The formulas
- Taxable income = income - standard deduction - personal exemptions (when applied), not below zero
- Tax = rate x net taxable income - bracket adjustment (DFA 2026 formula)
- 0% to $5,599; 2% from $5,600; 3% from $11,200; 3.4% from $16,000; 3.7% from $26,400
- From $94,701 to $97,600 the adjustment falls by $10 per $100; above $97,600 tax = 3.7% x income - $79.90
- Personal tax credit: $29 each; two on a joint or head of household return
- Arkansas income tax = tax from the rate schedule - credits
How it works
Tax year: 2026 rates and brackets; 2025 standard deduction and exemption amounts, the latest the state has published.
Arkansas taxes income at 2 to 3.7 percent. Enter income before state deductions and choose whether to apply the state standard deduction and personal exemptions, or enter taxable income and switch them off. The tool computes state income tax only; credits other than those named are not applied.
Arkansas cut its top rate to 3.7 percent for 2026. The Department of Finance and Administration publishes the 2026 tax as a rate times net taxable income less an adjustment, so lower-bracket benefits fade out between $94,701 and $97,600. Above $97,600 the tax equals 2 percent on the first $4,700 and 3.7 percent on the rest.
The standard deduction is $2,470 single, head of household or surviving spouse, $4,940 married filing jointly and $2,470 for each spouse filing separately, as listed in the 2025 Form AR1000F instructions; the 2026 withholding formula keeps $2,470. Each personal exemption is a $29 credit against tax, and a head of household or surviving spouse claims an extra credit. The rate formula is the one DFA publishes for 2026 withholding; the 2026 return tax tables round income to $50 bands, so the return figure can differ by a dollar or two.
Local taxes: Arkansas cities and counties do not levy a local income tax.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
What is the Arkansas income tax rate for 2026?
Arkansas taxes income at 2 to 3.7 percent for 2026. Tax = rate x net taxable income - bracket adjustment (DFA 2026 formula).
What is the Arkansas standard deduction?
Single: $2,470; Married filing jointly or surviving spouse: $4,940; Head of household: $2,470; Married filing separately: $2,470 (2025, at low income).
Are there local income taxes in Arkansas?
Arkansas cities and counties do not levy a local income tax.
Sources
- Arkansas DFA withholding tax formula, tax year 2026
- Arkansas DFA 2025 Form AR1000F and AR1000NR instructions (standard deduction, personal credits)
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