2026 tax year · Arkansas
Marketplace seller taxes in Arkansas
Etsy, eBay, Shopify 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 $6,908 in tax.
Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 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 | $2,575 |
| Federal income tax | $67 |
| Arkansas income tax | $583 |
| Total tax | $3,225 |
| Effective rate on gross | 7.2% |
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 | $15,000 | $0 | $15,000 | $466 | $2,586 | 17.2% |
| Steady side income | $45,000 | $0 | $45,000 | $1,554 | $10,133 | 22.5% |
| Full-time | $72,000 | $0 | $72,000 | $2,532 | $17,335 | 24.1% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Selling into and out of Arkansas
Income tax follows you: Arkansas taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.
On $18,225 of profit, what the states around Arkansas would charge:
| State | Its tax | vs Arkansas |
|---|---|---|
| Tennessee | No income tax | −$633 |
| Texas | No income tax | −$633 |
| Louisiana | $240 | −$394 |
| Missouri | $705 | +$71 |
| Mississippi | $729 | +$96 |
| Oklahoma | $785 | +$152 |
- Tennessee has no income tax at all, so the same work done there costs $633 less in state tax than it does in Arkansas.
- Texas has no income tax at all, so the same work done there costs $633 less in state tax than it does in Arkansas.
- Louisiana would take $394 less, $240 against Arkansas's $633.
- Missouri would take $71 more, $705 against Arkansas's $633.
- Mississippi would take $96 more, $729 against Arkansas's $633.
- Oklahoma would take $152 more, $785 against Arkansas's $633.
Marketplace seller tax questions in Arkansas
How much should an Arkansas seller set aside?
About 7.2% of gross on the $45,000 example, $3,225 across self-employment tax, federal income tax and $583 to Arkansas. Set aside from each payout rather than finding it in April.
Does the $45,000 on my 1099-NEC match what Arkansas taxes?
No. Arkansas taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the Arkansas bill is $583 rather than what gross alone would suggest.