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Arkansas Paycheck Guide

Arkansas uses progressive tax brackets. Higher portions of pay are taxed at higher rates.

PI
Reviewed by PayslipIQ Editorial Team, in-house payroll editor
Last reviewed May 2026 · Editorial standards on methodology

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.

Arkansas: the local picture

Arkansas runs a three-tier income tax with a top rate of 3.9% in 2025, down from 4.4% in prior years. No local income tax. Minimum wage is $11.00/hr.

How a Arkansas paycheck is built

Every Arkansas worker pays federal income tax, calculated on the W-4 you submitted to your employer using the IRS Publication 15-T tables. Federal income tax is followed by FICA: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies once year-to-date wages cross $200,000 single or $250,000 married filing jointly.

Arkansas adds progressive state income tax. The bracket you fall into depends on filing status and taxable income. Verify current brackets with the Arkansas DFA.

What changed recently in Arkansas

  • Top rate cut from 4.4% to 3.9% effective 2024. Further cuts tied to revenue triggers.
  • Standard deduction increased.
  • No paid family leave program. No SDI.

Arkansas payroll quirks workers should know

  • Arkansas withholding tables use a graduated structure that recalculates as YTD wages climb.
  • No city or county income tax in Arkansas.

Example breakdown

A hypothetical Arkansas worker on a $65,000 annual salary, paid bi-weekly, single filer, no extra adjustments. Educational only, your real paycheck differs.

Gross (bi-weekly)$2500.00
Federal income tax-$250.00
Social Security (6.2%)-$155.00
Medicare (1.45%)-$36.25
Arkansas state tax-$112.50
Estimated take-home$1946.25

Run your own numbers in the Arkansas paycheck calculator.

Authoritative sources

Frequently asked questions

Does Arkansas have state income tax?
Yes. Arkansas uses progressive brackets. Verify with the Arkansas DFA.
Are there local income taxes in Arkansas?
No. Arkansas does not have local income taxes on wages.
Does Arkansas have State Disability Insurance or Paid Family Leave premiums?
No. Arkansas does not have state-mandated SDI or PFL employee premiums.
Does Arkansas have daily-overtime rules?
No. Arkansas follows federal FLSA: 1.5x for hours above 40 in a workweek.
What is FICA on a Arkansas paycheck?
FICA is federal: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies above $200,000 single or $250,000 married filing jointly. FICA applies in every state.
Where do I verify Arkansas state tax withholding?
The Arkansas DFA (https://www.dfa.arkansas.gov/) is the authoritative source. For your specific paycheck, contact your employer's payroll team or a CPA.
Why does my Arkansas state tax change mid-year?
Arkansas uses cumulative withholding. As your year-to-date taxable wages climb across brackets, the per-paycheck withholding adjusts. It is normal.
Is there a special form for Arkansas state withholding?
AR4EC. File one when you start a job and update it after life changes.