Arkansas Hourly Paycheck Calculator
Your hourly rate and hours in, your take-home pay out. Overtime is paid at 1.5× your rate; tips you report are taxed like wages.
| Per paycheck | Amount | Per year |
|---|---|---|
| Gross pay | $1,600.00 | $41,600.00 |
| Federal income tax · withheld | −$108.15 | −$2,812.00 |
| Social Security (6.2%) | −$99.20 | −$2,579.20 |
| Medicare (1.45%) | −$23.20 | −$603.20 |
| Arkansas income tax · withheld | −$40.46 | −$1,051.96 |
| Take-home pay | $1,328.99 | $34,553.64 |
How the federal income tax was worked out
| Pay subject to income tax, for the year · $1,600.00 × 26 paychecks | $41,600.00 |
| Minus the IRS withholding allowance · Pub 15-T Worksheet 1A, line 1g | −$8,600.00 |
| Adjusted yearly wage | $33,000.00 |
| Tax from the IRS yearly table · standard table | $2,812.00 |
| Federal income tax per paycheck · divided by 26 | $108.15 |
IRS Publication 15-T (2026), Worksheet 1A — the percentage method payroll software uses for a Form W-4 from 2020 or later. Your employer's figure can differ by a few cents because of rounding.
How the Arkansas income tax was worked out
| Pay subject to Arkansas tax, for the year · this paycheck × 26, after pre-tax 401(k) and benefits | $41,600.00 |
| Minus Arkansas standard deduction | −$2,470.00 |
| Net taxable income | $39,130.00 |
| Income used for the table · the $50 midrange of its $100 range | $39,150.00 |
| × 3.7% · table row from $26,400 | $1,448.55 |
| Minus the row's adjustment | −$367.16 |
| Yearly gross tax · $1,081.39 rounded to the whole dollar | $1,081.00 |
| Minus personal tax credits · 1 × $29.00 (AR4EC) | −$29.00 |
| Yearly Arkansas tax | $1,052.00 |
| Arkansas income tax this paycheck · ÷ 26 | $40.46 |
Hourly pay in Arkansas
Arkansas's minimum wage is $11.00 an hour for employers with 4 or more employees. Tipped employees can be paid $2.63 an hour in cash as long as tips bring them up to $11.00. When both state and federal law cover an employer, the higher minimum wage applies.
Overtime. In most jobs, hours over 40 in a workweek are paid at time and a half.
Tips and overtime on your Arkansas tax. Reported tips and overtime pay are part of your wages for the state formula.
Bonuses. Your employer can withhold a flat 3.7% from a bonus or commission paid on its own.
Because hours change from week to week, your withholding changes too: a week with lots of overtime is withheld as if you earned that much every week, so more comes out. It usually evens out when you file your return.
What comes out of a Arkansas paycheck
- Federal income tax withholding — worked out from your pay and your Form W-4, using the IRS tables for 2026.
- Social Security — 6.2% of your pay, up to $184,500 of pay in 2026. Above that, it stops for the rest of the year.
- Medicare — 1.45% of all your pay, plus 0.9% on pay above $200,000 in the year.
Arkansas has a graduated income tax. For 2026 the top rate is 3.7%, down from 3.9%. Employers work out withholding with the Department of Finance and Administration's formula:
- Take your pay subject to income tax for this paycheck — after a traditional 401(k) and pre-tax health insurance — and multiply it by your number of paychecks in a year.
- Subtract the standard deduction of $2,470. What's left is your net taxable income. Below $100,001, it is read at the middle of its $100 range — so anything from $25,000 up to (but not including) $25,100 counts as $25,050.
- Multiply by the rate for that row of the table (2%, 3%, 3.4% or 3.7%) and subtract the row's adjustment amount. Round to the whole dollar.
- Take off $29 for each exemption on your AR4EC.
- Divide by your number of paychecks.
