Does Arkansas have a state income tax?

Yes. Arkansas has a state income tax with a top rate of 3.9%.

How much is Arkansas state tax on a $100,000 salary?

On a $100,000 salary in Arkansas, state income tax is approximately $3,809. Your estimated total take-home pay is $75,371/year.

What other taxes does Arkansas have?

Arkansas has a 6.5% state sales tax with local add-ons bringing combined rates to 9.46% on average (Little Rock 9%, Fayetteville 9.75%). Property tax averages 0.61% effective — among the lowest in the country. Arkansas has no estate tax. Arkansas allows itemized deductions following federal Schedule A modified for state add-backs (state income tax NOT deductible on AR return). Federal income tax NOT deductible on AR return. Personal exemption credit $29 single / $58 MFJ (modest). Arkansas allows a $6,000 retirement income exemption per filer.

How does Arkansas compare to other states for taxes?

Arkansas's top rate of 3.9% compares favorably — below the national median for state income taxes.

What is Arkansas's income tax rate?

Arkansas has 3 brackets: 2% on first $5,300, 4% on $5,300-$10,600, and 3.9% top rate above $25,000 (single filer). The structure is unusual — the 4% bracket appears HIGHER than the 3.9% top, but this is a quirk of Arkansas's Net Income Tax rate vs Earned Income Tax rate calculations. Most professionals are effectively in the 3.9% top bracket. The phase-down from 4.7% in 2023 to 3.9% in 2026 represents Arkansas's largest income tax cut in modern history.

What is Arkansas's retirement tax treatment?

Arkansas allows a $6,000 retirement income exemption per filer. So a married couple receives $12,000 exempt from AR tax on combined retirement income. Combined with Social Security exemption (AR doesn't tax SS), retirees with $40K-$60K annual retirement income may pay essentially zero AR state tax. Arkansas also offers a Senior Real Estate Tax Deferral program for property tax (income-tested).

How does Arkansas compare to its neighbors for taxes?

AR's 3.9% top is meaningfully lower than MO's 4.95% and OK's 4.75%, comparable to LA's 4.25%, and dramatically lower than IL's 4.95%. AR's property tax (0.61%) is lower than MO/OK (0.83%) but higher than TN (0.48%). For working professionals, AR is genuinely competitive vs neighbors. The standout structural feature: NW Arkansas (Bentonville/Fayetteville/Rogers) has substantial Walmart corporate workforce + Tyson HQ Springdale + JB Hunt Lowell — a uniquely concentrated Fortune 500 corporate cluster for a small state.

Are there local Arkansas income taxes?

No. Arkansas has no city or county income tax. Sales tax stack is the offset — Fayetteville 9.75%, Little Rock 9%, Conway 9%. Property tax stays low (0.61% effective) but state-level taxes (income + sales) are progressive without local-tax stacking.

State Tax Guide

Arkansas State Income Tax Guide (2026)

Arkansas has a 3-bracket progressive income tax topping at 3.9% (2026 rate, phased down from 4.7% in 2023) — a meaningfully low-tax Southeast option anchored by Walmart and Tyson HQs.

Top State Rate

3.9%

$100k Take-Home

$75,371

/year (single)

State Tax on $100k

$3,809

single filer

Arkansas Income Tax Brackets (2026)

Marginal Rate	Taxable Income (Single Filer)
2%	$0→$5,300
4%	$5,300→$10,600
3.9%	$10,600→All income above $25,000

Each rate applies only to income within that bracket. Your effective rate is the average across all brackets — meaningfully lower than your top marginal rate.

Standard deduction: $2,340 single / $4,680 married filing jointly

Brackets reflect the most recently published schedules. Some states inflation-index thresholds annually — specific 2026 amounts may shift slightly. Verify with your state's Department of Revenue before filing.

$100,000 Salary in Arkansas — Full Tax Breakdown

Category	Annual	Monthly
Gross Salary	$100,000	$8,333
Federal Tax	−$13,170	−$1,098
FICA (SS + Medicare)	−$0.00	−$0.00
Arkansas State Tax	−$3,809	−$317
Take-Home Pay	$75,371	$6,281

Assumes single filing status, standard deduction, no 401(k) or HSA contributions. 2026 tax year.

