The highest tax rate in Arkansas’s 2026 withholding methods was decreased May 29 by the state Department of Finance and Administration following the state’s most recent income tax cut.
The withholding formula is the same as that previously released for 2026 except that the highest tax rate decreased to 3.7%, from 3.9%, and the bottom two rows were removed such that the last row starts at $97,601 of annual income instead of $97,801.
The instructions indicate that the supplemental tax rate also decreased to 3.7%.
The tax cut bill (HB 1001) was signed by Gov. Sarah Huckabee Sanders ...
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