How to Use This Calculator
Enter your income, filing status, and any deductions. The calculator computes your Arkansas state income tax alongside your federal tax, showing exactly how much goes to each and what you take home.
The most useful thing to try? Compare different income levels to see how Arkansas's brackets affect your tax bill, then look at how combined federal + state taxes shape your total take-home pay.
Here's what each field means:
Annual Income is your total earnings before any taxes. Include wages, freelance income, investment income, and any other sources.
Filing Status determines which set of tax brackets and deductions apply. Arkansas uses filing statuses similar to the federal system — single, married filing jointly, married filing separately, and head of household.
Arkansas Income Tax: What You Need to Know
Arkansas uses a progressive income tax system with rates ranging from 2% to 3.9%. Like the federal system, this means your income is taxed in layers — each bracket only applies to the income within that range, not your entire income.
Arkansas Tax Brackets (Single Filers)
| Taxable Income | Tax Rate |
|---|---|
| $0 - $4,400 | 2.0% |
| $4,400 - $8,800 | 4.0% |
| $8,800+ | 3.9% |
A Real Example
Let's say you're a single filer earning $60,000 in Arkansas. After applying the standard deduction of $2,340, your income flows through each bracket:
Your approximate Arkansas state income tax would be around $2,136, for an effective state tax rate of about 3.6%.
Remember, this is just the state portion. You'll also owe federal income tax and FICA taxes on top of this.
Deductions and Exemptions
Standard Deduction: Arkansas offers a standard deduction of $2,340 for single filers and $4,680 for married couples filing jointly.
Arkansas allows a standard deduction and personal tax credits. The state does not allow itemized deductions separately from the federal return in most cases.
Local Taxes
No local income taxes in Arkansas.
What's Unique About Arkansas
Arkansas has been aggressively cutting its top income tax rate in recent years. The top rate dropped from 5.9% in 2022 to 3.9% in 2025 — one of the steepest reductions of any state. The bracket structure is somewhat unusual: the middle bracket (4.0%) is actually higher than the top bracket (3.9%), a quirk of the phased rate cuts.
Recent Changes
Governor Sanders signed legislation accelerating income tax cuts. The top rate dropped to 3.9% for 2025, with plans for further reductions if revenue targets are met.
How to Use This Calculator Strategically
Model a raise or job change. See how additional income moves through Arkansas's brackets and affects your effective tax rate.
Compare filing statuses. If you're married, run the numbers both jointly and separately. The better option depends on your specific income situation.
Plan your deductions. Test how maximizing retirement contributions or other deductions affects your Arkansas tax bill.
Evaluate a move. Compare Arkansas's rates to other states you're considering. The difference in take-home pay might surprise you.
References
- Arkansas Department of Finance and Administration. (2025). Individual Income Tax.
This calculator is for educational purposes only and does not constitute tax or financial advice. Tax rates, brackets, and rules change regularly. Consult a qualified tax professional for guidance specific to your situation.