- Home
- Arkansas Paycheck Calculator
Arkansas Paycheck Calculator
Estimate Your Arkansas Net Pay
Did you know Arkansas lowered its top income tax rate to 4.4% in 2025, saving residents thousands compared to just five years ago? Whether you’re an employee wondering what’s left of your paycheck after taxes or an employer navigating payroll compliance, understanding your take-home pay in the Natural State is key to financial success. Our Arkansas Paycheck Calculator 2025 is your one-stop tool to calculate your net pay, optimize deductions, and plan your budget with confidence. From hourly workers to salaried professionals and from small business owners to HR managers, this guide breaks down everything you need to know about Arkansas paychecks in simple terms.
Arkansas Salary Calculations
Want quick answers to common paycheck questions? Below are instant calculations for some of the most popular salary scenarios in Arkansas for 2025, factoring in federal and state taxes, FICA, and standard deductions. Each result includes a breakdown of gross pay, taxes, and take-home pay for clarity.
How much is $50,000 after taxes in Arkansas?
For a single filer earning $50,000 annually, expect approximately $40,697 in take-home pay after federal income tax (12–22% brackets), Arkansas state income tax (2–3.9%), and FICA (7.65% for Social Security and Medicare). Exact amounts depend on filing status, allowances, and deductions like 401(k) or HSA contributions.
How much is $80,000 after taxes in Arkansas?
A single filer earning $80,000 annually takes home roughly $60,000–$61,500 after federal and state taxes, plus FICA. Married filers may see higher net pay due to larger standard deductions.
How much is $720 after taxes in Arkansas?
For a weekly paycheck of $720 (about $37,440 annually), a single filer’s take-home pay is approximately $580–$600 per week after taxes and FICA, assuming standard withholding. Use our Arkansas Paycheck Calculator above to customize these results based on your income, filing status, and deductions.
Understanding Arkansas Taxes in 2025
Arkansas’s tax system is unique, and understanding it is the first step to maximizing your paycheck. Let’s break down the key components of the state’s tax landscape for 2025, including how it compares to neighboring states and what makes the Natural State stand out.
Arkansas Income Tax Structure
Arkansas uses a progressive income tax system, with rates ranging from 2% to 3.9% in 2025, down from 4.4% in previous years. Rates and brackets vary slightly for married filers or heads of household. Use our Arkansas Paycheck Calculator with Taxes to see your exact tax liability. Here’s a simplified look at the 2025 tax brackets for single filers:
Arkansas Income Tax Brackets
| Taxable Income | Tax Rate |
|---|---|
| $0–$5,100 | 2% |
| $5,101–$10,300 | 3% |
| $15,599–$25,699 | 3.4% |
| $25,700–$87,000 | 3.9% |
Texarkana Border City Exemption
If you live or work in Texarkana, Arkansas, you’re exempt from Arkansas state income tax on income earned in Texarkana, thanks to a unique border city agreement with Texarkana, Texas. This can boost your take-home pay significantly, especially for lower-income earners.
What Makes Arkansas Unique
Arkansas, known as the Natural State, offers tax advantages like low property taxes and no estate tax, making it attractive for retirees and families. However, its lack of reciprocity agreements with neighboring states can complicate taxes for cross-border workers. County-level taxes are minimal but may impact deductions for specific locales. According to the U.S. Census Bureau, Arkansas’s median household income is $69,000 in 2025, trending upward, which means paychecks stretch further in this low-cost-of-living state.
Your Arkansas Paycheck Breakdown
Your paycheck isn’t just your salary—it’s what’s left after federal and state taxes, FICA, and other deductions. Here’s a clear breakdown of what’s taken out and how to optimize your take-home pay.
Federal Tax Components
Your Arkansas paycheck starts with federal taxes, which apply to all U.S. residents. Key components include:
FICA (Federal Insurance Contributions Act): This covers Social Security (6.2% on income up to $168,600 in 2025) and Medicare (1.45% on all income, plus an additional 0.9% for high earners). For a $50,000 salary, FICA takes about $3,825 annually.
Federal Income Tax: Based on IRS tax brackets (10–37%), your withholding depends on your income and Form W-4 settings. For 2025, the standard deduction is $14,600 for single filers, reducing taxable income.
Form W-4 Optimization: The 2025 Form W-4 lets you adjust withholdings based on dependents, other income, or deductions. Claiming more allowances reduces withholding, increasing your take-home pay but potentially leading to a smaller refund.
Arkansas State Tax Withholding
Arkansas uses Form AR4EC for state tax withholding, which differs slightly from the federal Form W-4. Key differences:
Arkansas allows specific exemptions (e.g., for low-income earners or Texarkana residents).
Filing status (single, married, or head of household) impacts your state tax rate significantly. For example, married filers with dependents may owe less due to higher exemptions.
Example: A single filer earning $40,000 annually pays about $1,200 in Arkansas state taxes, while a married filer with two dependents might pay closer to $800, assuming similar deductions.
