Arkansas State Income Tax Withholding
Last Updated: January 2026
Overview
Arkansas uses a progressive income tax system with multiple brackets. The state has been gradually reducing its top marginal rate in recent years as part of ongoing tax reform efforts.
2026 Tax Rates
Arkansas uses a progressive rate structure with the following brackets:
| Taxable Income | Tax Rate |
|---|---|
| $0 - $5,100 | 0% |
| $5,101 - $10,300 | 2.0% |
| $10,301 - $15,500 | 3.0% |
| $15,501 - $24,700 | 3.4% |
| $24,701 and over | 3.9% |
Top Marginal Rate: 3.9%
Deductions and Exemptions
| Deduction Type | Amount |
|---|---|
| Standard Deduction | $2,470 |
| Personal Tax Credit | $29 per exemption |
Arkansas uses a tax credit system rather than personal exemptions to reduce tax liability.
Special Considerations
State W-4 Form
Arkansas uses Form AR4EC for state withholding allowances. Employees should complete this form to ensure accurate withholding.
Tax Tables
Arkansas provides withholding tax tables that employers use to calculate the correct amount to withhold based on wages and filing status.
No Local Income Taxes
Arkansas does not impose local income taxes. State withholding applies uniformly across all jurisdictions.
Military Personnel
Arkansas provides special exemptions for military retirement pay and certain military income.