0 in Tennessee or Texas.

One quirk of Arkansas tax is the relatively modest standard deduction ($2,340 single, $4,680 married). This is far below the federal standard deduction and means even low-income workers face state tax on most of their income. A worker earning $20,000 has only $2,340 sheltered from Arkansas tax, leaving $17,660 taxable — most of it at the 3.9% top rate. The combination of low brackets that quickly hit the top rate, plus a low standard deduction, means Arkansas's state tax functions almost like a flat 3.9% for most workers, despite the technically progressive structure.

Your Arkansas paycheck deductions come from four sources:

Federal income tax: Progressive brackets from 10% to 37% based on taxable income. See our income tax calculator for full-year estimates.
Arkansas state income tax: Progressive 2%/3%/3.9% with thresholds at $4,400 and $8,800. Standard deduction is $2,340 single, $4,680 married.
Social Security: 6.2% on wages up to $176,100 annually.
Medicare: 1.45% on all wages, plus 0.9% surtax above $200,000 single or $250,000 married.

Variable Definitions

Hourly Wage: Your gross pay per hour. Arkansas minimum wage is $11.00/hour as of 2026. A poultry processing worker at Tyson Foods in Springdale or Pilgrim's Pride in Pine Bluff typically earns $15-19/hour. A Walmart corporate associate in Bentonville earns $25-40/hour at mid-level positions, while senior Walmart and Sam's Club merchant roles commonly pay $50-80/hour. The University of Arkansas for Medical Sciences (UAMS) in Little Rock pays registered nurses $35-45/hour with shift differentials.

Hours per Week: Total regular hours. Full-time is 40. A poultry plant worker in Northwest Arkansas might log 45 hours per week including overtime. A Little Rock truck driver running regional routes for J.B. Hunt could log 50+ hours. Overtime above 40 is paid at 1.5x federal minimum.

Pay Frequency: Weekly (52), biweekly (26), semi-monthly (24), or monthly (12). Walmart and Tyson Foods, the state's two largest private employers, both use biweekly pay. Arkansas state government employees are paid semi-monthly.

Filing Status: Determines your federal and Arkansas standard deductions and bracket thresholds. A single filer Walmart corporate analyst in Bentonville earning $75,000 has a federal standard deduction of $15,000 and an Arkansas deduction of $2,340. A married couple — one a UAMS Little Rock nurse, the other a Riceland Foods agronomist in Stuttgart — uses the $30,000 federal married deduction and $4,680 Arkansas married deduction.

Pre-Tax Deduction: Percentage of gross pay contributed to 401(k), 403(b), or HSA. A Tyson Foods plant manager earning $85,000 who contributes 7% ($5,950) reduces both federal and Arkansas taxable income, saving approximately $1,309 federally (22%) and $232 in Arkansas (3.9%), for combined annual tax savings of $1,541.

Worked Example 1: Arkansas Hourly Paycheck at $17/Hour

A single filer earning $17/hour, working 40 hours/week, biweekly pay, with a 4% pre-tax 401(k) contribution:

Annual gross: $17 x 40 x 52 = $35,360
Pre-tax deduction: $35,360 x 4% = $1,414.40
Taxable gross: $35,360 - $1,414.40 = $33,945.60
Federal taxable income: $33,945.60 - $15,000 (standard deduction) = $18,945.60
Federal tax: ($11,925 x 10%) + ($7,020.60 x 12%) = $1,192.50 + $842.47 = $2,034.97
Arkansas taxable income: $33,945.60 - $2,340 (AR standard deduction) = $31,605.60
Arkansas state tax: ($4,400 x 2%) + ($4,400 x 3%) + ($22,805.60 x 3.9%) = $88 + $132 + $889.42 = $1,109.42
Social Security: $33,945.60 x 6.2% = $2,104.63
Medicare: $33,945.60 x 1.45% = $492.21
Total deductions: $1,414.40 + $2,034.97 + $1,109.42 + $2,104.63 + $492.21 = $7,155.63
Annual take-home: $35,360 - $7,155.63 = $28,204.37
Biweekly take-home: $28,204.37 / 26 = $1,084.78

