Arkansas Payroll · Graduated 0%–3.9% · Form AR4EC · IRS Publication 15-T
Arkansas Paycheck Calculator 2025
Estimate your Arkansas take-home pay for hourly or salaried work in a single form. The calculator deducts federal income tax withholding, Social Security, Medicare, and the graduated Arkansas income tax using the Department of Finance and Administration formula method, subtracting the $2,410 standard deduction and applying the 0 to 3.9 percent bracket schedule with the $50 midrange lookup, then a $29 personal tax credit per AR4EC exemption. Uses 2025 IRS Publication 15-T and the current Arkansas withholding formula.
Pay Details
Check this on Form W-4 if you hold two jobs or your spouse also works. It switches to the higher Step 2 withholding schedule.
W-4 Adjustments (Optional)
Annual dependent credit total (e.g. $2,000 per child under 17)
Step 4c additional withholding per paycheck
Arkansas Tax (Form AR4EC)
From Form AR4EC. Each exemption is a $29 personal tax credit subtracted from your annual Arkansas tax, so it changes the check only slightly. The $2,410 standard deduction applies either way. No AR4EC on file means zero exemptions.
Residents of Texarkana, Arkansas (and Texarkana, Texas residents working in Texarkana, AR) are exempt from Arkansas income tax under Act 48 of 1977. Selecting Yes sets Arkansas withholding to $0.
Enter your pay details and click Calculate to see your take-home pay breakdown.
Want the full Arkansas payroll picture, including how the withholding formula reconciles on Form AR1000F, why AR4EC exemptions barely move the check, the Texarkana border-city exemption, and the employer DWS unemployment obligations? Read the Arkansas Payroll Taxes guide.
Arkansas Payroll Taxes Guide →Short Answer
This Arkansas paycheck calculator estimates net take-home pay after federal income tax withholding, Social Security (6.2%), Medicare (1.45%), and the graduated Arkansas income tax. Arkansas withholds by annualizing wages, subtracting a $2,410 standard deduction, rounding to the nearest $50 midrange, applying the 0 to 3.9 percent bracket schedule, and then subtracting a $29 personal tax credit for each AR4EC exemption. For a single Arkansas worker earning $65,000 per year paid biweekly with one exemption, gross pay is about $2,500 per period, and net take-home is roughly $2,004 after about $227 of federal withholding, FICA, and about $77 of Arkansas income tax. Arkansas has no local wage tax and no state disability or family leave deduction, so the stub is short.
Key Takeaways
- Arkansas withholds a graduated income tax on every paycheck. This calculator applies the DFA formula method: annualize wages, subtract the $2,410 standard deduction, round the result to the nearest $50 midrange, apply the 0 to 3.9 percent bracket schedule, subtract a $29 personal tax credit per exemption, and divide by pay periods.
- The 2025 brackets on net taxable income are 0 percent up to $5,500, 2 percent to $10,900, 3 percent to $15,600, 3.4 percent to $25,700, and 3.9 percent above $25,700. The top rate falls to 3.7 percent for 2026 and the standard deduction rises to $2,470; the Arkansas Payroll Taxes guide reflects the 2026 figures.
- Form AR4EC sets exemptions, and each exemption is only a $29 tax credit, not a wage deduction. Exemptions barely change the check, and the $2,410 standard deduction applies to everyone. Having no AR4EC on file means zero exemptions, which costs only about $29 per year per unclaimed exemption.
- Federal income tax uses the IRS Publication 15-T percentage method on annualized wages. Social Security is 6.2% up to the 2025 wage base of $176,100; Medicare is 1.45% with no cap plus a 0.9% surtax that employers withhold on wages above $200,000.
- Arkansas has no municipal or county wage income tax and no employee-paid disability, family leave, or unemployment deduction, so an Arkansas pay stub is shorter than a Maryland, New Jersey, or California stub.
- Residents of Texarkana, Arkansas are exempt from Arkansas income tax under Act 48 of 1977 and file Form AR4EC(TX). For supplemental pay such as bonuses and RSUs, use the Bonus Tax Calculator and RSU Tax Calculator.