Additional Deductions and Benefits
Maximize your paycheck with these options:
Pre-Tax Deductions: Contributions to a 401(k), HSA, or health plans reduce taxable income. For example, contributing $3,000 to an HSA saves about $660 in federal and state taxes for a single filer in the 22% bracket.
Post-Tax Deductions: Roth 401(k) contributions or life insurance premiums don’t reduce taxes now but offer long-term benefits.
Arkansas-Specific: Some employers offer commuter benefits, though these are less common in Arkansas than in urban states.
Employers can optimize budgets by offering pre-tax benefits and boosting employee take-home pay.
Different Arkansas Paycheck Calculation Scenarios
Our Arkansas Paycheck Calculator supports various scenarios to fit your unique situation. Here’s how different pay structures and circumstances affect your take-home pay.
Salary vs. Hourly Calculations
Your pay frequency impacts cash flow:
Weekly Paychecks (52 pay periods): A $720 weekly paycheck ($37,440 annually) yields about $550–$580 after taxes for a single filer.
Bi-Weekly vs. Semi-Monthly: Bi-weekly (26 pay periods) spreads taxes evenly, while semi-monthly (24 pay periods) may result in slightly larger checks but fewer payments.
Monthly Paychecks: Best for budgeting, as taxes are withheld in larger chunks but less frequently.
Try our Interactive Comparison Tool to see how a $50,000 annual salary looks across weekly, biweekly, semi-monthly, or monthly pay frequencies.
Overtime and Bonus Calculations
Overtime Pay: Arkansas follows the Fair Labor Standards Act, requiring 1.5x pay for hours over 40 per week for non-exempt employees. For a $20/hour worker, overtime pay is $30/hour, but taxes (up to 22% federal supplemental rate) reduce the net gain.
Bonus Tax: Bonuses are taxed as supplemental wages, often at a flat 22% federal rate plus Arkansas’s 4.4% top rate. A $5,000 bonus might yield $3,600 after taxes.
Use our net pay calculator to calculate regular pay, overtime, and bonuses together.
Multi-State Considerations
If you live in Arkansas but work in Tennessee, Mississippi, Louisiana, Texas, Oklahoma, or Missouri, you may face taxes in both states due to Arkansas’s lack of reciprocity agreements. For example, working in Tennessee (no state income tax) means you only pay Arkansas taxes on that income. Our calculator adjusts for multi-state scenarios, ensuring accurate take-home pay estimates.
Arkansas Payroll for Employers
Running payroll in Arkansas requires compliance with state and federal regulations. Here’s a comprehensive guide for employers.
Arkansas Payroll Tax Requirements
Arkansas Quarterly Contribution Report (AR DWS-ARK-209B): Filed quarterly for unemployment taxes.
Form AR4EC: Used for employee state tax withholding setup.
Wage and Tax Statement: Provide W-2s annually to employees.
Payment Frequencies: Monthly or annual, depending on payroll size. Small employers may qualify for annual filings.
Arkansas Unemployment Tax: Rates range from 0.1% to 14%, with new employers paying 3.1% on the first $7,000 of wages per employee.
Federal Payroll Compliance
FUTA (Form 940): Federal unemployment tax is 0.6% on the first $7,000 of wages after credits.
Form 941: Quarterly federal tax return for income tax, Social Security, and Medicare withholdings.
Pay Stub Requirements: Arkansas law requires detailed pay stubs showing gross pay, deductions, and net pay.
Minimum Wage: Arkansas’s minimum wage is $11.00/hour in 2025, higher than the federal $7.25.
Maximize Your Arkansas Paycheck
Boost your take-home pay with these strategies crafted for Arkansas residents.
Tax Optimization Techniques
Adjust Withholdings: Use Form W-4 and AR4EC to claim appropriate allowances, reducing over-withholding. For example, adding one dependent can increase your monthly take-home pay by $50–$100.
Pre-Tax Contributions: Max out 401(k) ($23,000 limit in 2025) or HSA ($4,150 for individuals) to lower taxable income.
Year-End Planning: Defer bonuses to January or increase deductions before December 31 to optimize Arkansas’s 3.9% top rate.
Financial Planning Integration
Budget Planning: Use our calculator to estimate take-home pay and allocate funds for rent, groceries, and savings. Arkansas’s low cost of living (86% of the national average) means your paycheck goes further.
Savings Strategies: Aim for an emergency fund (3–6 months of expenses) and contribute to retirement plans for long-term security.
Arkansas Paycheck Calculator FAQ's
Gross pay is your total earnings before deductions. Net pay (take-home pay) is what’s left after taxes, FICA, and other deductions.
Arkansas’s 3.9% top tax rate is higher than Tennessee or Texas (no income tax) but lower than many states. Its low cost of living offsets the tax burden.
Monthly paychecks simplify budgeting, but weekly or bi-weekly provide more frequent cash flow. Use our calculator to compare.
Texarkana residents are exempt from Arkansas state income tax on income earned in the city, saving 2–4.4% on taxes.
File AR DWS-ARK-209B quarterly, provide W-2s, and ensure pay stubs meet state requirements. Consult a payroll service for complex setups.