How Arkansas withholds income tax in 2026
Employers that run payroll by computer use the DFA's Withholding Tax Formula Method, effective January 1, 2026. This calculator follows its steps exactly:
- Annualize the paycheck (weekly × 52, biweekly × 26, semimonthly × 24, monthly × 12).
- Subtract the $2,470 standard deduction. Arkansas uses the same amount for every filing status.
- If net taxable income is below $100,001, round it to the $50 midpoint of its $100 range (for example, $23,054 is taxed as $23,050). Above that, the exact dollar amount is used.
- Multiply by the bracket rate, subtract that bracket's adjustment, and round to whole dollars.
- Subtract $29.00 for each AR4EC exemption: 1 if you claim yourself, 2 if you claim yourself and your spouse, and 2 for head of household. Dependents add one each, which this calculator does not include.
Arkansas's formula has a feature most calculators miss. Between $94,701 and $97,800 of net taxable income, the bracket adjustment shrinks by $10 for every $100 of income, from $399.30 down to $99.30. Above $97,800 it stays at $89.30. In effect, higher earners lose most of the benefit of the lower-rate bands.
401(k) deferrals, Section 125 health premiums and FSAs, and HSA contributions all reduce Arkansas taxable wages, as they do federally.
2026 Arkansas withholding table
| Net taxable income | Rate | Minus adjustment |
|---|---|---|
| $0 – $5,599 | 0% | — |
| $5,600 – $11,199 | 2% | $111.98 |
| $11,200 – $15,999 | 3% | $223.97 |
| $16,000 – $26,399 | 3.4% | $287.97 |
| $26,400 – $94,700 | 3.9% | $419.96 |
| $94,701 – $97,800 | 3.9% | $399.30 falling by $10 per $100 band to $99.30 |
| $97,801 and over | 3.9% | $89.30 |
Source: Arkansas DFA, Withholding Tax Formula Method, Tax Year 2026. The calculator uses all 37 rows of the published table.
Minimum wage, tips, and overtime in Arkansas
Arkansas's minimum wage is $11.00 an hour. Employers may pay tipped employees a cash wage of $2.63 and take a tip credit of up to $8.37, as long as cash wage plus tips reaches the full minimum. Use the tipped wage calculator to check a shift.
The calculator has no Arkansas daily overtime rule. Overtime uses the federal standard of 1.5x pay for hours over 40 in a workweek.
Arkansas cities and counties do not levy a local income tax on wages, so no local withholding applies. The calculator does not model Arkansas's separate low-income tax rates (AR4EC line 5), extra exemptions for dependents, or additional withholding you request.
Arkansas take-home pay at common salaries
| Salary | Federal | AR state | FICA | Take-home / yr | Per biweekly check |
|---|---|---|---|---|---|
| $40,000.00 | $2,620.00 | $1,015.00 | $3,060.00 | $33,305.00 | $1,280.96 |
| $60,000.00 | $5,020.00 | $1,795.00 | $4,590.00 | $48,595.00 | $1,869.03 |
| $85,000.00 | $9,870.00 | $2,770.00 | $6,502.50 | $65,857.50 | $2,532.98 |
| $120,000.00 | $17,570.00 | $4,465.00 | $9,180.00 | $88,785.00 | $3,414.81 |
Single filer, paid biweekly, no pre-tax deductions, 2026 rules. Computed by the same engine as the calculator above.
Arkansas paycheck FAQs
- What is the Arkansas income tax withholding rate in 2026?
- Arkansas withholds at 2%, 3%, 3.4%, 3.9% depending on net taxable income. Income under $5,600 after the $2,470 standard deduction has no withholding, and the 3.9% rate starts at $26,400.
- How much is taken out of a $75,000 salary in Arkansas?
- For a single filer paid biweekly with no pre-tax deductions: federal income tax $7,670.00, Arkansas income tax $2,380.00, Social Security $4,650.00, and Medicare $1,087.50. That leaves $59,212.50 a year, or $2,277.40 per paycheck.
- Does filing status change Arkansas withholding?
- Not the deduction. Arkansas subtracts $2,470 for every filing status. What changes is the number of AR4EC exemptions, each worth a $29.00 credit: 1 for single filers and 2 for married filers claiming a spouse.
- Do 401(k) contributions lower Arkansas taxes?
- Yes. Traditional 401(k) deferrals reduce both Arkansas and federal taxable wages. They do not reduce Social Security or Medicare wages, so FICA is still owed on the full amount.
- What is the tipped minimum wage in Arkansas?
- $2.63 an hour in cash wages, with a tip credit of up to $8.37, so tips must bring the total to at least $11.00.
Sources for Arkansas figures
Every Arkansas figure on this page was last checked on against these sources:
- State of Arkansas Withholding Tax Formula Method (Tax Year 2026, effective 01/01/2026) — Arkansas Department of Finance and Administration (tax year 2026, checked 2026-10-18)
- Form AR4EC, Employee’s Withholding Exemption Certificate (R 11/16/2022) — line 1 exemption counts and low-income rate thresholds — Arkansas Department of Finance and Administration (tax year 2026, checked 2026-10-18)
- Arkansas pre-tax treatment: Ark. Code § 26-51-453 (HSA deduction adopts IRC § 223); DFA Rule 1.26-51-404(b)(12) (Section 125 cafeteria plan benefits excluded); DFA rule noting Arkansas adoption of IRC §§ 401–404 (401(k)) — Arkansas Code / Arkansas DFA Income Tax Regulations (tax year 2026, checked 2026-10-18)
- Minimum Wages for Tipped Employees (table effective July 1, 2026) — U.S. Department of Labor, Wage and Hour Division (tax year 2026, checked 2026-10-18)
- Overtime Pay (Fair Labor Standards Act) — U.S. Department of Labor, Wage and Hour Division (tax year 2026, checked 2026-10-18)
Federal figures: see the methodology page.
Nearby states
More Arkansas pay tools
- Overtime pay in Arkansas
- Arkansas tipped wage calculator
- All state paycheck calculators
- How the AR math works
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