2025 Arkansas Payroll Tax Quick Reference
| Tax | Rate | Wage Base / Threshold | Notes |
|---|---|---|---|
| Federal Income Tax | 10%–37% | No cap | Graduated brackets. Based on W-4 filing status and Publication 15-T percentage method tables. |
| Social Security (OASDI) | 6.2% employee | $176,100 (2025) | Withholding stops at wage base. Employer matches 6.2%. |
| Medicare (HI) | 1.45% employee | No limit | Employer matches 1.45%. |
| Additional Medicare Tax | 0.9% | $200,000 single/HOH; $250,000 MFJ; $125,000 MFS | Employee only. Employer withholds once individual wages exceed $200,000 in the calendar year. |
| Arkansas Income Tax | 0% / 2% / 3% / 3.4% / 3.9% | Top rate over $25,700 net taxable | Graduated. Withheld via the DFA formula method after the $2,410 standard deduction, with the $50 midrange lookup. |
| AR standard deduction (withholding) | – | $2,410 (2025) | Flat amount subtracted for everyone, regardless of exemptions. Rises to $2,470 for 2026. |
| AR4EC exemption credit | – | $29 each | A personal tax credit subtracted from annual tax, not a wage deduction. No AR4EC on file means zero exemptions. |
| AR 2026 top rate | 3.7% | – | The top marginal rate falls from 3.9% (2025) to 3.7% (2026); the hub reflects the 2026 figures. |
| Texarkana border-city exemption | 0% | Texarkana city limits | Act 48 of 1977. Qualifying residents pay no Arkansas income tax and file Form AR4EC(TX). |
| Employee UI / disability / family leave | None | – | Arkansas deducts none from employees. Unemployment is employer-funded through DWS on the first $7,000 of wages. |
| Local wage income tax | None | – | No city or county wage tax anywhere in Arkansas. |
How This Calculator Works
Hourly Mode: Gross Pay Per Period
Gross pay per period equals the hourly rate multiplied by hours worked per week, then scaled to the pay period. For biweekly pay: hourly rate × hours per week × 2. For weekly: hourly rate × hours per week. For semi-monthly and monthly: hourly rate × hours per week × (52 ÷ periods per year).
Salary Mode: Gross Pay Per Period
Gross pay per period equals annual salary divided by the number of pay periods per year. Weekly: ÷ 52. Biweekly: ÷ 26. Semi-monthly: ÷ 24. Monthly: ÷ 12.
Social Security Tax
Social Security is 6.2% of annualized gross wages up to the $176,100 wage base for 2025. The per-period amount is the annualized Social Security tax divided by pay periods. This calculator does not track year-to-date cumulative wages, so for workers approaching the wage base, actual withholding will stop mid-year once the limit is reached.
Medicare Tax
Standard Medicare is 1.45% on all gross wages. The calculator adds the 0.9% Additional Medicare Tax on annualized wages above $200,000, matching the employer withholding rule in IRS Topic 560: employers withhold the surtax once wages exceed $200,000 in a calendar year regardless of filing status. Your final liability on Form 8959 uses filing-status thresholds ($200,000 single/HOH, $250,000 MFJ, $125,000 MFS), so married filers may reconcile the difference at filing.
Federal Income Tax Withholding
The calculator follows IRS Publication 15-T Worksheet 1A (Percentage Method for Automated Payroll Systems) for 2025:
- Annualize the per-period gross pay (multiply by pay periods per year) - line 1c.
- Add Step 4a other income; subtract Step 4b additional deductions - lines 1d-1f.
- Subtract the line 1g allowance: $12,900 for married filing jointly or $8,600 otherwise. If the W-4 Step 2 box is checked, subtract $0 instead. The result is the Adjusted Annual Wage Amount (line 1i).
- Apply the Annual Percentage Method table for the W-4 filing status - the STANDARD schedule, or the Step 2 Checkbox schedule when the Step 2 box is checked - to get the tentative annual withholding (line 2g), then divide by pay periods (line 2h).
- Subtract Step 3 dependent credits divided by pay periods (line 3c).
- Add Step 4c extra withholding per period (line 4b).
Arkansas Income Tax Withholding
Arkansas withholds income tax using the formula method published by the Department of Finance and Administration (DFA). It is status-agnostic: there are no separate single and married rate tables. The steps are:
- Annualize the per-period gross pay (multiply by pay periods per year).
