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Dependent Care FSA in Arkansas 2026

Calculate your dependent care fsa tax savings in Arkansas. With Arkansas's 4.7% top state tax rate, your combined savings are higher.

Arkansas Tax Overview

State Income Tax
4.7%
progressive
Sales Tax
6.5%
avg combined: 9.44%
Property Tax Rate
0.62%
Median Income
$52,528

Top rate reduced to 4.7%. 50% capital gains exclusion on Arkansas assets. Highest combined sales taxes.

Arkansas Income Tax Brackets (Single)

0%
$0 - $4,400
2%
$4,400 - $8,800
3%
$8,800 - $13,100
3.4%
$13,100 - $22,200
4.4%
$22,200 - $38,500
4.7%
$38,500 +
Your bracket
$1,335
Est. Total Savings
$5,000
Max Deduction
Pre-Tax
Deduction Type
26.7%
Combined Tax Rate

Dependent Care FSA Savings Calculator for Arkansas

$
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Federal Savings

$1,100

22% bracket

Arkansas State

$235

4.7% rate

Total Savings

$1,335

26.7% combined

At a 26.7% combined tax rate in Arkansas, every $1,000 in deductions saves you $267 in taxes.

Savings by Tax Bracket in Arkansas

10%
$735
12%
$835
22%
$1,335
24%
$1,435
32%
$1,835
35%
$1,985
37%
$2,085

Includes 4.7% Arkansas state tax on top of federal savings.

Eligibility Requirements

Employees with employer-offered Dependent Care FSA

  • 1$5,000 limit
  • 2Child under 13
  • 3Both spouses must work

Arkansas residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 4.7%.

Common Mistakes to Avoid

  • !Combining with credit for same expenses
  • !Use it or lose it
  • !Forgetting to claim the deduction on your Arkansas state return (missing up to 4.7% additional savings)

Arkansas Filing Tips

Maximize the 50% capital gains exclusion on Arkansas-based business or property sales. The state standard deduction is low ($2,340 single), so itemizing may be worthwhile.

Required Tax Forms

W-2

File these forms with your federal tax return to claim the dependent care fsa. Arkansas may require additional state-specific forms.

Other Tax Deductions in Arkansas

Child Tax Credit

Family

~$2,000
est. savings

Child & Dependent Care Credit

Family

~$1,200
est. savings

Earned Income Tax Credit (EITC)

Family

~$3,500
est. savings

Adoption Tax Credit

Family

~$10,000
est. savings

Alimony Deduction (Pre-2019)

Family

~$6,068
est. savings

Head of Household Filing Status

Family

~$2,427
est. savings

Qualifying Surviving Spouse

Family

~$3,641
est. savings

Kiddie Tax Planning

Family

~$3,034
est. savings

Dependent Care FSA in Neighboring States

Missouri

4.8% top rate (progressive)

~$1,340
+5 vs Arkansas

Tennessee

No state income tax

~$1,100
-235 vs Arkansas

Mississippi

4.7% top rate (flat)

~$1,335

Louisiana

3% top rate (flat)

~$1,250
-85 vs Arkansas

Texas

No state income tax

~$1,100
-235 vs Arkansas

Oklahoma

4.75% top rate (progressive)

~$1,338
+3 vs Arkansas

Tax Calculators for Arkansas Cities

Little RockFayettevilleFort SmithSpringdaleJonesboroRogersConwayNorth Little RockBentonville

Calculate Your Full Tax Savings in Arkansas

Use our free tax calculators to optimize your entire tax return for Arkansas.

Income Tax CalculatorArkansas Income TaxFull Dependent Care FSA Guide

Frequently Asked Questions

How much can I save with the Dependent Care FSA in Arkansas?

In Arkansas, the dependent care fsa can save you an estimated $1,335 per year on a $5,000 deduction. This includes $1,100 in federal tax savings and $235 in Arkansas state tax savings at the 4.7% marginal rate. The national average savings is $1,100/year.

What is the Arkansas state income tax rate?

Arkansas has a progressive income tax system with a top rate of 4.7%. Top rate reduced to 4.7%. 50% capital gains exclusion on Arkansas assets. Highest combined sales taxes.

Who qualifies for the Dependent Care FSA in Arkansas?

Employees with employer-offered Dependent Care FSA. The eligibility requirements are the same whether you live in Arkansas or another state, as this is a federal tax deduction. However, your total savings will vary based on Arkansas's 4.7% top state tax rate.

What tax forms do I need to claim the Dependent Care FSA in Arkansas?

To claim the dependent care fsa, you need to file W-2 with your federal return. Arkansas residents should also check if the state allows this deduction on their state return for additional savings of up to 4.7%. Filing status affects your deduction limits and tax bracket.

Is the Dependent Care FSA better in Arkansas than in states without income tax?

Yes, Arkansas residents benefit more because the state's 4.7% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 26.7% means more savings per dollar deducted.

What is the standard deduction in Arkansas for 2026?

Arkansas's standard deduction is $2,340 for single filers and $4,680 for married filing jointly. Maximize the 50% capital gains exclusion on Arkansas-based business or property sales. The state standard deduction is low ($2,340 single), so itemizing may be worthwhile.

Related Calculators

Child Tax Credit in Arkansas

Avg savings: $2,000/year

Child & Dependent Care Credit in Arkansas

Avg savings: $1,200/year

Earned Income Tax Credit (EITC) in Arkansas

Avg savings: $3,500/year

Adoption Tax Credit in Arkansas

Avg savings: $10,000/year

Alimony Deduction (Pre-2019) in Arkansas

Avg savings: $5,000/year

Head of Household Filing Status in Arkansas

Avg savings: $2,000/year