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Taxes
Arkansas Payroll Taxes 2026: Complete Overview for Employers
Arkansas graduated 2%–3.9% income tax, SUI on the first $7,000, and all employer tax obligations explained.
Practical guides on AR payroll taxes, employer registration, SUI, minimum wage, and labor laws — written for small business owners, not accountants.
Written by payroll professionals at Pacific Data Services — trusted since 1969.
Arkansas has progressive income tax rates from 2% to 3.9%, with recent reforms trending toward a lower flat rate over time.
At $7,000, Arkansas matches the federal FUTA wage base — one of the lowest SUI wage bases in the country.
Arkansas requires at least semi-monthly pay and gives discharged employees the right to demand final wages within 7 days.
Arkansas graduated 2%–3.9% income tax, SUI on the first $7,000, and all employer tax obligations explained.
Get your EIN, register with Arkansas, set up withholding, new hire reporting — the complete checklist.
New employer rate 3.1%, experienced range 0.30%–14.00%, wage base $7,000.
Arkansas minimum wage $11.00/hr. Arkansas’s minimum wage is $11.00/hr. Tipped employees may be paid $2.63/hr with a tip credit.
IRS classification rules, Arkansas-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for Arkansas small businesses.