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Arkansas Income Tax Withholding and Payroll Information

Compliance with state taxes are required for every employer. Learn about relevant rates and automation below.

A team using ez1095 software for small businesses

Every state in the country has a unique paradigm for income tax and state unemployment insurance rates. Located below are relevant rates and complance information by state.

Employers must also adhere to federal income tax withholding rules as well. More information can be found here about federal rates .

Alternatively, employers can automatically calculate payroll witholding information by using ezPaycheck.

Arkansas Tax Information

General Information
State Abbreviation AR
State Tax Withholding State Code 05
Acceptable Exemption Form AR4EC or W-4
Acceptable Exemption Data S, N, M, H, 0 / Number of Exemptions
TSP Deferred Yes
Special Coding

Determine the Total Number Of Allowances field as follows:

First Position - S = Single; M = Married, Claiming Both Husband and Wife; N = Married, Claiming Self Only; H = Head of Household; 0 (zero), No Personal Exemption or Dependents Claimed.

Second Position - Enter the number of exemptions claimed for dependents. If less than 10, precede with a zero. If no dependents are claimed, enter 00 in the second and third positions.

Additional Information None

How to Calculate Arkansas Taxes

  1. Subtract the biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the gross biweekly wages by 26 to obtain the annual wages.
  5. Subtract the standard deduction of $2,410 from the result of step 4 to compute the taxable income. If Net taxable income below $100,001, look up the income at the $50 range (midrange of $100). Over 100,001 use the exact dollar figure.
  6. Apply the taxable income computed in step 5 to the following table to determine the annual Arkansas tax withholding.
  7. Substract the Annual Personal Credits from the Annual Gross Tax computed to arrive at the At the Annual Net Tax that will be owed.
  8. Multiply the total number of Withholding Exemptions claims on Form AR4EC by $29.00 to arrive at the total amount of Annual Personal Tax Credits Allowed
  9. Divide the annual Arkansas tax withholding by 26 to obtain the biweekly Arkansas tax withholding.

Want to calculate in a easier way? Learn how to calculate Arkansas taxes via ezPaycheck below.

Learn More

Deductions, Allowances, and Exemptions

Arkansas offers $29 per Annual Personal Credits based on the number of excemptions claimed.

Tax Witholding Tables

Tax Withholding Table for Arkansas
If Taxable Income Is Tax Withholding
Over But Not Over Rate Minus Adjustment
$0.0000 $5500 0% $0.0000
$5500 $10900 2% $109.98
$10900 $15100 3% $218.97
$15600 $25000 3.4% $281.37
$25700 $92300 3.9% $409.86
$92300 $92400 3.9% $397.4
$92400 $92500 3.9% $387.4
$92500 $92600 3.9% $377.4
$92600 $92700 3.9% $367.4
$92700 $92800 3.9% $357.4
$92800 $92900 3.9% $347.4
$92900 $93000 3.9% $337.4
$93000 $93100 3.9% $327.4
$93100 $93200 3.9% $317.4
$93200 $93300 3.9% $307.4
$93300 $93400 3.9% $297.4
$93400 $93500 3.9% $287.4
$93500 $93600 3.9% $277.4
$93600 $93700 3.9% $267.4
$93700 $93800 3.9% $257.4
$93800 $93900 3.9% $247.4
$93900 $94000 3.9% $237.4
$94000 $94100 3.9% $227.4
$94100 $94200 3.9% $217.4
$94200 $94300 3.9% $207.4
$94300 $94500 3.9% $197.4
$94500 $94600 3.9% $187.4
$94600 $94700 3.9% $177.4
$94700 $94800 3.9% $167.4
$94800 $94900 3.9% $157.4
$94900 $95000 3.9% $147.4
$95000 $95100 3.9% $137.4
$95100 $95200 3.9% $127.4
$95200 $95300 3.9% $117.4
$95300 $95400 3.9% $107.4
$95400 $95500 3.9% $97.4
$95500 and over 3.9% $87.4

More Payroll Information for Arkansas Small Business

  • What is the cost of using ezPaycheck payroll software

  • Quick Start Guide for New Payroll Software Customers

  • How to start payroll in mid-year

  • How to handle tips in restaurants

  • How to handle the local taxes

  • How to print paycheck on blank stock

  • How to add a customized deduction and withhold it automatically

  • How to set up payroll tax options for church and non-profits

  • How to handle paychecks for both employees and contractors

  • How to file tax forms

  • How to enter the paychecks for after the fact payroll




    More Payroll Information for Arkansas Small Business

  • What is the cost of using ezPaycheck payroll software

  • Quick Start Guide for New Payroll Software Customers

  • How to start payroll in mid-year

  • How to handle tips in restaurants

  • How to handle the local taxes

  • How to print paycheck on blank stock

  • How to add a customized deduction and withhold it automatically

  • How to set up payroll tax options for church and non-profits

  • How to handle paychecks for both employees and contractors

  • How to file tax forms

  • How to enter the paychecks for after the fact payroll



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