Arkansas payroll taxes

Arkansas state income tax: Progressive rates ranging from 0%–3.9% (top rate 3.9% for 2024–2025). Employers withhold using Arkansas tables/forms.
Federal income tax (FIT): Withheld per IRS rules based on your Form W-4.
FICA: Social Security and Medicare; see “Arkansas Federal Insurance Contributions Act (FICA)” below.
State Unemployment Insurance (SUI): Employer-paid only in Arkansas. Employees do not pay UI contributions from wages. The taxable wage base currently is $7,000; experienced employer rates vary; new-employer rate commonly ~2.0% (plus small admin assessment if applicable).
Local income taxes: None. Arkansas law prohibits cities/counties from levying local income taxes on wages.
Pre-tax deductions: 401(k), HSA/FSA, Section 125 premiums can reduce taxable wages where eligible.
Post-tax deductions: Roth 401(k), garnishments, and after-tax benefits reduce net pay after taxes.

How Your Arkansas Paycheck Works

Start with gross pay (salary per period or hourly rate × hours, including overtime if due).
Subtract pre-tax items (traditional 401(k), HSA/FSA, cafeteria plans).
Calculate FICA (Social Security to the federal wage base; Medicare on all wages; Additional Medicare for high earners).
Compute federal withholding using IRS methods and your W-4 elections.
Compute Arkansas income tax using AR brackets/tables (0%–3.9%).
Arkansas SUI is paid by employers; it does not reduce your paycheck.
Subtract post-tax deductions to arrive at net pay.

Arkansas unemployment insurance (SUI) — 10 years snapshot

Arkansas funds UI via employer payroll taxes. Employees do not contribute. The table shows the taxable wage base and common notes by year.

Year	Taxable Wage Base	Employee Pays?	New Employer Rate (typical)	Experienced Rate Range / Notes
2016	$12,000	No	~3.1%	Varies by schedule
2017	$12,000	No	~3.1%	Varies by schedule
2018	$10,000	No	~3.1%	Varies by schedule
2019	$10,000	No	~3.2%	Varies by schedule
2020	$7,000	No	~2.9%	Experienced range set annually
2021	$10,000	No	~2.9%	Experienced range set annually
2022	$10,000	No	Varies	Experienced range set annually
2023	$7,000	No	~2.0%	Experienced range set annually
2024	$7,000	No	~2.0%	Experienced range set annually
2025	$7,000	No	~2.0%	Approx. 0.20%–10.10% + 0.1% admin assessment

Arkansas salary threshold

Arkansas follows the federal Fair Labor Standards Act (FLSA) for white-collar exemptions. Use the current federal salary thresholds and duties tests when deciding exempt/non-exempt status. Always verify the latest federal threshold in effect for the pay period.

Median Household Income — Arkansas (Real, 2024 dollars, 10 years)

Real (inflation-adjusted) median household income for Arkansas, shown in 2024 dollars:

Year	Real Median Household Income
2015	$55,130
2016	$58,610
2017	$62,420
2018	$61,230
2019	$66,100
2020	$60,900
2021	$58,310
2022	$57,540
2023	$64,880
2024	$64,840

Arkansas Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the federal wage base.
Medicare: 1.45% employee + 1.45% employer, no wage cap.
Additional Medicare: 0.9% employee-only on wages above $200,000 (single filer threshold for withholding).

Number of cities that have local income taxes

Arkansas does not allow local governments to levy wage or income taxes, so paychecks are not subject to city or county income taxes. Employers withhold federal taxes, Arkansas state income tax, and any elected deductions. Municipal revenues rely on sales and property taxes rather than payroll-based income taxes in Arkansas.

Local income tax table

City/County	Local income/occupational tax rate	Notes
None — Arkansas municipalities are prohibited from imposing local income taxes on wages.

Arkansas Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Arkansas follows FLSA—most non-exempt employees earn 1.5× the regular rate after 40 hours in a workweek (no statewide daily overtime rule).
Pay frequency: Wages must be paid at least semi-monthly on regular paydays.
Minimum wage: $11.00 per hour (statewide).

Additional Arkansas forms

AR4EC / AR4ECSP: Employee’s Arkansas Withholding Exemption Certificate(s).
Withholding tables/updates: Arkansas DFA income-tax withholding tables.
Employer UI contributions: Arkansas Division of Workforce Services (DWS) employer UI portal and rate notices.
Required workplace posters: Arkansas minimum wage/overtime and federal posters.

FAQs — Arkansas Salary Paycheck Calculator

How do I use an Arkansas Salary Paycheck Calculator to estimate net pay?

Enter gross pay and pay frequency, your federal W-4 details, pre-tax items (401(k), HSA/FSA), and any post-tax deductions. The calculator applies FICA, federal withholding, Arkansas’s 0%–3.9% state income tax, and excludes local income taxes. Employer-paid SUI doesn’t reduce your take-home.

Does Arkansas have local income or occupational taxes taken from paychecks?

No. Arkansas prohibits local income taxes, so your paycheck will not include a city or county wage tax anywhere in the state.

Why doesn’t my Arkansas paycheck show unemployment tax like friends in some other states?

Because Arkansas funds unemployment insurance entirely with employer contributions. Employees do not pay UI from their wages, so there’s no UI line on your pay stub.

What are the current Arkansas income tax rates used for withholding?

For recent years, the highest bracket rate is 3.9%, with 0% on the lowest bracket. The state uses separate tables for incomes above and below a threshold; employers follow DFA withholding guidance.

What salary makes me exempt from overtime in Arkansas?

Arkansas uses the federal FLSA white-collar tests. Exemption depends on meeting both the federal salary threshold in effect and the duties tests. If either test isn’t met, overtime is due after 40 hours in a week.

How often must Arkansas employers pay employees?

At least semi-monthly on regular, established paydays. Employers may pay more frequently (e.g., biweekly or weekly) but not less frequently.

What’s the Arkansas minimum wage and does it affect salaried employees?

Statewide minimum wage is $11.00/hour. Salaried non-exempt employees’ salaries must yield at least the minimum wage for all hours worked, and overtime must be paid after 40 hours in a week.

Are bonuses and commissions taxed differently on an Arkansas paycheck?

For federal purposes, employers may use IRS supplemental-wage methods. Arkansas state income tax still applies at the applicable rates (up to 3.9%). FICA applies, and employer SUI continues until the annual state wage base is reached (employer cost only).

Where can I get official Arkansas forms and rates?

See the Arkansas Department of Finance & Administration (DFA) for withholding tables and forms (AR4EC, etc.) and the Division of Workforce Services for SUI wage base, rate notices, and employer portal access.

This guide is informational only and not legal or tax advice. Confirm current rules with Arkansas DFA, DWS, and the U.S. Department of Labor.

Arkansas Salary Paycheck Calculator