Tax rate used in calculating Arkansas state tax for year 2023

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Withholding Formula (Effective 2023)

1. Subtract the biweekly Thrift Savings Plan contribution from the gross biweekly wages.
   
   
2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
   
   
3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
   
   
4. Multiply the gross biweekly wages by 26 to obtain the annual wages.
   
   
5. Subtract the standard deduction of $2,270 from the result of step 4 to compute the taxable income. If Net taxable income below $91,801, look up the income at the $50 range (midrange of $100). Over 91,801 use the exact dollar figure.
   
   
6. Apply the taxable income computed in step 5 to the following table to determine the annual Arkansas tax withholding.
   
   

Tax Withholding Table
If the Amount of Taxable Income Is:		The Amount of Arkansas Tax Withholding Should Be:
Over:	But Not Over:	Rate	Minus Adjustment
$0.0000	$5100	0%	$0.0000
$5100	$10300	2%	$101.98
$10300	$14700	3%	$204.97
$14700	$24300	3.4%	$263.77
$24300	$87000	4.9%	$628.25
$87000	$87100	4.9%	$627.2
$87100	$87200	4.9%	$617.2
$87200	$87300	4.9%	$607.2
$87300	$87400	4.9%	$597.2
$87400	$87600	4.9%	$587.2
$87600	$87700	4.9%	$577.2
$87700	$87800	4.9%	$567.2
$87800	$87900	4.9%	$557.2
$87900	$88000	4.9%	$547.2
$88000	$88100	4.9%	$537.2
$88100	$88200	4.9%	$527.2
$88200	$88300	4.9%	$517.2
$88300	$88400	4.9%	$507.2
$88400	$88500	4.9%	$497.2
$88500	$88600	4.9%	$487.2
$88600	$88700	4.9%	$477.2
$88700	$88800	4.9%	$467.2
$88800	$88900	4.9%	$457.2
$88900	$89000	4.9%	$447.2
$89000	$89100	4.9%	$437.2
$89100	$89200	4.9%	$427.2
$89200	$89300	4.9%	$417.2
$89300	$89400	4.9%	$407.2
$89400	$89500	4.9%	$397.2
$89500	$89600	4.9%	$387.2
$89600	$89700	4.9%	$377.2
$89700	$89800	4.9%	$367.2
$89800	$89900	4.9%	$357.2
$89900	$90000	4.9%	$347.2
$90000	$90100	4.9%	$337.2
$90100	$90200	4.9%	$327.2
$90200	$90300	4.9%	$317.2
$90300	$90400	4.9%	$307.2
$90400	$90500	4.9%	$297.2
$90500	$90600	4.9%	$287.2
$90600	$90700	4.9%	$277.2
$90700	$90800	4.9%	$267.2
$90800	$90900	4.9%	$257.2
$90900	$91100	4.9%	$247.2
$91100	$91200	4.9%	$237.2
$91200	$91300	4.9%	$227.2
$91300	$91400	4.9%	$217.2
$91400	$91500	4.9%	$207.2
$91500	$91600	4.9%	$197.2
$91600	$91700	4.9%	$187.2
$91700	$91800	4.9%	$177.2
$91800	and over	4.9%	$167.2



7. 7. Multiply the total number of Withholding Exemptions claims on Form AR4EC by $29.00 to arrive at the total amount of Annual Personal Tax Credits Allowed
   
   

Substract the Annual Personal Credits from the Annual Gross Tax computed to arrive at the At the Annual Net Tax that will be owed.

8. Divide the annual Arkansas tax withholding by 26 to obtain the biweekly Arkansas tax withholding.