Arkansas Nanny Tax Guide
Arkansas excludes domestic service wages from the definition of 'wages' entirely, so household employers don't withhold state income tax from their nanny's paycheck. The nanny remains responsible for any income tax they owe at year-end. Employer-side SUI is still required.
Arkansas household employer quick facts
SUTA Rate Range
0.1% - 14.0%
- No state income tax withholding for domestic workers
- State minimum wage is $11.00/hour
- No disability insurance requirement
- Employer SUI still required on the first $7,000 in wages
Arkansas Employer Requirements
State Income Tax (Exempt)
Ark. Code Ann. § 26-51-902(12)(A) excludes remuneration paid for domestic service in a private home from the definition of 'wages' under the Arkansas Income Tax Withholding Act. No withholding required or permitted on these wages.
State Unemployment Insurance
Employers pay SUI tax on the first $7,000 of wages. New employer rate is 3.1%, with rates ranging from 0.1% to 14.0% based on experience.
Workers' Compensation
Workers' compensation is generally not required for household employers but is recommended for protection against workplace injury claims.
Arkansas household employer questions
What will it cost?
Wondering what you'll actually owe as a Arkansas employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.
This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.
Learn More
Calculate Your AR Nanny Taxes
Free calculator pre-filled for Arkansas employer costs.
Run a Arkansas household employer audit
See what the IRS would flag about how you've been paying your nanny in Arkansas.
Arkansas Nanny Contract
Free contract builder with AR-specific requirements.
2026 Tax Deadline Calendar
All quarterly deadlines for Arkansas and federal taxes.
Complete Guide to Nanny Taxes
Everything you need to know about household employment taxes.
Nanny Cost by State
Compare Arkansas employer costs to all 50 states.
NannyKeeper handles Arkansas taxes automatically
We calculate and track all state-specific requirements so you don't have to.
Get Started Free