Worked Example 2: Arkansas Hourly Paycheck at $45/Hour

A married filing jointly filer earning $45/hour, working 40 hours/week, biweekly pay, with a 9% pre-tax 401(k) contribution:

Annual gross: $45 x 40 x 52 = $93,600
Pre-tax deduction: $93,600 x 9% = $8,424
Taxable gross: $93,600 - $8,424 = $85,176
Federal taxable income: $85,176 - $30,000 (married standard deduction) = $55,176
Federal tax: ($23,850 x 10%) + ($31,326 x 12%) = $2,385 + $3,759.12 = $6,144.12
Arkansas taxable income: $85,176 - $4,680 (AR married standard deduction) = $80,496
Arkansas state tax: ($4,400 x 2%) + ($4,400 x 3%) + ($71,696 x 3.9%) = $88 + $132 + $2,796.14 = $3,016.14
Social Security: $85,176 x 6.2% = $5,280.91
Medicare: $85,176 x 1.45% = $1,235.05
Total deductions: $8,424 + $6,144.12 + $3,016.14 + $5,280.91 + $1,235.05 = $24,100.22
Annual take-home: $93,600 - $24,100.22 = $69,499.78
Biweekly take-home: $69,499.78 / 26 = $2,673.07

This Bentonville Walmart corporate household takes home roughly 74.3% of gross.

Edge Cases and Advanced Scenarios

Social Security wage base cap ($176,100 in 2026): Wages above $176,100 stop incurring Social Security tax for the remainder of the year. A Little Rock orthopedic surgeon earning $400,000 pays Social Security tax capped at $176,100 x 6.2% = $10,918.20.

Additional Medicare 0.9% surtax for high earners: Wages above $200,000 single or $250,000 married incur an extra 0.9% surtax. A senior Walmart vice president earning $350,000 single owes ($350,000 - $200,000) x 0.9% = $1,350 in additional Medicare tax.

Arkansas low-income tax tables: Arkansas provides a special tax table for taxpayers with income below approximately $25,000 that uses lower effective rates than the standard brackets. A single filer with $20,000 of Arkansas taxable income may owe substantially less than the standard bracket calculation suggests because the low-income table phases in the regular rates gradually. This calculator uses the standard bracket math and may slightly overstate tax for very low earners; check the official Arkansas Form AR1000F Low Income Tax Table for actual liability.

What to Do with Your Arkansas Paycheck Result

Compare your calculated take-home pay to your actual pay stub. Differences usually come from health insurance premiums, dental/vision coverage, or supplemental benefits not captured in this calculator.
Maximize pre-tax 401(k) contributions. Each dollar contributed saves your federal marginal rate plus 3.9% in Arkansas state tax — modest but meaningful over a career.
Watch for additional Arkansas rate cuts. The legislature has cut the top rate every year since 2019, so withholding tables may lag behind statutory changes. Check your withholding rate each January.
If you qualify, claim the Arkansas low-income tax table on your annual return rather than the standard brackets. This can reduce tax liability by several hundred dollars for workers earning below $25,000.
Use our federal income tax percentage calculator to see your effective federal rate. Combined with your Arkansas effective rate, this gives you a full picture of your total tax burden.

Related Calculators

Alabama Paycheck Calculator (Hourly) — Alabama's 5% top rate vs Arkansas's 3.9%.
Kansas Paycheck Calculator (Hourly) — Kansas's 5.2-5.58% progressive system is significantly higher than Arkansas.
Texas Paycheck Calculator (Hourly) — Texas has no income tax; compare to your Arkansas take-home.
Salary Calculator — convert between hourly and annual pay.
Income Tax Calculator — estimate your total federal income tax liability.
Federal Income Tax Percentage Calculator — find your effective federal tax rate.
Paycheck Calculator by State — compare take-home pay across all 50 states and DC.

Arkansas Paycheck Calculator (Hourly)