Arkansas Nanny Tax Calculator
Estimate your total employer costs for hiring a nanny in Arkansas. Enter your nanny's pay below for a personalized tax breakdown.
Arkansas employer tax rates at a glance
Social Security
6.2%
employer share
Medicare
1.45%
employer share
FUTA
0.6%
on first $7,000
AR SUTA
0.1% - 14%
new employer rate range
Key facts for Arkansas household employers
- Minimum wage: $11.00/hour (compare nationwide)
- No state income tax withheld from your nanny's pay (they file it themselves)
- No state income tax withholding for domestic workers
- State minimum wage is $11.00/hour
Arkansas nanny tax FAQ
How does the calculator estimate Arkansas nanny taxes?
The calculator estimates the full employer cost for a household employee in Arkansas: federal FICA (15.3% combined, split between you and your employee), federal FUTA (0.6% effective on the first $7,000), and Arkansas SUTA (0.1% - 14%). Arkansas doesn't allow state income tax to be withheld from a household employee's pay, and has no disability or PFL programs affecting household payroll, so none of those add to your employer cost. Your employee still reports the wages on their own Arkansas return. Numbers update for tax year 2026 and reflect the 2026 FICA threshold of $3,000.
Does Arkansas require state income tax withholding from a nanny's paycheck?
Arkansas has a state income tax but specifically exempts wages for domestic service in a private home from withholding (Ark. Code Ann. § 26-51-902(12)(A)). You do not withhold Arkansas state income tax from your nanny's paycheck. Your nanny remains responsible for reporting those wages and paying any income tax they owe on their own Arkansas return.
What's the minimum hourly rate I can pay a nanny in Arkansas?
Arkansas's minimum wage is $11.00/hour, above the federal $7.25 floor. Household employees must be paid at least this rate. FLSA overtime (1.5x for hours over 40 in a week) applies to most household employees. Live-in nannies are FLSA-exempt from overtime but not from minimum wage.
Does Arkansas add disability or paid family leave premiums?
No. Arkansas does not require state disability insurance or paid family leave for household employees. Your obligations are the federal baseline (FICA, FUTA, Schedule H) plus Arkansas state unemployment insurance.
Why does my Arkansas nanny's net pay differ from the calculator total?
In Arkansas, the gross-to-net difference comes from federal FICA (6.2% Social Security + 1.45% Medicare = 7.65% withheld from the employee), any federal income tax your nanny chose to have withheld. Your share — the employer FICA match and FUTA + SUTA — sits on top of the gross, not subtracted from it. The calculator separates "employer cost" (your total outlay) from "employee net pay" (what lands in their bank account).
This calculator provides estimates for informational purposes only. Actual tax obligations may vary. Always verify current rates with your state's tax agency or consult a qualified tax professional.
Learn more
Arkansas Tax Guide
Full compliance requirements for AR household employers.
Nanny Cost by State
See how Arkansas compares to all 50 states for total employer costs.
Arkansas Nanny Contract
Free contract builder with AR-specific requirements.
Complete Tax Guide
Everything you need to know about nanny taxes.
NannyKeeper handles Arkansas taxes automatically
All AR tax calculations, documents, and deadline reminders—starting at $10/month.
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