Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and Arkansas state tax rates. Always consult a qualified tax professional.
Arkansas income tax overview
Arkansas has steadily cut its top income tax rate in recent years, bringing it down from over 6% to 3.9% for 2026 through a series of legislative tax cuts aimed at improving the state's competitiveness in the South. Arkansas uses a progressive system but with a relatively low top bracket threshold, meaning most middle-income earners pay close to the top marginal rate on a large share of their income. The state continues to evaluate further reductions as revenue allows. Arkansas does not tax Social Security benefits, and offers a modest exemption for other retirement income. The state's standard deduction is relatively low compared to federal levels, meaning more income is exposed to state tax than under the federal system.
2026 Arkansas income tax rates
Tax rate
Income range (single filer)
2%
$0 – $5,300
3.5%
$5,301 – $10,599
3.9%
Over $10,599
Worked example: $75,000 salary in Arkansas
A $75,000 salary in Arkansas results in approximately $2,777 in state income tax (effective ~3.7%), plus $12,580 federal tax, $4,650 Social Security, and $1,088 Medicare. Annual take-home is approximately $53,905, or $2,073 bi-weekly.
Key facts: 3.9% top rate (down from 6%+) · Social Security exempt · No local income tax
Frequently asked questions — Arkansas income tax
Yes. Arkansas has cut its top income tax rate multiple times in recent years, moving from 6.6% down to 3.9% as part of an ongoing legislative effort to remain competitive with neighboring no-tax and low-tax states.
No. Arkansas does not tax Social Security benefits, which provides meaningful relief for retirees even though the state does tax most other retirement income.
Arkansas's standard deduction is relatively modest at $2,340 for single filers in 2026 — well below the federal $15,000 — meaning more of your income is exposed to state tax.
No. Arkansas cities and counties do not levy local income taxes. The state income tax is the only income-based tax beyond federal.
At 3.9%, Arkansas is now lower than Missouri's top rate and comparable to Oklahoma, though still higher than Tennessee and Texas which have no income tax at all.
Compare Arkansas to other states
Use our US income tax calculator to compare your take-home pay across all 50 states. You may be surprised how much location affects your net income.