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Arkansas: minimum wage, income tax and cost of living

Arkansas in numbers: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for a budget.

Updated: October 11, 2026

What it costs to live and work in Arkansas: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.

ArkansasSource
Minimum wage$11.00 an hourUS Department of Labor, Wage and Hour Division: State Minimum Wage Laws
State income tax2 % to 3.7 %Arkansas Governor: Bills Signed: HB1001, SB1
State sales tax6.5 %Tax Foundation: State and Local Sales Tax Rates, Midyear 2026
Median gross rent$982 a month (2024)US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 (Median Gross Rent)

The minimum wage is $11.00 an hour for employers with four or more employees.

Arkansas cut its top rate from 3.9 % to 3.7 %, retroactive to January 1, 2026 (HB1001 and SB1, signed May 6, 2026).

The state rate is 6.5 %; local taxes add 2.98 % on average, for a combined 9.48 %.

What income does rent in Arkansas take?

A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $982 a month, that means a household income of about $39,300 a year before tax.

Work out your take-home pay

Good to know

  • Average combined sales tax (9.48 %) is among the highest in the country.

Sources

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