Arkansas payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in Arkansas, each with its effective date and the agency page it comes from.
Unemployment insurance
Checked on October 5, 2026.
Income tax withholding
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Arkansas Department of Finance and Administration, Withholding Tax Branch (opens in a new tab) | Arkansas DFA, Withholding Tax (opens in a new tab) | |
| Withholding rates | 2% to 3.7% | Arkansas DFA, Withholding Tax Formula Method, effective 01/01/2026 (PDF) (opens in a new tab) | |
| Supplemental wages | 3.7% flat rate | Arkansas DFA, Withholding Tax Employer's Instructions, effective 01/01/2026, revised 4/27/26 (PDF) (opens in a new tab) | |
| Reciprocity | None | Arkansas DFA, Withholding Tax Employer's Instructions, effective 01/01/2026, revised 4/27/26 (PDF) (opens in a new tab) | |
| Employee's withholding form | Form AR4EC | Arkansas DFA, Form AR4EC Employee's Withholding Exemption Certificate (AR4EC2026.pdf, rev. 12/04/2025) (opens in a new tab) | |
| Local income taxes | No | Arkansas DFA, Taxes (opens in a new tab) |
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $11.00 | Arkansas Department of Labor and Licensing, Minimum Wage and Overtime (opens in a new tab) | |
| Tipped employees, cash wage | $2.63 | Arkansas Department of Labor and Licensing, Minimum Wage rules, 11 CAR 11-705 Tipped employees (PDF, printed 07/21/2026) (opens in a new tab) | |
| Rises with inflation | No | Arkansas Initiated Act (Issue No. 5, 2018), text posted by the Department of Labor and Licensing (PDF) (opens in a new tab) | |
| Local rates | No city or county minimum wages listed; the Department of Labor and Licensing gives one statewide rate, $11.00. | Arkansas Department of Labor and Licensing, Minimum Wage and Overtime (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
| Item | Value | Effective | Source |
|---|---|---|---|
| State program | None | Arkansas DFA, Taxes (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From 3 employeesConstruction: from 2 employees, In building or building repair work; one or more employees for a contractor who subcontracts any part of a contract, and for any subcontractor | Ark. Code Ann. §11-9-102(11), definition of employment, and §11-9-401 (Arkansas Code Annotated, Code of Arkansas Public Access) (opens in a new tab) | |
| State fund | None; private insurers | Ark. Code Ann. §11-9-102(11), definition of employment, and §11-9-401 (Arkansas Code Annotated, Code of Arkansas Public Access) (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in Arkansas
Employer taxes and contributions on one employee's pay in Arkansas, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
- Employer taxes and contributions per check
- $236.54
- First check of the year
- Cost per check
- $2,544.23
- Pay included, first check
- Cost per year
- $64,772.00
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,484.23, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Arkansas unemployment | 2% on the first $7,0002.0% in 2026 (base rate plus the 0.2% stabilization rate), kept until the employer has three years of benefit experience | $46.15None after check 4 | $140.00 | Arkansas Division of Workforce Services, UI Employer Services (Tax Rates 2026) (opens in a new tab) |
| Employer taxes and contributions | $236.54 | $4,772.00 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,544.23 | $64,772.00 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
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Rates in other states
- Alabama
- Alaska
- Arizona
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- Arkansas Division of Workforce Services, UI Employer Services (Tax Rates 2026) (opens in a new tab)
- Ark. Code Ann. 11-10-215(a)(2)(A)(i)(d) and (f) (LexisNexis, Arkansas Code free public access) (opens in a new tab)
- Arkansas Division of Workforce Services, Employer Handbook (PDF) (opens in a new tab)
- Arkansas Division of Workforce Services, Employer UI Contributions (opens in a new tab)
- US DOL OUI, FUTA Credit Reductions (opens in a new tab)
- Arkansas DFA, Withholding Tax (opens in a new tab)
- Arkansas DFA, Withholding Tax Employer's Instructions, effective 01/01/2026, revised 4/27/26 (PDF) (opens in a new tab)
- Arkansas DFA, Withholding Tax Formula Method, effective 01/01/2026 (PDF) (opens in a new tab)
- Arkansas DFA, Form AR4EC Employee's Withholding Exemption Certificate (AR4EC2026.pdf, rev. 12/04/2025) (opens in a new tab)
- Arkansas DFA, Taxes (opens in a new tab)
- Arkansas Department of Labor and Licensing, Minimum Wage and Overtime (opens in a new tab)
- Arkansas Department of Labor and Licensing, Minimum Wage rules, 11 CAR 11-705 Tipped employees (PDF, printed 07/21/2026) (opens in a new tab)
- Arkansas Initiated Act (Issue No. 5, 2018), text posted by the Department of Labor and Licensing (PDF) (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.