Use our Arkansas Paycheck Calculator to quickly figure out how much you’ll take home after taxes. Just enter your salary, pay frequency, and deductions and get a detailed breakdown of your gross pay, taxes, and net pay in seconds.
How Your Arkansas Paycheck is Calculated
We follow this formula:
Gross Pay − (Federal Taxes + State Taxes + Local Taxes + FICA) = Net Pay
Here’s what each term means:
- Gross Pay – All your earnings before deductions (salary, hourly wage, overtime, bonuses)
- Federal Income Tax – The IRS withholding based on your filing status, deductions, and W-4 elections
- FICA (Social Security & Medicare) – Payroll taxes that fund federal programs
- State Income Tax – What Arkansas withholds based on your taxable income and the state’s tax brackets
- Local Taxes – Any municipal or city taxes (if applicable)
A Guide to Arkansas State Payroll Taxes
Arkansas State Income Tax
Arkansas uses a graduated (progressive) tax structure. As income rises, you move into higher rates.
Here are current tax brackets for Arkansas (for many filers):
| Taxable Income Range | Marginal Rate |
|---|---|
| $0 – $5,499 | 0.0 % |
| $5,500 – $10,899 | 2.0 % |
| $10,900 – $15,599 | 3.0 % |
| $15,600 – $25,699 | 3.4 % |
| $25,700 – $92,300 | 3.9 % |
| Over $92,300 | 3.9 % (top) |
Because the top rate is 3.9 %, once your income passes the threshold, any additional taxable income is taxed at 3.9 %.
Arkansas allows a standard deduction and personal exemptions under its tax rules. These reduce your taxable income before applying the rates.
In recent legislation, Arkansas lowered its top individual income tax rate from 4.4 % down to 3.9 %.
State-Specific Programs & Withholdings
Arkansas does not withhold a state disability insurance (SDI) contribution from employees.
Arkansas employers pay state unemployment insurance (SUI / unemployment tax), but that is not deducted from employee wages.
Local wage or municipal income taxes are uncommon in Arkansas. Most employees will not see a “local tax” withholding on their paycheck.
Understanding Federal & FICA Taxes
Federal and FICA taxes apply in all states. They often form a large portion of your overall withholding:
- Social Security tax: 6.2 % on wages up to the annual cap
- Medicare tax: 1.45 % on all wages (plus an extra 0.9 % surtax on high incomes)
- Federal Income Tax: Withheld based on IRS brackets, deductions, and your W-4 selections
These deductions reduce your gross pay before state and any local taxes take effect.
Local Taxes in Arkansas
Arkansas generally does not impose local income or wage taxes.
If you live or work in any city Little Rock, Fayetteville, Hot Springs, Springdale you likely won’t see a local income tax deduction on your pay stub.
Because local taxation is rare, your take-home pay calculation focuses mostly on federal, FICA, and state withholdings.
Frequently Asked Questions (FAQs) About Arkansas Paychecks
What is the minimum wage in Arkansas?
As of 2025, Arkansas has a minimum wage of $11.00 per hour for most employees (for businesses with four or more employees).
How often are paydays in Arkansas?
Arkansas law does not mandate a specific pay frequency. Common schedules are weekly, bi-weekly, or semi-monthly. Employers must maintain consistency.
What is the Arkansas state tax rate for 2025?
Arkansas’s top individual income tax rate is 3.9 %. Taxable income is taxed under a graduated structure, ranging from 0 % to 3.9 %.
Are 1099 contractors subject to Arkansas taxes?
Yes. If you work as an independent contractor (1099) in Arkansas, you pay the same state income tax on your net earnings under the same brackets. You also owe self-employment tax for Social Security and Medicare obligations.
What are the overtime laws in Arkansas?
Arkansas follows federal standards under the Fair Labor Standards Act. Nonexempt employees must receive 1.5 times their regular rate for hours worked over 40 in a workweek. Exempt employees (such as certain salaried roles) are not eligible for overtime.
Tips for More Accurate Estimates
- Provide correct filing status, number of dependents, and pre-tax deductions (retirement contributions, health premiums) to improve your net pay estimate
- If your income falls near a bracket threshold, even small changes in deductions or earnings can shift your marginal rate
- Check your pay stub regularly to verify that withholdings (federal, FICA, state) line up with your inputs
- Re-run the calculator whenever your salary, bonuses, or deductions change to see how your take-home pay shifts