Calculate your 2026 Arkansas state income tax. Two-table system: standard (2%–3.9%) and low-income (<$24K). Standard deduction $2,270/$4,540. Rate reduction timeline.
Arkansas Income Tax 2026
Arkansas uses a dual-table system. The standard table has 3 brackets topping at 3.9%. For taxpayers with net income under $24,000, a low-income table provides lower effective rates.
Calculation Formula
AR Net Income = Gross Income − Standard Deduction ($2,270 single / $4,540 MFJ)
If AR Net Income < $24,000: Use low-income tax table
If AR Net Income ≥ $24,000: Use standard table (2%/4%/3.9%)
Standard table: 2% × $0–$4,999 + 4% × $5,000–$9,999 + 3.9% × above $9,999
Example: Single filer, $55,000
AR net income: $55,000 − $2,270 = $52,730
2% on $4,999 = $100
4% on $5,000 = $200
3.9% on $42,731 = $1,667
AR Tax: $1,967 | Effective rate: 3.58%
Frequently Asked Questions
What are Arkansas's income tax rates for 2026?
Arkansas has two tax tables for 2026. The standard table applies to most taxpayers: 2% on $0–$4,999; 4% on $5,000–$9,999; 3.9% (top rate) on income above $9,999. A separate low-income tax table applies to net income under $24,000 with reduced or zero rates at lower income levels. The 3.9% top rate reflects Arkansas's ongoing reduction from its historical 7% rate.
What is the Arkansas standard deduction?
The Arkansas standard deduction for 2026 is $2,270 for single filers and $4,540 for married filing jointly. Arkansas also allows personal exemptions that further reduce taxable income. These deductions are much lower than federal amounts, which means more of your income is taxable at the state level compared to the federal calculation.
Is Arkansas planning to eliminate its income tax?
Arkansas has been aggressively reducing its income tax. The top rate was 7% in 2017, then cut to 5.9%, 5.3%, 4.9%, 4.7%, 4.4%, and now 3.9% in 2026. Arkansas legislators have expressed intent to continue cutting the rate, potentially targeting zero — though no specific zero-rate timeline has been enacted. Arkansas's path mirrors what Arizona achieved with its flat tax transition.
Who uses the Arkansas low-income tax table?
The low-income tax table applies to taxpayers whose Arkansas net income is less than $24,000. Under this table, the first several thousand dollars may be taxed at 0% or reduced rates. This provides significant relief for lower-income Arkansans. If your income exceeds $24,000, you use the standard tax table regardless of filing status.
How does Arkansas income tax compare to neighboring states?
Arkansas at 3.9% is now among the more competitive in the South. Tennessee and Texas have no income tax. Mississippi tops at 4.7% (with phased reductions). Missouri is 4.95%. Oklahoma is 4.5%. Louisiana went flat at 3%. For the mid-South region, Arkansas is now competitive and its continued rate reductions have attracted positive attention from businesses and retirees.