The only state line in this calculator for an Arkansas paycheck is income tax. Your employer pays the state's unemployment insurance tax on the first $7,000 of your pay each year.
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- Arkansas Department of Finance and Administration — Withholding Tax Formula Method (Effective 01/01/2026) — $2,470 standard deduction; $50 midrange below $100,001; rates 0%–3.7% with adjustment amounts; round the annual gross tax; $29 personal credit per AR4EC exemption; worked example ($2,127 monthly, 2 exemptions → $36.50)
- Arkansas DFA — Form AR4EC, Employee's Withholding Exemption Certificate (R 12/04/2025) — 1 exemption for yourself, 2 for yourself and spouse or head of household, 1 per dependent; without a form the employer withholds without exemptions; low-income tax rate box
- Arkansas DFA — Withholding Tax Instructions for Employers (revised 4/27/26) — current withholding rate 3.7%; bonuses and commissions may be withheld at 3.7%; §125 cafeteria plan and 401(k) amounts are not wages subject to withholding
- Arkansas DFA — Withholding Tax Low Income Tax Tables (Effective 01/01/2026) — separate wage-bracket tables for employees who qualify for the low-income rates
- Arkansas House of Representatives — Tax Cuts Passed in Special Session (May 8, 2026) — HB 1001 (Act 1) and SB 1 (Act 2): individual top rate reduced to 3.7% beginning January 1, 2026
- Arkansas DFA — fiscal impact statement, SB 1 (2026 First Extraordinary Session) — 3.7% on net income of $26,400 and over, tax year 2026 and after
- Arkansas DFA — Income tax withholding tables adjusted due to most recent tax cut (July 15, 2024) — previous top rate cut from 4.4% to 3.9%
- Arkansas Department of Labor and Licensing — Minimum Wage and Overtime — $11.00 since January 1, 2021, for employers with 4 or more employees; tipped cash wage $2.63; overtime after 40 hours a week at time and a half
- U.S. Department of Labor — Minimum Wages for Tipped Employees — Arkansas: $11.00 combined rate, $8.37 tip credit, $2.63 cash wage
- Arkansas Department of Labor and Licensing — Wage Claims — claims of $2,000 or less, for workers earning $50,000 a year or less; filed online through the Citizen's Portal
- Ark. Code § 11-4-405 — Payment on discharge — all wages due by the next regular payday; double wages if not paid within 7 days of it
- Ark. Code § 11-4-401 — Time of payment — corporations pay wages no less often than semimonthly; monthly allowed for some exempt managers and executives
- Arkansas Division of Workforce Services — Employer UI Contributions — employers pay unemployment insurance tax on the first $7,000 per employee per year
Questions
What is the Arkansas income tax rate in 2026?
The withholding table uses 2%, 3%, 3.4% and 3.7%, after a first slice with no tax. The top rate fell from 3.9% to 3.7% this year.
How much is taken out of a $1,000 paycheck in Arkansas?
For a single filer paid every two weeks with nothing else on the W-4, a $1,000 paycheck has about $38.08 of federal income tax, $62.00 of Social Security and $14.50 of Medicare taken out, $18.62 of Arkansas income tax, leaving $866.80. Enter your own details in the calculator for your exact figure.
What is $20 an hour after taxes in Arkansas?
Working 40 hours a week and paid every two weeks, $20 an hour is $1,600.00 before tax and about $1,328.99 after tax per paycheck — $34,553.64 a year — for a single filer with a standard W-4.
How much is an Arkansas exemption worth?
Each exemption on your AR4EC takes $29 off your yearly Arkansas tax — about $1.12 per paycheck if you're paid every two weeks.
What if I never filled in an AR4EC?
Your employer withholds Arkansas tax with no exemptions, so more is held back.
When do I get my last paycheck in Arkansas?
If you're fired, your employer must pay all wages due by the next regular payday, or owe double wages if it is more than 7 days late after that. The final-pay law covers employees who are let go.