Estimate your take-home pay in Arkansas for 2026. The state levies income tax with a top rate of 3.9% (2% to 3.9% across 3 brackets). This means a portion of every paycheck goes toward state income tax in addition to federal withholding, Social Security, and Medicare.
Arkansas Tax Snapshot
- State Income Tax
- 3.9% top rate
- Sales Tax (state + local avg)
- 9.47%
- Avg Property Tax Rate
- 0.62%
- Median Home Value
- $162,500
- State Minimum Wage
- $11.00/hr
Did You Know?
Arkansas has been steadily lowering its top income tax rate through 2026.
How Arkansas Taxes Affect Your Paycheck
When you earn a paycheck in Arkansas, your employer withholds federal income tax, Social Security (6.2%), and Medicare (1.45%). On top of that, the state withholds income tax based on 2% to 3.9% across 3 brackets. The state minimum wage is $11.00 per hour, which sets the floor for hourly workers. Understanding these deductions helps you budget effectively and plan for the average 0.62% property tax rate on homes valued around $162,500.
Arkansas also levies a combined state and average local sales tax of 9.47%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.