Arkansas Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Arkansas state income tax as a freelancer or 1099 contractor. Arkansas has a progressive income tax with a top rate of 4.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$3,074
Total Tax Owed
$20,465

Summary

Total Income
$75,000
Total Taxes
-$20,465
After-Tax Income
$54,535
Effective Tax Rate(on total income)
27.3%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,116
Q2 (Apr-May)Due June 15
$5,116
Q3 (Jun-Aug)Due September 15
$5,116
Q4 (Sep-Dec)Due January 15 (next year)
$5,116
Each Quarterly Payment
$5,116

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,116. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Arkansas Tax Overview for Freelancers

Arkansas has a progressive income tax with a top rate of 4.4%. The state has been gradually reducing rates in recent years. Self-employed individuals in Arkansas pay federal self-employment tax (15.3%) plus federal income tax, and Arkansas state income tax on their net self-employment earnings.

Progressive rates up to 4.4%State has been reducing rates$6,000 retirement income exemption

Self-Employment Taxes in Arkansas

If you work as a freelancer or independent contractor in Arkansas, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Arkansas state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Arkansas Income Tax for Freelancers

Arkansas has a progressive income tax with a top rate of 4.4%. The state has been gradually reducing rates in recent years.

Cost of Living for Freelancers in Arkansas

Arkansas has one of the lowest costs of living in the US, approximately 14% below the national average. As a freelancer in Arkansas, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Arkansas Freelancers

  • Arkansas has been cutting income tax rates — your effective rate may be lower than you expect
  • The low cost of living in Arkansas means your take-home pay stretches further than in most states
  • Arkansas taxes retirement income but offers a $6,000 exemption
  • Consider the impact of local income taxes in some Arkansas cities

Key Arkansas Tax Features

  • Progressive rates up to 4.4%
  • State has been reducing rates
  • $6,000 retirement income exemption

Model Your Arkansas Freelance Finances Over Time

This calculator shows your Arkansas tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare Arkansas with Other States

Missouri4.8% top rateTennesseeNo income taxMississippi4.7% top rateCalifornia13.3% top rateNew York10.9% top rateMassachusetts5% top rate

Frequently Asked Questions

How is self-employment tax calculated in Arkansas?
Self-employed workers in Arkansas pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Arkansas state income tax. Arkansas has a progressive income tax with a top rate of 4.4%. The state has been gradually reducing rates in recent years.
How much will I owe in quarterly taxes as a freelancer in Arkansas?
Your quarterly estimated tax payment in Arkansas depends on your total tax liability — including SE tax, federal income tax, and Arkansas state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Arkansas freelancers?
Freelancers in Arkansas can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Arkansas state taxable income, providing additional state tax savings.
Does Arkansas have any special taxes for self-employed workers?
Arkansas does not have a separate self-employment tax. However, your net self-employment income is subject to Arkansas's regular income tax (4.4% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Arkansas?
The decision to form an LLC or S-Corp in Arkansas depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Arkansas tax professional for advice specific to your situation.

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Gross Income$65,000
Federal Tax-$7,462
State Tax-$2,384
FICA + Medicare-$4,973
Net Pay$50,181
Monthly$4,182/mo
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Final Balance$745,620
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