Arkansas Nanny Tax Guide
Arkansas has a progressive income tax with a $4,400 exemption on the first portion of income. The state requires unemployment insurance but has no disability or paid leave mandates.
Minimum Wage
$11.00/hour
SUTA Rate Range
0.1% - 14.0%
Key Things to Know
- Progressive state income tax (2% - 4.4%)
- State minimum wage is $11.00/hour
- No disability insurance requirement
- First $4,400 of income is exempt from state tax
Arkansas Employer Requirements
State Income Tax
Arkansas uses progressive tax brackets ranging from 2% to 4.4%. The first $4,400 of income is exempt. Higher earners pay the top rate of 4.4%.
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.
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
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2026 Tax Deadline Calendar
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NannyKeeper handles Arkansas taxes automatically
We calculate and track all state-specific requirements so you don't have to.
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