Basic Info
Deductions
Insurance Premiums
Your Arkansas Paycheck Results
Calculating your paycheck…
Arkansas State Income Tax Information
Arkansas uses a progressive income tax system with multiple brackets that vary by income level. These rates are updated annually.
| Taxable Income | Tax Rate |
|---|---|
| $0 – $4,400 | 2.0% |
| $4,401 – $8,800 | 4.0% |
| $8,801 and above | 4.4% |
Standard Deduction: $2,200 (Single), $4,400 (Married Filing Jointly)
Personal Exemption Credit: $29 per dependent
Federal Income Tax
Federal income tax is withheld based on IRS rules for your income, filing status, and W-4 details. It uses a progressive tax rate from 10% to 37% in 2025.
FICA Taxes
| Component | Rate | Income Limit |
|---|---|---|
| Social Security | 6.2% | Up to $168,600 |
| Medicare | 1.45% | No Limit |
| Additional Medicare | 0.9% | Above $200,000 (Single) / $250,000 (Married) |
Pre-Tax Deductions
These deductions are subtracted from your gross income before taxes are calculated, lowering both federal and state tax obligations:
- Health Insurance Premiums
- 401(k), 403(b), and other retirement contributions
- Health Savings Accounts (HSA), Flexible Spending Accounts (FSA)
- Commuter or transportation benefits
Arkansas–Specific Deductions and Credits
| Credit or Deduction | Details |
|---|---|
| Low Income Tax Relief Credit | Up to $29 for incomes under $23,600 |
| Classroom Expense Deduction | Up to $500 for eligible educators |
| Childcare Credit | Partial credit based on federal childcare claim |
| 529 Plan Deduction | Up to $5,000 ($10,000 for couples) for AR tuition savings |
| Military Pay Exclusion | Full or partial exemption for active and retired pay |
Interesting Facts About Arkansas Taxes
- Arkansas does not tax Social Security benefits.
- The state offers a tuition savings deduction for contributions to AR 529 college savings plans.
- Grocery tax in Arkansas is reduced compared to the standard state sales tax.
- Military retirees can exclude up to 100% of retirement pay from state income taxes.
- Arkansas conforms to many federal deductions, but also provides its own low-income relief credits.