Quick answer
A single freelancer in Arkansas with $75,000 of profit pays about $2,287 of Arkansas income tax in 2026 on top of about $15,495 of federal tax (self-employment tax of 15.3% on 92.35% of profit plus income tax), keeping about $57,218. At $50,000 the state bill is about $1,362; at $100,000, about $3,490.
Arkansas cut its top income tax rate to 3.7% in a May 2026 special session, retroactive to January 1, 2026. Two quirks matter for freelancers: Arkansas doesn’t let you deduct half of your self-employment tax, and its standard deduction is tiny. Here is what an Arkansas freelancer owes.
How Arkansas compares: in our 50-state take-home pay ranking, a single freelancer with $75,000 of profit keeps $57,218 in Arkansas after federal and state income tax, 23rd of 51 (state income tax: $2,287).
Set aside from every payment
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That is $0 of every $1,000 you receive
- Federal income tax share
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- Self-employment tax share
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- State tax share
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- Total to save this year
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Estimate for information only — not tax, legal or financial advice. Federal figures for tax year 2026; state and local taxes are not included unless you enter them. Check your situation with a CPA or enrolled agent.
What you pay on freelance profit
| Tax | Rate |
|---|---|
| Federal self-employment tax | 15.3% on 92.35% of profit (12.4% part capped at $184,500 for 2026) |
| Federal income tax | 10%–37% |
| Arkansas income tax | 0%–3.7% for 2026 (down from 3.9% in 2025) |
| City or county income tax | None |
The 2026 rate cut
Act 1 of the 2026 First Extraordinary Session (HB1001; its Senate twin, SB1, became Act 2) lowered the top individual rate from 3.9% to 3.7% for tax years beginning on or after January 1, 2026. If your net taxable income is $94,700 or less, the 2026 schedule is:
- 0% on the first $5,600
- 2% from $5,600 to $11,200
- 3% from $11,200 to $16,000
- 3.4% from $16,000 to $26,400
- 3.7% above $26,400
Above $94,700 of net taxable income, Arkansas uses separate tables that phase out the lower brackets.
No deduction for half of SE tax
Arkansas doesn’t start from your federal adjusted gross income. It builds its own, and its list of adjustments does not include the federal deduction for half of self-employment tax. It does allow others freelancers use, such as the self-employed health insurance deduction and contributions to SEP, SIMPLE and Keogh plans. The standard deduction is only $2,470 per taxpayer, and single filers get a $29 personal tax credit.
Estimated payments
File a declaration of estimated tax with Form AR1000ES if you expect your Arkansas tax, after withholding and credits, to be more than $1,000. Payments are due April 15, June 15 and September 15, 2026, and January 15, 2027. You can pay through ATAP, Arkansas’s online tax portal. Arkansas’s penalty rule is different from the IRS’s: you need to pay in at least 90% of the tax actually due by each quarterly date, or a 10% per year underestimate penalty applies.
Size the federal part with the quarterly estimated tax calculator and add a quarter of your expected Arkansas tax to each date.
If you have an LLC
Every Arkansas LLC pays a $150 annual franchise tax and files a report with the Secretary of State by May 1. Late filings owe penalty and interest. This applies even to a single-member LLC that pays no entity-level income tax, so build it into the cost of an LLC or an S corp election.
Sales tax
Arkansas’s state sales tax is 6.5%, plus local taxes. It covers goods and a defined list of services; check the Department of Finance and Administration’s list before assuming your work is exempt. If you sell taxable goods or services, register with the Department of Finance and Administration.
How much to set aside
Enter 3.7 in the state field of the tax set-aside calculator. Since Arkansas taxes the half of SE tax that other states let you deduct, and its standard deduction is small, 3.7% of profit is close to your real Arkansas cost on each extra dollar.
Frequently asked questions
What is Arkansas's income tax rate for 2026?
The top rate is 3.7% for 2026, down from 3.9% after a May 2026 special session, retroactive to January 1. If your net taxable income is $94,700 or less, rates run from 0% on the first $5,600 up to 3.7% above $26,400.
Can Arkansas freelancers deduct half of their self-employment tax?
No. Arkansas builds its own income figure and doesn't allow the deduction for half of self-employment tax. It does allow the self-employed health insurance deduction and SEP, SIMPLE and Keogh contributions. The standard deduction is only $2,470 per taxpayer.
When are Arkansas estimated tax payments due?
April 15, June 15 and September 15, 2026, and January 15, 2027. File Form AR1000ES if you expect your Arkansas tax after withholding and credits to exceed $1,000. Pay in at least 90% of the tax due by each date, or a 10% per year underestimate penalty applies.
How much does an Arkansas LLC cost each year?
$150. Every Arkansas LLC pays a $150 annual franchise tax and files a report with the Secretary of State by May 1, even a single-member LLC that pays no entity-level income tax. Late filings owe penalty and interest.