Arkansas taxes and cost of living (2026)
Arkansas has a graduated income tax from 0.00% to 3.70%. A $100,000 salary is worth about $78,836 a year in national buying power after every tax and Arkansas's prices, #3 of 51 (the state average is $70,397). Retiring on $50,000 a year takes about $1.13M, #2 lowest.
- State income tax
- 0.0%–3.70%
- Sales tax (avg. combined)
- 9.48%
- Property tax (effective)
- 0.52%
- Cost of living
- 86.9
- US = 100
- Social Security taxed?
- No
- Median home
- $216K
Take-home pay in Arkansas
Single filer, 10% of salary to a pre-tax 401(k), standard deduction, renting. All taxes include estimated sales tax.
| Salary | Federal | FICA | State + local | All-in tax rate | Take-home | In US dollars |
|---|---|---|---|---|---|---|
| $50,000 | $3,220 | $3,825 | $1,177 | 17.8% | $36,778 | $42,304 |
| $75,000 | $6,020 | $5,738 | $2,010 | 19.7% | $53,733 | $61,806 |
| $100,000 | $10,970 | $7,650 | $2,842 | 22.8% | $68,538 | $78,836 |
| $150,000 | $21,134 | $11,475 | $4,795 | 26.3% | $97,596 | $112,261 |
| $250,000 | $43,304 | $15,514 | $8,125 | 28.1% | $158,057 | $181,807 |
What it takes to retire in Arkansas
Married couple, age 60, withdrawals 60% from 401(k)/IRA, 20% Roth, 20% brokerage, no Social Security yet, renting. Spending at US-average prices.
| Spending | At AR prices | Income taxes | All taxes | FI number |
|---|---|---|---|---|
| $40,000 | $34,775 | $0 | $1,055 | $869.4K |
| $60,000 | $52,162 | $236 | $1,818 | $1.31M |
| $80,000 | $69,550 | $1,718 | $3,828 | $1.78M |
| $120,000 | $104,324 | $5,098 | $8,263 | $2.74M |
Arkansas tax rules at a glance
- Income tax: Arkansas has a graduated income tax from 0.00% to 3.70%. 2026 RATE CUT: Act 1 of the 2026 First Extraordinary Session (HB1001) cut the top rate from 3.9% to 3.7% retroactive to Jan 1, 2026. Brackets apply to net taxable income and are the same for joint filers (not doubled). The table shown applies to net income <= $94,700. Above $94,700 a different table applies to ALL income: 2% on the first $4,700, 3.7% above that, with a bracket-adjustment credit ($290 down to $10) for net income $94,701-$97,600. Personal credit is $29 per taxpayer/dependent.
- Local income tax: No local income taxes.
- Social Security: Not taxed. Social Security fully exempt.
- Retirement income: Up to $6,000 per person of employer pension and IRA/401k distributions excluded (IRA distributions must be after age 59.5). Military retirement fully exempt.
- Capital gains: 50% of net long-term capital gains excluded; net capital gains over $10 million in a year fully exempt.
- Sales tax: 6.50% state rate, 9.48% average with local taxes; groceries exempt.
Compare Arkansas with
Frequently asked questions
Does Arkansas have a state income tax?
Arkansas has a graduated income tax from 0.00% to 3.70%. 2026 RATE CUT: Act 1 of the 2026 First Extraordinary Session (HB1001) cut the top rate from 3.9% to 3.7% retroactive to Jan 1, 2026. Brackets apply to net taxable income and are the same for joint filers (not doubled). The table shown applies to net income <= $94,700. Above $94,700 a different table applies to ALL income: 2% on the first $4,700, 3.7% above that, with a bracket-adjustment credit ($290 down to $10) for net income $94,701-$97,600. Personal credit is $29 per taxpayer/dependent.
How much is $100,000 after taxes in Arkansas?
A single filer earning $100,000 who puts $10,000 in a 401(k) takes home about $68,538 after federal, state and local income taxes and payroll taxes, an all-in effective rate of 22.8% including estimated sales tax.
Does Arkansas tax Social Security?
No. Arkansas does not tax Social Security benefits. Social Security fully exempt.
How much do you need to retire in Arkansas?
To spend $50,000 a year (at US-average prices) with withdrawals mostly from a 401(k)/IRA, you'd need about $1.13M in Arkansas using the 4% rule, after its cost of living and taxes.
Is Arkansas expensive to live in?
Arkansas's cost of living index is 86.9, where the US average is 100 (BEA Regional Price Parities, 2024). The median home is worth about $215,600 and median rent is $982 a month.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).