Arkansas charges 2-3.9% state income tax. Use the cost of living calculator pre-loaded with Arkansas rates.
Open Cost of Living Calculator →Arkansas's cost of living index is 86, and the graduated (2-3.9%) state tax further affects how far your dollar goes. The low cost of living partially compensates for state taxes, making Arkansas affordable despite the tax burden. This calculator factors in both taxes and cost of living for Arkansas.
Arkansas uses a graduated income tax with brackets ranging from 2-3.9%. Lower income is taxed at lower rates, with the 3.9% top rate applying only to income in the highest bracket. This progressive structure means your effective state tax rate is always lower than the top marginal rate. Arkansas does not have local income taxes, so the state graduated rate is the total state-level income tax burden.
The table below shows what you actually keep at five salary levels in Arkansas, accounting for federal tax, FICA, and Arkansas's graduated (2-3.9%) state tax.
See how Arkansas compares to other South states. Each link takes you to the cost of living calculator landing page for that state.
For a comprehensive breakdown of Arkansas’s tax structure, salary comparisons, cost-of-living analysis, and more, visit the full Arkansas take-home pay page.