(ARKANSAS) For many immigrants and cross‑border workers, your first real tie to Arkansas is not a driver’s license or a lease—it’s a paycheck and the state tax taken out of it. For tax year 2026, Arkansas keeps the same graduated individual income tax brackets used since the 2024/2025 rate cuts, with a top marginal rate of 3.9%. That 3.9% rate was set by legislation signed by Governor Sarah Huckabee Sanders for tax years beginning on or after January 1, 2024, and it remains in place for 2026, according to summaries from the Arkansas Economic Development Commission and Withum.
A practical road map from first day in the state to filing season
If you arrive in Arkansas mid‑year, you don’t wait until April to think about state taxes. The process starts the week you begin work, because withholding is your prepayment of what you’ll owe when you file.
Arkansas’s Department of Finance & Administration (DFA) publishes withholding tables that employers and payroll software use for each payroll period. Ask your HR team which DFA table applies to you, and keep your pay stubs; those stubs are often the only easy record of what Arkansas tax was withheld.
Step 1: Confirm how Arkansas will treat you for tax year 2026
Arkansas uses the same graduated rates for residents, non‑residents, and also for estates and trusts that have income from within the state, according to AEDC guidance. Your immigration status doesn’t decide this part; your facts do—where you live, where you work, and where the income is earned.
Newcomers often get tripped up when they:
- move during the year,
- work remotely for an out‑of‑state employer, or
- earn Arkansas income while living across the border.
In those cases, you may still see Arkansas withholding on wages and may need to file to settle up. Give yourself time to collect documents that show dates and places: a lease, utility bills, and work agreements.
The 3.9% is the top marginal rate, not a flat tax. If income crosses the >$92,300 line, rely on the official worksheet format and keep backup copies to avoid miscalculation.
If you’re in the middle of a green card or work visa process and you’re changing addresses, keep copies of any address updates you file with immigration as well so your tax records match your immigration records.
Step 2: Know the brackets and what “marginal” really means
For tax year 2026, Arkansas’s individual income tax is graduated, which means you pay different rates on different slices of taxable (net) income.
The state’s table lists these bracket ranges and rates:
- $0 – $5,499: 0.0%
- $5,500 – $10,899: 2.0%
- $10,900 – $15,599: 3.0%
- $15,600 – $25,699: 3.4%
- $25,700 and above up to the top‑tier threshold listed by the state: 3.9%
Important: Arkansas also references a separate special schedule for incomes “greater than $92,300.” The AEDC and DFA-style guidance sometimes breaks income into alternate sub‑brackets in that format. Don’t panic if the worksheet you see looks different from the simple list above.
A 3.9% top marginal rate does not mean you pay 3.9% on every dollar you earn. It means the last dollars in the top band are taxed at 3.9%, after lower slices were taxed at 0.0%, 2.0%, 3.0%, and 3.4%.
Step 3: Set up withholding that matches your real life
Most people experience Arkansas tax as withholding. When you start a job, you’ll complete federal hiring paperwork and the employer will withhold state tax using DFA tables for the pay period.
For immigrants, this stage can feel tied to your status because employers must also verify work authorization on Form I-9. If your name, document numbers, or work eligibility dates change later, talk to HR early so payroll and employment records stay consistent.
Each payday, watch these three items:
- Gross wages
- Arkansas withholding
- Any move to or from Arkansas that might change whether the state should be withholding at all
If withholding seems off, fix it during the year rather than hoping to sort it out at filing time.
Ask your HR team which DFA withholding table applies to you, keep every pay stub, and review withholding each payday to ensure it matches real earnigs and life changes.
Step 4: Build your file from January through March 2027
Even though this is tax year 2026, your paperwork shows up after the year ends. Plan for a document season in early 2027.
Set up a folder—paper or digital—and save the following:
- Pay stubs
- Year‑end wage statements (W‑2s)
- Forms for interest or contract income (1099s)
- Proof of any Arkansas‑source income
- Proof of time spent living in Arkansas (leases, utility bills)
- Travel records and housing records if you were a student or new arrival
This file also helps if you later apply for an immigration benefit that asks for tax history, since you can show you reported income and matched addresses across systems.
Step 5: Filing and payment—what to expect when you submit
When you file your Arkansas individual return for tax year 2026, you’re reconciling:
- the tax you owe under the graduated rates versus
- what was already withheld.
If withholding covered more than your final tax, you’ll claim a refund. If it didn’t, you’ll pay the balance.
Because Arkansas applies the same graduated structure to non‑residents with Arkansas income, some cross‑border workers file mainly to confirm the right share of income is taxed in Arkansas, not elsewhere.
For the state’s official tables, worksheets, and employer withholding references, start with the Arkansas Department of Finance & Administration’s tax pages at Arkansas DFA. That site is also where updated withholding tables and formula methods are posted for the correct payroll period.
Where immigrants often need extra care with Arkansas taxes
According to analysis by VisaVerge.com, tax compliance is one of the quiet documents that can matter later—especially when families apply for loans, renew housing, or compile records for immigration lawyers.
Key reminders:
Create a 2027 tax folder now: collect W-2s, 1099s, proof of Arkansas income, and residency documents to reconcile later and support immigration filings.
- The 3.9% rate you hear is only the top slice, not the whole bill.
- If you’re unsure about the “greater than $92,300” schedule, use the state’s worksheet format and keep backup papers.
- Start early, ask payroll questions in writing, and never ignore letters from the DFA—they can have important deadlines and instructions.
Final takeaway: Keep good records, confirm withholding early, and reconcile at filing time so your Arkansas tax history is accurate and defensible for future financial and immigration needs.
Arkansas has set its top marginal income tax rate at 3.9% for the 2026 tax year. This rate applies to both residents and non-residents earning income within the state. Taxpayers are encouraged to track their withholding closely, maintain accurate residency records, and align their tax documentation with their immigration filings. Understanding the graduated bracket system is key to accurate financial planning and long-term compliance.
