Arkansas’ 2025 withholding methods were updated by the state Department of Finance and Administration on Dec. 10.
The updated withholding formula takes effect Jan. 1. Tax rates continues to range from zero to 3.9%, unchanged from the last revision in 2024. The standard deduction amount increased to $2,410, up from $2,340. The taxable income brackets were also adjusted, but the value of a state allowance was unchanged at $29.
The updated withholding instructions retained the supplemental withholding rate of 3.9%, also effective Jan. 1.
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