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.
| Arkansas | Source | |
|---|---|---|
| Minimum wage | $11.00 an hour | US Department of Labor, Wage and Hour Division: State Minimum Wage Laws |
| State income tax | 2 % to 3.7 % | Arkansas Governor: Bills Signed: HB1001, SB1 |
| State sales tax | 6.5 % | 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.
Good to know
- Average combined sales tax (9.48 %) is among the highest in the country.
Sources
- US Department of Labor, Wage and Hour Division: State Minimum Wage Laws (2026-07-01)
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 (rates as of January 1, 2026) (2026-02-19)
- Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (2026-07-06)
- US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 (Median Gross Rent) (2025-09)
- Arkansas Governor: Bills Signed: HB1001, SB1 (2026-05-06)