- Subtract the $2,410 standard deduction (2025) to get annual net taxable income. This deduction is applied for everyone, regardless of exemptions.
- If net taxable income is below $100,001, round it to the nearest $50 midrange: truncate to the nearest $100 and add $50 (so $23,324 becomes $23,350). At $100,001 or more, use the exact figure.
- Apply the bracket schedule below and subtract the bracket adjustment to get the annual gross tax, then round to the nearest whole dollar.
- Subtract a $29 personal tax credit for each AR4EC exemption. The result cannot go below zero. Divide by pay periods to get the per-period withholding.
| AR net taxable income (2025) | Withholding (bracket method) |
|---|---|
| $0 to $5,500 | 0% |
| $5,500 to $10,900 | 2% of the amount, then subtract $109.98 |
| $10,900 to $15,600 | 3% of the amount, then subtract $218.97 |
| $15,600 to $25,700 | 3.4% of the amount, then subtract $281.37 |
| $25,700 to $92,301 | 3.9% of the amount, then subtract $409.86 |
| $92,301 to $95,501 | 3.9%, then a declining adjustment ($397.40 down to $97.40) that phases out the lower-bracket benefit |
| Over $95,501 | 3.9% of the amount, then subtract $87.40 |
These are the 2025 figures ($2,410 standard deduction, 3.9 percent top rate, $29 exemption credit). For 2026 the standard deduction rises to $2,470 and the top rate falls to 3.7 percent; the Arkansas Payroll Taxes guide reflects the 2026 numbers. Because withholding is an estimate, the final Arkansas tax is settled on Form AR1000F, which may also use the low-income tax tables that this withholding formula does not apply.
What Arkansas Does Not Deduct
Unlike New Jersey or California, Arkansas has no state disability insurance, no paid family leave payroll deduction, and no employee unemployment tax. Unemployment insurance is funded entirely by employers through the Division of Workforce Services (DWS) on the first $7,000 of each worker's wages. There is also no local wage tax anywhere in Arkansas. So the Arkansas lines on a pay stub are just the one state income tax line, in addition to the federal taxes, and that line is $0 for a qualifying Texarkana border-city resident.
Real-World Paycheck Scenarios
Scenario 1: Single Worker Paid Biweekly
Marcus earns $65,000 per year at a firm in Little Rock. He is paid biweekly, files single on his federal W-4, and claims one exemption on his Form AR4EC. His biweekly gross is $65,000 ÷ 26 = $2,500.00.
Arkansas income tax detail (annualized): net taxable income is $65,000 − $2,410 standard deduction = $62,590, rounded to the $50 midrange of $62,550. That is in the $25,700 to $92,301 bracket, so annual gross tax is 3.9% of $62,550 − $409.86 = $2,439.45 − $409.86 = $2,029.59, rounded to $2,030. Subtract the $29 credit for one exemption to get $2,001 for the year, divided by 26 = $76.96 per paycheck. Notice there are no disability, family leave, or unemployment lines, money a worker in New Jersey would see deducted.
Scenario 2: Higher Earner in the Bracket-Adjustment Phase-Out
Elena earns $95,000 as a project manager in Fayetteville. She is paid biweekly, files married filing jointly on her federal W-4, and claims two exemptions on her Form AR4EC. Her biweekly gross is $95,000 ÷ 26 = $3,653.85.
Elena's Arkansas tax lands in the high-income phase-out. Net taxable income is $95,000 − $2,410 = $92,590, rounded to the $50 midrange of $92,550. That falls in the $92,501 to $92,601 band, where the bracket adjustment is $377.40 instead of the full $409.86, clawing back part of the lower-bracket benefit. Annual gross tax is 3.9% of $92,550 − $377.40 = $3,609.45 − $377.40 = $3,232.05, rounded to $3,232, less the $58 credit for two exemptions = $3,174 for the year, divided by 26 = $122.08. Arkansas withholding ignores federal filing status, so Elena's MFJ status affects only the federal line; the Arkansas line depends solely on wages and exemptions.
