Arkansas Taxes, Wages and Living Costs (2026)

Arkansas has a top income tax rate of 3.9%, the 4th highest combined sales tax (9.48%) and a $11.00 minimum wage as of 2026.

State income tax
3.9%
Top rate, graduated
Combined sales tax
9.48%
6.50% state + 2.98% avg. local
Minimum wage
$11.00
State rate, July 1, 2026
Property tax
0.56%
Effective rate on home value
Electricity
14.33¢/kWh
Residential average, July 2026

What It Adds Up To

$8,339 a year: that is roughly what a Arkansas homeowner earning $75,000 pays in state income tax ($2,741), sales tax on $25,000 of purchases ($2,370), property tax on a $300,000 house ($1,680) and electricity at 900 kWh a month ($1,548).

Arkansas Income Tax in 2026

Arkansas uses a graduated scale with 2 rates, topping out at 3.9%. Single filers' standard deduction: $2,470. On $50,000 of wages, a single filer's Arkansas tax works out to about $1,766 (3.5% of wages); on $100,000 it is about $3,716 (3.7%). Source: Tax Foundation, January 1, 2026.

RateSingle filersMarried filing jointly
2%over $0over $0
3.9%over $4,600over $4,600

Take-Home Pay in Arkansas

Estimated 2026 take-home pay for a single filer with no pre-tax deductions, using the federal brackets and $16,100 standard deduction, Social Security and Medicare, and Arkansas's brackets above. Open the paycheck calculator set to Arkansas to add a 401(k), change pay frequency or filing status.

SalaryFederal taxFICAState taxTake-home (year)Per biweekly check
$50,000$3,820$3,825$1,766$40,589$1,561
$75,000$7,670$5,738$2,741$58,851$2,264
$100,000$13,170$7,650$3,716$75,464$2,902

Sales Tax

The state rate is 6.50% and local governments add 2.98% on average, for a combined 9.48%, 4th highest of the 50 states and D.C. (median 7.00%). A $1,000 purchase carries about $95 in sales tax at the average combined rate. Source: Tax Foundation, July 1, 2026.

Minimum Wage

The Arkansas minimum wage is $11.00 an hour, 28th highest in the country, or $22,880 a year for full-time work, $7,800 more than the federal $7.25. Source: U.S. Department of Labor, July 1, 2026.

Property Tax

Homeowners in Arkansas paid property taxes equal to 0.56% of home value on average, the 14th lowest effective rate (median state 0.79%). On a $300,000 home that is about $1,680 a year, or $140 a month in escrow. Source: Tax Foundation (Census ACS data), 2024 data.

Electricity Prices

Residential electricity averaged 14.33¢ per kWh in July 2026, the 9th lowest of the 50 states and D.C. (median 16.09¢). A household using 900 kWh a month would pay about $129 before fixed charges. Source: U.S. EIA, July 2026 data.

Arkansas Compared with Its Neighbors

Arkansas sits in the middle of its 6 neighbors on taxes, wages and power prices.

StateTop income taxSales taxMin. wageProperty taxElectricity
Arkansas3.9%9.48%$11.000.56%14.33¢
Louisiana3%10.13%$7.250.55%12.72¢
Mississippi4%7.06%$7.250.58%14.54¢
Missouri4.7%8.44%$15.000.89%16.09¢
Oklahoma4.5%9.06%$7.250.79%14.35¢
TennesseeNone9.61%$7.250.52%13.71¢
TexasNone8.20%$7.251.40%15.88¢

Arkansas figures use statewide averages and skip credits, exemptions and local income taxes; check Arkansas revenue and labor department sites before filing or hiring.

💰 Finance & Tax Calculators
🏦
Arkansas Income Tax Calculator
Arkansas brackets, top rate 3.9%
AR rates
🏠
Mortgage Calculator
Payment plus Arkansas property tax at 0.56%
💵
Home Affordability
Budget with 0.56% property tax
💰
Salary Converter
Hourly to annual; Arkansas minimum $11.00
🧾
Federal Tax Estimator
Federal 2026 tax plus 3.9% top Arkansas rate
🏖
Retirement Calculator
Plan around Arkansas 3.9% top income tax
⚖ Legal Reference Calculators
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Small Claims Calculator
Arkansas limit: $5,000
AR limits
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Statute of Limitations
Filing deadlines for Arkansas legal claims
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Workers' Comp Estimator
Estimate Arkansas workers' compensation benefits
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Alimony Estimator
Spousal support estimates for Arkansas

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Planning a major financial decision in Arkansas? Our Home Buyer's Guide and Retirement Planning Guide walk you through every step with the right calculator at each stage.