Income Tax for Arkansas (2026)

How This Calculator Works in Arkansas

This calculator applies Arkansas's 2026 tax brackets and rates to estimate your state income tax liability. Enter your income and filing status to see your marginal rate, effective rate, and estimated tax owed.

Arkansas Overview

Arkansas levies a progressive income tax with a top rate of 4.4%, recently reduced from 5.5% as part of aggressive tax reform. The first $24,300 of income is exempt from state tax. The state's ongoing rate reductions reflect competition with no-income-tax neighbors Tennessee and Texas, and further cuts are possible if revenue targets are met.

How Arkansas Compares

Arkansas's top income tax rate of 3.9% compares to Missouri at 4.8% and Tennessee at 0%. The rate differences can meaningfully impact take-home pay for workers near state borders.

Arkansas's income tax rate of 3.9% compares to a national average of approximately 5.04%. This is below the national average.

Tips for Arkansas Residents

• 1Arkansas recently reduced its top income tax rate to 4.4% (2024), down from 5.5% in 2021, as part of multi-year tax reform.
• 2The state has 3 brackets for income over $24,300 (which is exempt), with rates of 2%, 4%, and 4.4%.
• 3Arkansas does not tax Social Security benefits and provides exemptions for up to $6,000 of retirement income.
• 4The state's rate reductions aim to make it competitive with neighboring Tennessee and Texas, which have no income tax.
• 5Arkansas has a relatively high sales tax — the combined state and local rates average about 9.5%, among the highest in the nation.

Frequently Asked Questions