Practitioner Insight
The Arkansas paycheck question we field most is the worker who expects claiming more exemptions on the AR4EC to noticeably raise their take-home pay, the way an allowance does in a state like Minnesota. In Arkansas an exemption is only a $29 personal tax credit, so each one adds about $1.12 to a biweekly check. The lever that actually matters is the flat $2,410 standard deduction, and that applies to everyone regardless of what the AR4EC says. We tell clients not to over-claim exemptions chasing a bigger paycheck; the effect is negligible and it can leave a small balance due.
The second pattern is the bracket-adjustment phase-out that most people have never heard of. For net taxable income between about $92,301 and $95,501, Arkansas shrinks the bracket adjustment step by step, so a raise in that band is taxed at a higher effective rate than the headline 3.9 percent as the lower-bracket benefit is clawed back. Above roughly $95,501 the worker is essentially paying a flat top rate on all income. Clients in that pay range sometimes see withholding tick up faster than they expect, and this is why.
A third point worth flagging: Texarkana. Residents inside the city limits of Texarkana, Arkansas owe no Arkansas income tax under Act 48 of 1977, and Texarkana, Texas residents are exempt on income earned in Texarkana, Arkansas. Employees claim it by filing Form AR4EC(TX), but they still must file an Arkansas return. Workers just outside the city limits, on a rural route or in a nearby town, do not qualify, which trips up new hires who assume the whole area is covered.
When This Calculator Gives a Less Accurate Estimate
- Pre-tax deductions not entered: A 401(k) or 403(b) contribution and Section 125 medical premiums reduce the wages subject to both federal and Arkansas income tax withholding. This calculator does not model pre-tax deductions, so actual income tax withholding is lower and net pay is typically higher than the estimate.
- Low-income tax tables: Employees who elect the low-income tax tables on Form AR4EC receive a separate credit that can reduce Arkansas withholding to zero at lower incomes. This calculator uses the standard formula method and does not apply the low-income credit, so it can overstate withholding for those workers.
- Texarkana exemption boundary: The border-city exemption applies only inside the city limits of Texarkana. If you set the exemption to Yes but live on a rural route or in a surrounding town, actual Arkansas withholding still applies.
- Year-to-date Social Security cap: The calculator annualizes Social Security evenly. For a worker who passes the $176,100 wage base mid-year, actual Social Security withholding stops at that point rather than spreading across every paycheck.
- Supplemental wages: Bonuses, commissions, and other supplemental pay can be withheld under a different method. For the federal supplemental math on a bonus, use the Bonus Tax Calculator.
Frequently Asked Questions
How is take-home pay calculated in Arkansas?
Arkansas take-home pay equals gross pay minus federal income tax withholding, Social Security (6.2%), Medicare (1.45%), and Arkansas income tax withholding. Federal withholding uses IRS Publication 15-T. Arkansas income tax is withheld by annualizing wages, subtracting a $2,410 standard deduction to get net taxable income, rounding that figure to the nearest $50 midrange, applying the graduated 0 percent to 3.9 percent bracket schedule, and then subtracting a $29 personal tax credit for each exemption claimed on Form AR4EC. Arkansas has no local wage income tax and deducts no state disability, family leave, or employee unemployment contributions.
What are Arkansas's income tax rates for 2025?
Arkansas withholds on annual net taxable income using graduated brackets: 0 percent up to $5,500, 2 percent to $10,900, 3 percent to $15,600, 3.4 percent to $25,700, and 3.9 percent above $25,700 for 2025. The 3.9 percent figure is the state's top marginal rate for 2025; it falls to 3.7 percent for 2026, and the standard deduction rises from $2,410 to $2,470. A high-income bracket-adjustment table between about $92,301 and $95,501 of net taxable income phases out the benefit of the lower brackets so that high earners effectively pay a flat top rate.
How does Form AR4EC affect my Arkansas withholding?
Form AR4EC, the Employee's Withholding Exemption Certificate, tells your employer how many Arkansas withholding exemptions to use. Each exemption is worth a $29 personal tax credit subtracted from your annual Arkansas tax, so exemptions change your withholding only slightly, unlike states where an allowance is a large wage deduction. The $2,410 standard deduction is applied for everyone regardless of exemptions. If you file no AR4EC, your employer withholds using zero exemptions, which costs only about $29 per year per unclaimed exemption.
Does Arkansas have a local city income tax?
