What is the Arkansas income tax rate in 2026?

Arkansas has three brackets in 2026: 0% on the first $4,400 of taxable income, 2% on $4,401-$8,800, and 3.9% above $8,800. The top rate was reduced from 4.4% in 2025 to 3.9% in 2026 as part of an ongoing rate reduction plan. The standard deduction is $2,340 (single) or $4,680 (MFJ). No local income taxes apply.

What is Arkansas's rate reduction path?

Arkansas has been steadily cutting its top income tax rate: from 5.5% in 2022 to 4.9% in 2023, 4.4% in 2024-2025, and now 3.9% in 2026. Governor Sarah Huckabee Sanders signed legislation accelerating these cuts. The state aims to eventually reach a flat rate competitive with neighboring states like Tennessee (0%) and Texas (0%), with future reductions contingent on revenue growth.

Did Arkansas eliminate the grocery tax?

Yes. Arkansas eliminated its state sales tax on groceries effective 2026. Previously, groceries were taxed at a reduced state rate of 0.125%. The elimination removes the state's portion entirely, though local sales taxes on groceries may still apply depending on the city or county. This is a significant benefit for Arkansas families, especially lower-income households.

How does Arkansas compare to neighboring states on income tax?

Arkansas's 3.9% top rate is competitive in the region. Texas and Tennessee have no state income tax. Oklahoma's top rate is 4.75%. Missouri's top rate is 4.8%. Louisiana has a flat 3% rate. Mississippi has a flat 4.7%. On an $80K salary filing single, Arkansas's state tax is about $2,774 — higher than Louisiana ($2,025) and no-tax states, but lower than Oklahoma and Missouri. Arkansas's 0% bracket on the first $4,400 provides a built-in tax break.

Arkansas Paycheck Calculator 2026

Top rate dropped to 3.9% and first $4,400 is tax-free. Grocery tax eliminated 2026. Calculate your take-home pay.

Gross annual salary

Pay frequency

Filing status

Take-home per paycheck (biweekly)

$2,386.83

Gross pay (annual)$80,000

Deductions (annual)

Federal income tax−$9,049

AR state tax (0%-3.9%)−$2,774

Social Security (6.2%)−$4,960

Medicare (1.45%)−$1,160

Summary

Annual take-home$62,057

Effective total tax rate22.4%

Effective AR state rate3.5%

You keep per dollar78 cents

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Arkansas Paycheck Calculator 2026 · Updated April 2026

How to Use This Calculator

Tab "Take-Home Pay"

Enter your gross annual salary, pay frequency, and filing status. The calculator deducts federal income tax, Arkansas state tax (0%-3.9% progressive), and FICA (Social Security + Medicare). Under "More options," add 401(k) contributions and health insurance premiums to see the impact of pre-tax deductions. You'll see your per-paycheck take-home and an annual summary with your effective tax rate.

Tab "Tax Breakdown"

A visual pie chart showing exactly where your money goes. You'll see four tax slices: federal income tax, AR state tax, Social Security, and Medicare. The chart highlights that Arkansas cut its top rate to 3.9% for 2026 and the first $4,400 of taxable income is completely tax-free at the state level.

Tab "Compare Filing Status"

See how your take-home pay changes across Single vs Married Filing Jointly vs Head of Household. The comparison shows federal tax, AR state tax, and total take-home for each status so you can see the exact dollar difference. The AR standard deduction doubles from $2,340 (single) to $4,680 (MFJ), which reduces the state tax bill for joint filers.

The Formulas

Federal Income Tax (2026 brackets, progressive):
1. Start with gross annual salary
2. Subtract pre-tax deductions (401k, health insurance)
3. Subtract standard deduction ($15,750 Single / $31,500 MFJ / $23,500 HoH)
4. Apply progressive brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%

Arkansas State Tax (2026 progressive brackets):
AR taxable income = Gross salary - AR standard deduction ($2,340 Single / $4,680 MFJ)
First $4,400: 0% (tax-free)
$4,401 - $8,800: 2%
Above $8,800: 3.9%
No local income taxes apply anywhere in Arkansas.

