Arkansas Bonus Paycheck Calculator

A bonus paid in Arkansas is withheld at the flat 22% federal supplemental rate in 2026 (37% on amounts above $1 million), plus FICA of 7.65% and Arkansas's graduated income tax (2% to 3.9%). Your final tax bill is settled when you file, not at withholding.

How are bonuses taxed in Arkansas?

In Arkansas, your employer withholds a flat 22% federal supplemental rate and 7.65% FICA, plus Arkansas's graduated income tax (2% to 3.9%) — so roughly 30–35% of a bonus is typically withheld up front. Withholding isn't your final tax — at filing time a bonus is ordinary income, so any over-withholding comes back as a refund.

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Most common — a flat 22% federal rate is withheld on the bonus.

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How Arkansas bonus withholding works

Short answer: your employer withholds a flat 22% for federal income tax (the supplemental rate), plus 7.65% for Social Security and Medicare, plus Arkansas withholding on top — typically 30–35% of a Arkansas bonus withheld up front. Bonuses aren't actually taxed at a higher rate, though: at tax time they're ordinary income, and any over-withholding comes back in your refund. Here's how each piece works.

  • Federal supplemental rate: Most employers withhold federal income tax from bonuses at a flat 22% (or 37% for amounts over $1 million per year), regardless of your regular tax bracket.
  • Arkansas state tax: Bonus income is ultimately taxed through Arkansas's graduated income tax (2% to 3.9%). The calculator estimates the Arkansas share based on your inputs.
  • FICA taxes still apply: Social Security (6.2% up to the annual wage base) and Medicare (1.45%, plus 0.9% for high earners) are withheld from bonuses just like regular wages.
  • Over-withholding is common: The flat 22% federal rate is often higher than your actual effective rate. You'll receive the difference back as a tax refund when you file your annual return.

Your actual bonus tax depends on your total annual income, not just the bonus amount. The calculator gives you an estimate based on your inputs.

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Frequently Asked Questions

Typically 30–35%: a flat 22% federal supplemental withholding, 7.65% FICA, and Arkansas's graduated income tax (2% to 3.9%). Your actual tax owed depends on your full-year income and may be lower — the difference comes back as a refund when you file.

The IRS requires employers to withhold federal income tax from supplemental wages (including bonuses) at a flat 22% rate for amounts up to $1 million. For bonus amounts exceeding $1 million in a calendar year, the rate jumps to 37%. Your employer may alternatively add the bonus to your regular paycheck and withhold using the aggregate method.

It depends on your total annual income and tax bracket. If the 22% flat withholding rate is higher than your actual effective tax rate on the bonus, you'll receive a refund. If you're in a higher bracket and the withholding was insufficient, you may owe additional taxes. Our calculator estimates both the withheld amount and your approximate actual tax liability.

Yes — as regular income. Some employers withhold Arkansas tax on bonuses at a supplemental rate, but what you ultimately owe is determined by Arkansas's graduated income tax (2% to 3.9%) applied to your full-year income.

Splitting a bonus across pay periods can sometimes reduce withholding if your employer uses the aggregate method, which annualizes your income. However, it doesn't change your actual tax liability—only the timing of withholding. For very large bonuses that push income past the $1 million threshold, splitting payments can avoid the 37% withholding rate on the excess.

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Estimates are based on current federal and Arkansas tax rules. Actual withholding may vary depending on your employer's method and your full-year income.

For personalized advice, consult a qualified tax professional.