2026 tax year · Arkansas
Rental host taxes in Arkansas
Airbnb, Turo and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in Arkansas that gap is worth $2,618 in tax.
Take a driver who grossed $39,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the rental host page $10,100 comes off and $28,900 is left as taxable profit. That profit is what Arkansas and the IRS charge against.
What that leaves you owing in Arkansas
Arkansas uses graduated 2026 income tax brackets topping out at 3.9%, across 3 brackets, on top of federal income tax and self-employment tax.
| Self-employment tax | $4,083 |
| Federal income tax | $861 |
| Arkansas income tax | $970 |
| Total tax | $5,914 |
| Effective rate on gross | 15.2% |
Earning more in Arkansas
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Arkansas tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $13,000 | $0 | $13,000 | $394 | $2,231 | 17.2% |
| Steady side income | $39,000 | $0 | $39,000 | $1,336 | $8,532 | 21.9% |
| Full-time | $63,000 | $0 | $63,000 | $2,206 | $14,935 | 23.7% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Local taxes on an Arkansas let
The income tax below is only part of it. Short-term lets attract occupancy, lodging or transient taxes levied by the city or county rather than Arkansas, often at rates that dwarf the state income tax. Some platforms collect and remit them; some collect only part; in some places the host is on the hook entirely. That is a local question this calculator cannot answer, and it is the one hosts most often get wrong.
On $28,900 of profit, what the states around Arkansas would charge:
| State | Its tax | vs Arkansas |
|---|---|---|
| Tennessee | No income tax | −$1,050 |
| Texas | No income tax | −$1,050 |
| Louisiana | $453 | −$597 |
| Mississippi | $1,156 | +$106 |
| Missouri | $1,217 | +$167 |
| Oklahoma | $1,266 | +$216 |
- Tennessee has no income tax at all, so the same work done there costs $1,050 less in state tax than it does in Arkansas.
- Texas has no income tax at all, so the same work done there costs $1,050 less in state tax than it does in Arkansas.
- Louisiana would take $597 less, $453 against Arkansas's $1,050.
- Mississippi would take $106 more, $1,156 against Arkansas's $1,050.
- Missouri would take $167 more, $1,217 against Arkansas's $1,050.
- Oklahoma would take $216 more, $1,266 against Arkansas's $1,050.
Rental host tax questions in Arkansas
How much should an Arkansas host set aside?
About 15.2% of gross on the $39,000 example, $5,914 across self-employment tax, federal income tax and $970 to Arkansas. Set aside from each payout rather than finding it in April.
Does the $39,000 on my 1099-NEC match what Arkansas taxes?
No. Arkansas taxes profit, not gross. After $10,100 of deductions the taxable figure is $28,900, so the Arkansas bill is $970 rather than what gross alone would suggest.