FICA (Federal Insurance Contributions Act):
Social Security = 6.2% x min(Gross wages, $184,500)
Medicare = 1.45% x Gross wages
Additional Medicare = 0.9% x max(0, Gross wages - $200,000)

Take-Home Pay:
Net = Gross salary - Federal tax - AR state tax - Social Security - Medicare - Pre-tax deductions

All figures use 2026 IRS rates: SS wage base $184,500 (SSA), tax brackets from Rev. Proc. 2025-32, TCJA rates made permanent by OBBBA. Arkansas 3.9% top rate per Act 2023 as amended, effective January 1, 2026.

Example

Jordan — Marketing Manager in Little Rock, Arkansas

Filing Single. $80,000/year salary. Paid biweekly (26 paychecks). No pre-tax deductions.

Gross salary (annual)$80,000

Federal income tax-$9,049

AR state tax (0%-3.9%)-$2,774

Social Security (6.2%)-$4,960

Medicare (1.45%)-$1,160

Annual take-home$62,057

Per paycheck (biweekly)$2,387

AR taxable income = $80,000 - $2,340 = $77,660. AR tax = $0 (first $4,400) + $88 ($4,400-$8,800 at 2%) + $2,686 ($8,800+ at 3.9%) = $2,774. Jordan keeps 78.8% of gross salary (effective rate 21.2%). Under the old 4.4% top rate, Jordan would have owed about $3,099 in state tax — the 2026 cut saves about $325/year. Compared to neighboring Texas (no state tax), the 3.9% top rate costs $2,774 more — but Arkansas's lower cost of living often offsets this.

Frequently Asked Questions

How has Arkansas been cutting its income tax rate?▼

Arkansas has been on an aggressive rate reduction path since 2022. The top rate was 5.5% in 2022, dropped to 4.9% in 2023, then to 4.4% in 2024-2025, and now stands at 3.9% for 2026. Governor Sarah Huckabee Sanders has championed these cuts, with the stated goal of making Arkansas more competitive with no-income-tax neighbors like Texas and Tennessee. Future reductions are contingent on state revenue growth meeting certain benchmarks. The 0% bracket on the first $4,400 has been maintained throughout, providing a built-in exemption for lower-income earners.

What does the 0% bracket mean for me?▼

The first $4,400 of Arkansas taxable income (after the standard deduction) is taxed at 0%. This means every Arkansas filer gets at least $4,400 of state-level tax-free income beyond the standard deduction. For a single filer, that means the first $6,740 of gross income ($2,340 standard deduction + $4,400 zero bracket) is completely free of state tax. For married filing jointly, the first $9,080 ($4,680 + $4,400) is tax-free. This disproportionately benefits lower-income earners — someone earning $10,000 pays almost nothing in state income tax.

Is the grocery tax really gone in 2026?▼

Yes. Arkansas eliminated its state sales tax on groceries effective 2026. The state portion was already reduced to 0.125% in recent years, and the final elimination removes it entirely. However, local jurisdictions (cities and counties) may still levy their own sales tax on groceries — those typically range from 1% to 3.5% depending on where you live. The combined effect still saves most Arkansas families several hundred dollars per year on grocery purchases. This disproportionately benefits lower-income families who spend a larger share of income on food.

Does Arkansas have any local income taxes?▼

No. Arkansas does not impose any local, city, or county income taxes. Your only state-level income deduction is the progressive 0%-3.9% rate on income above the standard deduction. This is simpler than states like Ohio (where many cities levy 1-3% municipal income taxes) or New York (where NYC adds ~3.5%). Whether you live in Little Rock, Fayetteville, Fort Smith, or a rural county, your state income tax calculation is identical.

How does Arkansas compare to neighboring states?▼

Arkansas's 3.9% top rate is mid-range for the South-Central region. Texas and Tennessee have no state income tax at all, making them the cheapest for high earners. Louisiana has a flat 3% rate. Oklahoma's top rate is 4.75%, and Missouri's is 4.8%. Mississippi uses a flat 4.7%. On an $80K salary filing single, Arkansas's $2,774 state tax is higher than Louisiana ($2,025) but lower than Oklahoma (~$3,150) and Missouri (~$3,200). The 0% bracket on the first $4,400 is a unique advantage — most neighboring states start taxing from dollar one. Combined with Arkansas's very low cost of living (especially housing), the effective financial picture is competitive.

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