Authoritative Data and Expert Guidance
Data Source and Methodology
Authoritative data source: Arkansas Department of Finance and Administration (DFA), Individual Income Tax Brackets, 2024. Reference: “2024 Arkansas Individual Income Tax Tables.” Published 2024. Direct link: dfa.arkansas.gov/wp-content/uploads/2024_TaxBrackets.pdf.
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
Note: This tool focuses on Arkansas state income tax using the official progressive rate schedule for the selected year. It does not compute federal tax, FICA, local taxes, or specialized credits beyond the simple demonstration noted below.
The Formula Explained
Taxable income: $$ TI = \max\{0,\; I - D - A \} $$
where I = income, D = pre-tax deductions, A = Arkansas adjustments (can be negative).
Piecewise tax:
$$ T(TI) = \sum_{i=1}^{n} \big[\min(\max(0, TI - L_{i-1}), (U_i - L_{i-1}))\big] \cdot r_i $$
where
L_{i-1} and U_i are the lower/upper bounds of bracket i, and r_i is the rate for bracket i.Effective rate:
$$ \text{EffRate} = \begin{cases} \frac{T}{I} & I>0 \\ 0 & I=0 \end{cases} $$
Marginal rate (for TI within bracket k):
$$ \text{Marginal} = r_k $$
Glossary of Variables
- Income (I): Annual gross income before pre-tax deductions.
- Pre-tax deductions (D): Retirement (401k/403b/IRA), HSA, and other eligible pre-tax amounts.
- Arkansas adjustments (A): State-specific additions (positive) or subtractions (negative) to arrive at AR taxable income.
- Taxable income (TI): The portion of income that is subject to Arkansas state income tax.
- Total tax (T): Sum of the tax due across all brackets, net of applicable credits.
- Effective tax rate: T divided by Income.
- Marginal tax rate: The rate that applies to the last dollar of taxable income.
How It Works: A Step-by-Step Example
Inputs: Filing status = Single; Income I = $60,000; Pre-tax D = $6,000; AR adjustments A = $0.
- Compute taxable income: TI = 60,000 − 6,000 − 0 = $54,000.
- Apply 2024 AR brackets (illustrative schedule used by the tool):
- 0% on the first $5,099 → $0
- 2% on the next $5,200 ($10,299 − $5,099) → $104.00
- 3% on the next $4,300 ($14,599 − $10,299) → $129.00
- 3.4% on the next $9,700 ($24,299 − $14,599) → $329.80
- 4.4% on the remaining $29,701 ($54,000 − $24,299) → $1,306.84
These figures are for demonstration and align with the progressive structure published by the Arkansas DFA for 2024.
Frequently Asked Questions (FAQ)
Which incomes are covered by this calculator?
Wages, salaries, and other ordinary income subject to Arkansas state income tax. It does not compute special-case treatments (e.g., certain capital gains exclusions) or local taxes.
What if I already know my Arkansas taxable income?
Enter it as “Income” and set pre-tax deductions and Arkansas adjustments to zero. The calculator will treat the number as taxable income.
Does the tool include credits and exemptions?
The tool focuses on bracketed tax. A simple per-dependent demonstration credit is noted in the computation notes; verify all real credits with the DFA before filing.
Why do my results differ from my paycheck?
Withholding uses W-4/AR4EC elections and payroll cycles, not just final annual liability. This tool estimates annual state tax based on the bracket schedule.
Will you update for new Arkansas tax years?
Yes. We monitor the Arkansas DFA and update the schedule once official tables are published.
Is the calculator accessible?
Yes. It complies with WCAG 2.1 AA: semantic HTML, visible focus, keyboard operability, proper labels, descriptive errors, and sufficient color contrast.