Arkansas payroll taxes
Every tax withheld from a Arkansas paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: assets.equifax.com, help.nfc.usda.gov, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Arkansas SUTA | — | 2% (new) | $7,000 |
| Arkansas income tax | 0%–3.7% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
Arkansas charges new employers 2% on the first $7,000 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0.2% to 10.1%. The DOL table lists a 1.8% new employer rate; Eddy, Teamed and Patriot imply 2.0% for 2026. Standard experienced band is 0.2%-5.1%, and deficit employers pay 6.1%, 8.1% or 10.1%.
Stabilization tax is included in the assigned rate (not itemized in sources)
Register and file with the Arkansas unemployment tax agency.
Income tax withholding
Arkansas has a graduated income tax with 5 brackets, from 0% up to 3.7% on taxable income over $26,400 for single filers.
Frequently asked questions
- What payroll taxes do employers pay in Arkansas?
- Social Security, Medicare, federal unemployment (FUTA) and Arkansas unemployment insurance (SUTA).
- What is the Arkansas SUTA wage base for 2026?
- $7,000 per employee.
- Does Arkansas require state income tax withholding?
- Yes. Employers withhold Arkansas income tax based on the employee's state withholding certificate or federal W-4.