Arkansas Paycheck Calculator

Arkansas imposes a state income tax of 4.9%. Flat rate reduced from 5.5%. Your actual Arkansas tax liability depends on your filing status, deductions, and taxable income.

In addition to Arkansas state tax, all workers pay federal income tax (10%—7% progressive brackets) and FICA taxes (7.65% combined). Use our calculator above to see your complete tax breakdown.

Arkansas has a flat state income tax rate of 4.9% for 2026, down from 5.5% in previous years as part of ongoing tax reform efforts. The Arkansas Department of Finance and Administration oversees state taxes. The state has been gradually reducing its income tax burden to attract businesses and residents.

Key Tax Features: Arkansas offers a standard deduction of $2,340 for single filers. The state conforms to many federal tax provisions but has its own rules for certain deductions. Arkansas taxes Social Security benefits for higher-income retirees. The state also imposes a sales tax on groceries.

Sales Tax: Arkansas's state sales tax rate is 6.5%, with local governments adding up to 5%, bringing combined rates to over 11% in some areas. Groceries are taxed at a reduced rate of 1.5% plus local taxes.

Business Environment: Arkansas is home to major corporations including Walmart, Tyson Foods, and J.B. Hunt. The state offers various economic development incentives and has a right-to-work status.

Arkansas has steadily reduced its income tax rate from 5.5% to 4.9%, with further reductions planned. The state is the headquarters of Walmart and Tyson Foods, with a strong agricultural and logistics sector.