Arkansas Tax Brackets: Tables, Deductions, and Filing Status

Arkansas income tax brackets for 2026 run from 0% to 3.9%, with the top rate kicking in on net income above $26,400 for most filers.¹ The wrinkle that catches people out: Arkansas uses two separate bracket tables, and which one applies to you depends on your total net income. If you earn roughly $94,700 or less, you get a wider set of graduated brackets. Above that threshold, a compressed two-bracket table pushes almost all of your income into the top rate.²

The Lower-Income Table

If your net income for 2026 is at or below approximately $94,700, these are your brackets:

$0 to $5,599: 0%
$5,600 to $11,199: 2%
$11,200 to $15,999: 3%
$16,000 to $26,399: 3.4%
$26,400 to $94,700: 3.9%

These brackets are progressive. Each rate applies only to the income that falls within its range. A filer earning $50,000 pays nothing on the first $5,599, 2% on the next slice, 3% on the slice after that, and so on, with only the portion above $26,400 hitting the top 3.9% rate.¹ The bracket boundaries are set by statute and adjust annually for inflation.

The Higher-Income Table

Once your net income clears roughly $94,700, you leave the graduated schedule behind. The higher-income table has just two brackets:

$0 to approximately $4,700: 2%
Above approximately $4,700: 3.9%

Under this schedule, almost everything you earn is taxed at 3.9%. To avoid a cliff where crossing the threshold by a dollar would sharply raise your tax, the statute includes a bracket adjustment for filers with net income between about $94,701 and $97,800. The adjustment phases out in $100 income increments, and once your net income clears $97,800, no smoothing remains.²

How the Two Tables Work Together

Most states apply the same brackets to everyone and simply stop bumping you into higher rates once your income runs out. Arkansas doesn’t. Your total net income first determines which table you sit in, and then the rates in that table apply from your first dollar.

Take a filer with $90,000 of net income. They are above the lower-income table threshold, so the higher-income table controls: about $4,700 taxed at 2%, and everything above that at 3.9%. That produces a noticeably bigger tax bill than if the same $90,000 ran through the lower-income table with its 0% floor and step-ups at 2%, 3%, and 3.4% before reaching 3.9%. The transitional bracket adjustment softens the jump for filers just over the line but doesn’t erase it.

If your income sits near the threshold, planning pays. A retirement contribution or a well-timed deduction that keeps you under $94,700 can save more than the dollar-for-dollar income change would suggest.

Standard Deduction and Personal Credits

The bracket tables apply to your net income, which is what’s left after deductions. For 2026, the Arkansas standard deduction is $2,470 per taxpayer.¹ A married couple where both spouses have income can each claim it, for a combined $4,940. The statutory base is $2,200, adjusted annually for inflation.³ That amount is far below the federal standard deduction, so filers who take the standard deduction on their federal return often itemize on their Arkansas return.

After the bracket rates apply, credits come off the tax itself, dollar for dollar. Every Arkansas filer gets a personal tax credit. The statutory base is $20 for an individual and $40 for a joint return, adjusted for inflation.⁴ The inflation-adjusted individual credit for 2026 is $29.¹

Filers with net income up to $24,700 also qualify for a separate low-income tax credit. It maxes out at $60 for net income of $23,600 or less and phases down in $5 steps until it reaches zero at $24,701. The income thresholds in this table adjust annually for inflation.⁵

Social Security and Retirement Income

Social Security benefits are fully exempt from Arkansas income tax. The exemption covers both retirement and disability benefits under the Social Security Act and the Railroad Retirement Act.⁶

For other retirement income, Arkansas provides a $6,000 annual exemption. Military retirees can apply the full $6,000 against their military retirement pay. If a military pension is less than $6,000, the remainder can be applied to employer-sponsored retirement income. Filers whose military pension equals or exceeds $6,000 cannot claim an additional exemption on top of that.⁷ For non-military retirees, the same $6,000 exemption applies to qualifying employer-sponsored retirement benefits.

Filing Status and the Arkansas-Only Option

Arkansas recognizes six filing statuses. Five mirror federal categories: single, married filing jointly, head of household, married filing separate returns, and qualifying surviving spouse.⁸ The sixth is unique to Arkansas and worth understanding if you’re married: Married Filing Separately on the Same Return.

Under this option, each spouse’s income goes on the same form in separate columns, and each spouse’s tax is calculated independently on their own income. When both spouses earn similar amounts, filing jointly can push the combined total into higher brackets or over the two-table threshold. Splitting the income on the same return often produces a lower combined bill. Both spouses remain jointly liable for any balance due.⁹

Your filing status reflects your marital status on December 31 of the tax year. Marry on New Year’s Eve and you’re treated as married for the whole year; divorce on December 30 and you file as single or head of household.

How the Rates Got Here

Arkansas has cut its top individual rate steadily over the past few years. Through 2022, the top rate was 4.9%. A 2023 change dropped it to 4.7% and pushed the 0% bracket out to cover the first $5,099 of net income.² A 2024 special session cut the top rate again to 3.9%, effective January 1, 2024, and widened the brackets further.¹⁰ The 3.9% top rate carries into 2026, with bracket boundaries adjusted upward for inflation.¹

Each round has also raised the income line that separates the two tables, moving from $84,500 to $87,000 to $89,600 and now to roughly $94,700 for 2026. The 0% bracket floor has climbed alongside it. More cuts are possible in future sessions, so it’s worth checking the Department of Finance and Administration’s published tables each January before you file.

1
National Finance Center. Arkansas State Income Tax Withholding
2
Justia. Arkansas Code 26-51-201 – Individuals, Trusts, and Estates
3
Justia. Arkansas Code 26-51-430 – Deductions – Standard Deduction – Definition
4
FindLaw. Arkansas Code Title 26 Taxation 26-51-501 – Personal Tax Credits – Definitions
5
Justia. Arkansas Code 26-51-501 – Personal Tax Credits – Definitions
6
Arkansas Department of Finance and Administration. Individual Income Tax Regulations
7
Arkansas Department of Finance and Administration. What’s New
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Arkansas Department of Finance and Administration. Which Filing Status
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Cornell Law Institute. Arkansas Code of Regulations 2.26 Ark. Code R. 51-801(a) – Filing Status 4 – Married Filing Separately on the Same Return
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Office of the Governor of Arkansas. Governor Sanders Calls a Special Session of the General Assembly