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The 30-second version

1.Arkansas has 3 progressive brackets: 2% / 4% / 3.9% top above $25K (single). The 3.9% rate represents Arkansas's largest income tax cut — phased down from 4.7% in 2023.
2.NW Arkansas (Bentonville / Fayetteville / Rogers / Lowell) hosts a uniquely concentrated Fortune 500 corporate cluster: Walmart HQ Bentonville, Tyson HQ Springdale, JB Hunt Lowell, Sam's Club Bentonville. Substantial corporate professional employment.
3.Property tax 0.61% effective — among the lowest in the country (5th-lowest nationally).
4.Sales tax stack 9-10% combined — moderate to high. Fayetteville 9.75%, Little Rock 9%.
5.Major employers: Walmart Inc. HQ Bentonville (1.6M+ US employees), Tyson Foods HQ Springdale, JB Hunt Lowell, Sam's Club Bentonville, Murphy Oil, Dillard's HQ Little Rock, University of Arkansas Fayetteville, Arkansas Children's Hospital. Retail HQ + agriculture + healthcare anchor.

Why you can trust these numbers

Numbers reflect 2026 IRS federal brackets, FICA caps, and Arkansas Department of Finance and Administration progressive brackets per the 3.9% phase-down. The calculator at the top of this page applies AR's progressive rates accurately. Arkansas conforms to federal AGI starting point — federal pre-tax 401(k) and HSA contributions reduce AR taxable income identically. Standard deduction $2,340 single / $4,680 MFJ (notably small vs $15K federal — most filers should consider itemizing on AR if they itemize federally).

Sources: federal brackets + standard deduction from IRS Rev. Proc. 2025-32; state brackets verified against the Tax Foundation 2026 State Income Tax Rates compilation and the Arkansas Department of Revenue's published 2026 schedule.

Our honest opinion (which is just an opinion)

Arkansas is a meaningfully low-tax state with strong corporate professional employment in NW Arkansas (Walmart, Tyson, JB Hunt, Sam's Club). Tax rates are below most of the country (3.9% top vs 5%+ in most states) and property tax is among the lowest. The structural combination of low income tax + low property tax + corporate Fortune 500 employment density (in NW Arkansas) makes AR genuinely competitive for working professionals + retirees.

The case for Arkansas:

3.9% top tax — meaningfully below national average
Property tax 0.61% effective — among lowest in nation (5th-lowest)
$6,000 retirement income exemption per filer at any age
Social Security + military retirement fully exempt
NW Arkansas Fortune 500 corporate cluster (Walmart + Tyson + JB Hunt + Sam's Club)
Cost of living among the lowest in the country

The case against:

Sales tax stack 9-10% combined — moderate to high
Standard deduction modest ($2,340 single)
Federal tax NOT deductible (unlike neighboring AL, MO)
Tornado risk real — property insurance considerations
Limited high-comp white-collar career mobility outside NW Arkansas
NW Arkansas housing has appreciated significantly post-2020 (Bentonville/Fayetteville more competitive)

Honest take: Arkansas is genuinely competitive for working professionals — especially NW Arkansas (Walmart corporate, Tyson, JB Hunt) Fortune 500 employment + Little Rock healthcare/government + Fayetteville education. For retirees with paid-off housing + retirement income exemption, AR is among the better retirement deals in the Southeast. The 3.9% top tax + 0.61% property tax combination is structurally favorable; sales tax is the offset on retail spending.

Sources & further reading

A few honest notes

Not personal tax, legal, or financial advice. Verify with a licensed CPA, EA, or tax attorney before making meaningful decisions.
Tax law changes. This guide reflects 2026 IRS schedules and current Arkansas Department of Finance and Administration rules per the 3.9% phase-down.
Arkansas standard deduction is small ($2,340 single) — itemizing on AR is often beneficial if you itemize federally.
Property tax estimates vary by county and city. Pull actual bills from your county tax assessor's website.
Arkansas Brighter Futures 529 offers up to $5,000 single / $10,000 MFJ state-tax deduction — modest but real for parents.
The numbers are illustrative — scenarios don't include every credit, deduction, or wrinkle that might apply to you.
No client relationship is created by reading this page.

Last updated April 2026 with 2026 IRS schedules and current Arkansas Department of Finance and Administration guidance.