Arkansas’s highest income tax rate remains 3.9% in 2026, while other parameters of the state Department of Finance and Administration’s 2026 withholding formula were adjusted.
The standard deduction used in the withholding formula increased to $2,470, from $2,410, and the formula’s tax brackets were adjusted while the value of a state allowance remained unchanged at $29.
The threshold for filing Forms W-2 electronically decreased to 75 employees from 125, according to the state’s withholding instructions effective Jan. 1.
The state also released 2026 versions of its withholding certificates, Form AR4EC, Employee’s Withholding Exemption Certificate, and Form AR4ECSP, Employee’s ...
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