No. Arkansas has no municipal or county wage income tax withheld from employees anywhere in the state, including Little Rock, Fayetteville, and Fort Smith. An Arkansas pay stub shows federal taxes and the single state income tax line, with no city or local wage line. The one special case is the Texarkana border-city exemption, which removes Arkansas income tax entirely for qualifying residents rather than adding a local tax.
Who qualifies for the Texarkana income tax exemption?
Under Act 48 of 1977, residents of Texarkana, Arkansas are exempt from Arkansas income tax on all income, and residents of Texarkana, Texas are exempt from Arkansas income tax on income earned in Texarkana, Arkansas. The employee files Form AR4EC(TX) with the employer to stop Arkansas withholding. The exemption applies only inside the city limits of either Texarkana, not to surrounding rural areas or nearby towns, and exempt residents must still file an Arkansas income tax return to claim it.
What is the Social Security wage base for 2025?
The Social Security wage base for 2025 is $176,100. Social Security tax at 6.2% applies to wages up to this amount, and withholding stops once cumulative wages exceed $176,100 for the year. Medicare has no wage base limit and continues at 1.45% on all wages. Employers withhold an additional 0.9% Medicare surtax on wages above $200,000 regardless of filing status; final liability thresholds are $250,000 for married filing jointly and $125,000 for married filing separately.
Why does my Arkansas withholding differ from my actual state income tax?
Employer withholding is an estimate produced by the DFA formula based on your AR4EC exemptions. Your final Arkansas income tax is computed on Form AR1000F using your actual taxable income, deductions, credits, and any additions or subtractions, and it may use the low-income tax tables that withholding does not model. If you have significant non-wage income or claimed too many exemptions, withholding can fall short and produce a balance due. Adjusting AR4EC exemptions or adding extra withholding fixes most gaps.
What To Do Next
If your Arkansas paycheck estimate looks off, first confirm the exemptions on your Form AR4EC, and remember that exemptions move the check only about $29 per year each because they are a tax credit, not a wage deduction. If you live inside the Texarkana city limits, make sure your employer has your Form AR4EC(TX) so no Arkansas tax is withheld. Then check whether pre-tax benefit deductions (401k, health insurance) are lowering your taxable wages. To see how your withholding connects to your year-end return, read the Arkansas Payroll Taxes guide and our How Payroll Taxes Work guide.
For hourly workers who also receive overtime, the Hourly Paycheck Calculator lets you model specific hours and frequencies. For a generic multi-state view, use the Paycheck Calculator. To understand every line item on your Arkansas pay stub, see our How to Read a Pay Stub guide.
If you have self-employment income in addition to wages, the 1099 Tax Calculator estimates your full federal tax burden including self-employment tax. If you need to estimate quarterly payments on that income, use the Quarterly Tax Calculator. To track a filed Arkansas refund, use the Arkansas Refund Tracker.
Sources & Editorial Disclosure
- Arkansas Department of Finance and Administration, Withholding Tax Formula Method (Effective 01/01/2026), $2,470 standard deduction, brackets to a 3.7% top rate, $50 midrange lookup, $29 personal tax credit per exemption
- USDA National Finance Center, Arkansas State Income Tax Withholding (NFC-25-1736280741, Effective Pay Period 07, 2025), mirrors the DFA 2025 formula: $2,410 standard deduction, brackets to a 3.9% top rate, full bracket-adjustment phase-out table, $29 credit per exemption
- Arkansas DFA, Form AR4EC, Employee's Withholding Exemption Certificate, exemptions and the zero-exemption default for employees with no AR4EC on file
- Arkansas DFA, Subject 302, Border City Exemption (Texarkana), Act 48 of 1977 exemption for residents inside the Texarkana city limits, Form AR4EC(TX)
- Arkansas Division of Workforce Services, Employer UI Contributions, employer-funded unemployment insurance on the first $7,000 of wages (2025 and 2026)
- IRS Publication 15-T (2025), Employer's Tax Guide to Federal Income Tax Withholding
- IRS Topic 751, Social Security and Medicare Withholding Rates
- Social Security Administration, 2025 Wage Base ($176,100)
- Authored by Munib Ur Rehman · Reviewed by Nausheen Shahid, LMN Tax Inc. Not affiliated with the IRS or the Arkansas Department of Finance and Administration. For informational purposes only.