Arkansas pay stubs: state income tax and withholding basics

State income tax

Arkansas taxes wages under a graduated system, where higher slices of income are taxed at higher rates. The legislature has cut these rates several times in recent years, most recently in 2026, so the withholding formula has changed more often than in most states. If you run payroll yourself, use the current-year formula from the Department of Finance and Administration rather than an old table.

Employees report their filing status and exemptions on Form AR4EC, the Arkansas Employee's Withholding Exemption Certificate. The state formula annualizes each paycheck, subtracts a standard deduction, applies the rate brackets, and then reduces the result by a credit for each exemption claimed.

Other state payroll deductions

Arkansas does not have a state disability insurance program or a payroll-funded paid family leave program. State unemployment insurance is paid by the employer, not withheld from the employee. For most people, the Arkansas section of a pay stub has a single line for state income tax.

Local taxes

Arkansas cities and counties do not levy income taxes on wages. Local sales taxes are common, but they never show up on a pay stub.

Federal withholding still applies

State rules sit on top of the federal ones, not in place of them. Every Arkansas paycheck also shows:

• Federal income tax, based on the employee's Form W-4.
• Social Security at 6.2% of wages, up to the annual Social Security wage base.
• Medicare at 1.45% of all wages, plus an additional 0.9% on wages above $200,000 in a calendar year.

Creating an Arkansas pay stub with PayStubNest

Start a new pay stub, pick Arkansas, and enter either hours and a rate or a salary. The exact amounts on the stub depend on pay, pay frequency, W-4 choices, deductions and year-to-date totals. PayStubNest calculates all of it automatically: it works out the federal and state withholding, then keeps the year-to-date columns running across pay periods so each stub picks up where the last one left off. Previewing is free; you pay only for downloads.

Record-keeping tip

Because Arkansas rates have changed often, note which year's withholding formula you used when you store each pay record. If a rate change is applied retroactively, the notes make any year-end adjustment easier to follow. Current forms and formulas are at the Arkansas Department of Finance and Administration. See also our FAQ.