Key Tax Facts: Arkansas
- Top rate dropped to 3.9% as of 2024 (was 4.4%)
- Social Security benefits are exempt from state income tax
- Military retirement pay fully exempt
- Low-income tax tables apply to income under $22,200
Estimate Your 2026 Federal and Arkansas State Income Tax
Arkansas State Income Tax Overview
Arkansas uses a graduated income tax. Filers with net income of $89,600 or less use a low-income table: no tax below $5,300, then 2%, 3%, 3.4%, and a top rate of 3.9% on income above $25,000. Higher earners use a separate schedule that reaches the same 3.9% top rate, cut from 4.4% retroactive to January 1, 2024. Arkansas offers a low-income tax credit and allows a deduction for federal income taxes paid, which reduces Arkansas taxable income for many filers. The standard deduction is $2,410 for single filers and $4,820 for married couples filing jointly, and both are adjusted annually for inflation.
What Is Different About Arkansas's Income Tax
Deductions and exemptions
Arkansas has a state standard deduction of $2,410 for single filers and $4,820 for married couples filing jointly, or filers can itemize. Personal tax credits of $29 per taxpayer and dependent replace exemptions.
Credits worth knowing
The state offers a low-income tax credit that can eliminate tax for filers below an income threshold, a child care credit tied to the federal credit, and a credit for taxes paid to other states.
Retirement, capital gains, and other income
Social Security is exempt, and the first $6,000 of employer-sponsored retirement plan or IRA income is exempt. Military retirement pay is fully exempt. Arkansas excludes 50% of net long-term capital gains from taxable income and fully exempts gains above $10 million, a benefit few states offer.
Rules summarized from the Arkansas Department of Finance and Administration guidance for tax year 2026. Amounts that index annually are described in general terms; confirm the current figure on the official form instructions.
Arkansas Income Tax Brackets (Single Filers, 2026) projected
These are the Arkansas state income tax brackets for single filers. Married-filing-jointly brackets use wider income thresholds, carried forward from 2025 pending official 2026 figures. Only the income within each bracket is taxed at that rate -- not your entire income.
| Taxable Income (Single) | Tax Rate |
|---|---|
| $0 - $5,300 | 0% |
| $5,300 - $10,600 | 2% |
| $10,600 - $15,100 | 3% |
| $15,100 - $25,000 | 3.4% |
| Over $25,000 | 3.9% |
Source: Arkansas Department of Finance and Administration. Brackets shown are for single filers; married-filing-jointly thresholds are wider.
What a Arkansas Resident Actually Pays: A Worked Example
Your effective tax rate is almost always lower than your top bracket. Here is how the math works for a single filer earning $65,000.
Where Arkansas Stands Among the 50 States
Arkansas's top rate of 3.9% ranks #34 of the 41 states that tax wages -- among the ten lowest of the states that levy the tax at all. The median top rate across those 41 states is 5.2%, so Arkansas is below the middle of the pack. It is one of 27 states with a graduated schedule, using 5 brackets; the top rate starts at $25,000 of taxable income, and the lowest bracket ends at $5,300.
On sales tax the picture is different: Arkansas's combined state and average local rate of 9.44% ranks #3 of 50, against a national median of 7.00%.
Arkansas State Tax at Five Income Levels (2026, single filer)
| Taxable income | Arkansas tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $1,163 | 2.91% | 3.9% |
| $65,000 | $2,138 | 3.29% | 3.9% |
| $100,000 | $3,503 | 3.50% | 3.9% |
| $150,000 | $5,453 | 3.64% | 3.9% |
| $250,000 | $9,353 | 3.74% | 3.9% |
Brackets applied directly to the taxable-income figure shown, before Arkansas-specific deductions, exemptions, or credits. Federal tax is separate and comes on top of every row.
Arkansas vs. Its Neighbors on $75,000 of Taxable Income
A Arkansas resident with $75,000 of taxable income pays about $2,528 in state income tax. Of Arkansas's 6 neighboring states, 3 would tax that income less and 3 would tax it more.
Frequently Asked Questions -- Arkansas Income Tax
Does Arkansas have a state income tax?
Yes. Arkansas imposes a state income tax with a top marginal rate of 3.9%. This is separate from your federal income tax obligation.
What is the Arkansas income tax rate for 2026?
Arkansas uses a graduated income tax system with rates from 0% to 3.9%. Only the income within each bracket is taxed at that bracket's rate -- not your entire income.
Do I have to file a Arkansas state tax return?
Most full-year Arkansas residents with income above the state filing threshold must file a state return. Check the Arkansas Department of Finance and Administration for current thresholds and requirements.
How accurate is this estimate?
The federal figure uses the official IRS 2026 brackets and standard deduction. The Arkansas figure applies the 2026 single-filer rate schedule to the same taxable income; it does not model Arkansas-specific deductions, exemptions, credits, or local income taxes, so treat it as a planning number and confirm with the Arkansas Department of Finance and Administration or a tax professional before filing.
How does Arkansas compare with nearby states?
On $75,000 of taxable income, Arkansas collects about $2,528. Tennessee collects $0, Texas collects $0, Louisiana collects $2,250, Mississippi collects $3,300, Missouri collects $3,349, Oklahoma collects $3,374. See the comparison table above.
Where does Arkansas rank on state income tax?
Arkansas's top rate of 3.9% ranks #34 of the 41 states with an income tax, against a median top rate of 5.2%. Its combined sales tax of 9.44% ranks #3 of 50.
Does this calculator include federal income tax?
Yes. It estimates your 2026 federal income tax using the official IRS 2026 brackets, then applies the Arkansas rate schedule to the same taxable income and shows both figures plus the combined total.
Where can I find official Arkansas tax forms?
Official forms, instructions, and filing guidance are available at the Arkansas Department of Finance and Administration.
What is the sales tax rate in Arkansas?
Arkansas's combined state and average local sales tax rate is 9.44%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are Arkansas 2026 state taxes due?
2026 taxes are generally filed in 2027. The Arkansas filing deadline is April 15, 2027, the same as the federal deadline.
Understanding Your Arkansas Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and Arkansas state tax owed to the Arkansas Department of Finance and Administration. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your Arkansas Bill
Pre-tax retirement contributions reduce your federal and Arkansas taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, Arkansas-specific credits and deductions that don't exist at the federal level are listed at the Arkansas Department of Finance and Administration -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
Arkansas's combined state-plus-average-local sales tax rate is 9.44%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Arkansas Department of Finance and Administration or a qualified tax professional for guidance specific to your situation.