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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%

2026 range across employers

Key facts for Arkansas household employers

  • Minimum wage: $7.25/hour. That is the federal floor, because the state's own rate only covers households with 4 or more employees. (compare nationwide)
  • No state income tax withheld from your nanny's pay (they file it themselves)
  • Arkansas's $11.00/hour minimum covers households with 4 or more employees. Otherwise the federal $7.25/hour floor applies.
  • No disability insurance requirement

Arkansas nanny tax FAQ

How does the calculator estimate Arkansas nanny taxes?

It adds up everything you owe as the employer in Arkansas, on top of your nanny's wages.

  • Federal FICA: 15.3% combined, split between you and your nanny
  • Federal FUTA: 0.6% effective on the first $7,000
  • Arkansas SUTA: 0.1% - 14%

Arkansas does tax individual income, but it does not require that tax to be withheld from a household employee's pay, so it never enters your employer cost. Your nanny still reports the wages on their own Arkansas return. Figures are 2026 rates and use the 2026 FICA threshold of $3,000.

Does Arkansas require state income tax withholding from a nanny's paycheck?

No. You are not required to withhold Arkansas income tax from your nanny's pay, and NannyKeeper does not.

  • Arkansas treats domestic service in a private home as exempt from withholding
  • Arkansas does tax income, so your nanny reports these wages and pays what they owe on their own Arkansas return

Arkansas DFA Withholding Tax Employer's Instructions, rev. 07/01/2024, p.5

What's the minimum hourly rate I can pay a nanny in Arkansas?

At least $7.25 an hour for a nanny in Arkansas.

  • Arkansas's own minimum wage of $11.00/hour only covers households with 4 or more employees, so the federal floor governs for a smaller household
  • Some cities and counties may set a higher floor, so check your locality before you set a rate
  • Overtime is 1.5x pay for hours over 40 in a week, under the FLSA
  • Live-in nannies are exempt from FLSA overtime, but not from minimum wage

Ark. Code § 11-4-203

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 and Schedule H
  • Arkansas state unemployment insurance still applies on the employer side

Why does my Arkansas nanny's net pay differ from the calculator total?

Because they answer different questions. The calculator's employer total is what leaves your account; net pay is what lands in your Arkansas nanny's.

  • Federal FICA: 6.2% Social Security plus 1.45% Medicare, so 7.65% off the top
  • Any federal income tax your nanny chose to have withheld

Your own share, the employer FICA match plus FUTA and SUTA, sits on top of gross pay rather than coming out of it.

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.

Verified accurate as of June 2026Sources: Arkansas tax agency, IRS Publication 926

NannyKeeper calculates Arkansas taxes on every paycheck

All AR tax calculations, documents, and deadline reminders, starting at $10/month.

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