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Arkansas Payroll Taxes for Employers (2026): SUTA and State Programs

Last updated: 2026-10-12 · 2026 rates checked against Arkansas Division of Workforce Services's own pages and the other official sources below

Arkansas employers pay state unemployment tax (SUTA) on the first $7,000 of each employee's wages in 2026, and new employers pay 2% — at most $140.00 per employee for the year. Every Arkansas employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).

SUTA wage base
$7,000
per employee, 2026
New-employer rate
2%
2026
New-employer max
$140.00
SUTA per employee per year
FUTA
0.6%
$42 per employee

What will payroll taxes cost me in Arkansas?

Enter your headcount and average pay to see the employer's share of Arkansas and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.

Arkansas employer payroll tax estimator · 2026

Runs in your browser · nothing is sent anywhere
2% is the 2026 new-employer rate. Enter your assigned rate once you have one.
Estimated annual employer payroll taxes
TaxPer year
Arkansas unemployment (SUTA)
2% × first $7,000 per employee
$700
Federal unemployment (FUTA)
0.6% × first $7,000 after the full state credit
$210
Social Security (employer half)
6.2% × first $184,500
$15,500
Medicare (employer half)
1.45% of all wages
$3,625
Total employer taxes$20,035
Per employee$4,007

Assumes every employee earns the average and works in Arkansas all year. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.

Arkansas unemployment insurance tax (SUTA) in 2026

2026 taxable wage base
$7,000 per employee (47th highest of 51)
New-employer rate
2%
How the new-employer rate works
Arkansas DWS lists a 2026 new-employer rate of 2.0% and, on a separate line, a 0.2% stabilization rate; check your rate notice for how they combine.
Most a new employer pays per employee
$140.00 (2% × $7,000)
Experience-rated range (2026, as published)
0.2% to 5.1%. Deficit-account employers pay 6.1%, 8.1% or 10.1%.
2025 average employer rate
0.83% of taxable wages (U.S. DOL)
Employee contribution
None — employer-paid only
Agency
Arkansas Division of Workforce Services

Same $7,000 wage base as California, Florida, Louisiana and Tennessee. Register with Arkansas Division of Workforce Services when you first pay wages in Arkansas; you get an account number for quarterly wage reports and tax payments.

Federal payroll taxes every Arkansas employer pays

  • Social Security: 6.2% from you and 6.2% withheld from the employee, on wages up to $184,500 in 2026.
  • Medicare: 1.45% each on all wages; withhold an extra 0.9% (employee only) on wages over $200,000.
  • FUTA: 6.0% of the first $7,000 per employee, less up to 5.4% credit for Arkansas unemployment tax paid on time = 0.6%, or $42 per employee.
  • Federal income tax withholding from each paycheck based on the employee's Form W-4.

Next for Arkansas employers: Arkansas paycheck calculator (employee withholding) · Arkansas new hire reporting · Arkansas payday & final paycheck rules · Arkansas workers' comp · full payroll cost calculator

Arkansas payroll tax FAQ

What is the Arkansas SUTA rate for new employers in 2026?

2%. Arkansas DWS lists a 2026 new-employer rate of 2.0% and, on a separate line, a 0.2% stabilization rate; check your rate notice for how they combine.

What is the Arkansas SUTA wage base for 2026?

$7,000 per employee. Once an employee's 2026 wages pass that amount, you stop paying Arkansas unemployment tax on them for the rest of the year. That is the 47th highest wage base of the 50 states and DC (the federal FUTA base is $7,000).

Do employees pay unemployment tax in Arkansas?

No. In Arkansas unemployment tax is paid only by the employer; it can't be deducted from pay. Only Alaska, New Jersey and Pennsylvania collect an employee share.

What other payroll taxes do Arkansas employers pay?

For 2026, Arkansas has no statewide paid-leave or disability payroll tax, so the state-level employer tax is unemployment insurance. You still withhold any state income tax from employees' pay.

How much FUTA do Arkansas employers pay?

0.6% of the first $7,000 of each employee's wages — $42 per employee per year — after the full 5.4% credit for paying Arkansas unemployment tax on time. Arkansas is not a credit-reduction state for 2026.

How does my Arkansas SUTA rate change after the first years?

New employers keep the new-employer rate until they have enough history to be experience-rated (the timing is set by state law). After that, Arkansas Division of Workforce Services assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 0.2% to 5.1% (Deficit-account employers pay 6.1%, 8.1% or 10.1%). Use the rate on your annual rate notice. The 2025 average employer rate in Arkansas was 0.83% of taxable wages.

Official Sources

Figures checked against these sources on 2026-10-12

Related Resources on This Site

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General information, not tax advice. Rates change every year; confirm yours on the notice from Arkansas Division of Workforce Services before filing.