2026 tax year · Arkansas
RSU tax in Arkansas
A $60,000 vest costs $2,340 in Arkansas tax on top of the federal bill. And the federal share withheld is $2,970 short.
What a $60,000 vest actually costs in Arkansas
A single filer already earning $180,000 in salary. The vest stacks on top of that, so it fills the highest brackets rather than starting at the bottom:
| Withheld by your employer at 22.0% | $13,200 |
| Federal tax the vest actually costs | $16,170 |
| Federal shortfall, owed in April | $2,970 |
| Arkansas income tax on the vest | $2,340 |
| Total still to find | $5,310 |
The withholding rate is flat, 22.0% below $1 million of supplemental pay. And takes no account of your salary. That is why the gap grows the more you earn.
The gap widens with salary
| Salary | Withheld | Actually owed | Shortfall | Arkansas tax |
|---|---|---|---|---|
| $90,000 | $13,200 | $13,764 | $564 | $2,340 |
| $160,000 | $13,200 | $14,570 | $1,370 | $2,340 |
| $260,000 | $13,200 | $20,630 | $7,430 | $2,340 |
How Arkansas treats a vest
Arkansas taxes a vest as ordinary income like any other wages, adding $2,340 on top of the federal bill for $60,000 of vesting stock.
If you moved during the vesting period, the income is split between the states you worked in across it: Days worked in each state / total days in vesting period x RSU income = each state's allocation That is worked out day by day, not by where you lived on the vesting date.
What the same vest costs around Arkansas
Total income of $240,000 in the states Arkansas borders:
| State | Its tax | vs Arkansas |
|---|---|---|
| Tennessee | No income tax | −$9,283 |
| Texas | No income tax | −$9,283 |
| Louisiana | $6,575 | −$2,708 |
| Mississippi | $9,600 | +$318 |
| Oklahoma | $10,765 | +$1,483 |
| Missouri | $11,350 | +$2,067 |
- Tennessee has no income tax at all, so the same work done there costs $9,283 less in state tax than it does in Arkansas.
- Texas has no income tax at all, so the same work done there costs $9,283 less in state tax than it does in Arkansas.
- Louisiana would take $2,708 less, $6,575 against Arkansas's $9,283.
- Mississippi would take $318 more, $9,600 against Arkansas's $9,283.
- Oklahoma would take $1,483 more, $10,765 against Arkansas's $9,283.
- Missouri would take $2,067 more, $11,350 against Arkansas's $9,283.
RSU questions in Arkansas
Should I sell at vest?
Selling immediately raises the cash for the $5,310 you still owe and leaves no capital gain, because the sale price equals the price you were already taxed on. Holding turns it into an investment decision, any further gain is a capital gain, and any fall is a loss you take on shares you were already taxed on at the higher value.
I moved to Arkansas mid-vest, who taxes it?
Both states, split by workdays. The income is allocated across the vesting period, not assigned to wherever you happened to live on the vesting date. The state you left can still claim its share, and California, New York and Massachusetts pursue it hardest.