Roth conversion taxes in Arkansas (2026)
By Mario Bailey · Published · Last reviewed
Arkansas taxes Roth conversions as ordinary income at graduated rates up to 3.9%. A conversion adds to your state taxable income in the year you convert, on top of federal tax. The table below shows the computed Arkansas tax on a $50,000 conversion at three baseline income levels, using 2026 rates.
Computed example: $50,000 conversion
State tax only (federal not included), age 66, standard deduction, no other state adjustments. Computed with the same functions the calculator uses.
| Filing status | Baseline income | State tax without conversion | With $50,000 conversion | Tax on the conversion | Effective rate |
|---|---|---|---|---|---|
| Single | $40,000 | $846 | $2,796 | $1,950 | 3.9% |
| Single | $80,000 | $2,406 | $4,356 | $1,950 | 3.9% |
| Single | $150,000 | $5,136 | $7,086 | $1,950 | 3.9% |
| Married filing jointly | $40,000 | $750 | $2,700 | $1,950 | 3.9% |
| Married filing jointly | $80,000 | $2,310 | $4,260 | $1,950 | 3.9% |
| Married filing jointly | $150,000 | $5,040 | $6,990 | $1,950 | 3.9% |
Social Security and retirement income
Arkansas does not tax Social Security benefits. A conversion can still raise the federally taxable share of your benefits through the provisional income formula. Arkansas also excludes up to $6,000 of retirement income for filers age 60 and over, which can shelter part of a conversion depending on how the state defines eligible retirement income.
Arkansas brackets are the same for all filing statuses. SS is exempt for filers with federal AGI below $100,000 (conservative assumption applied here; high-income filers may owe AR tax on SS). Retirement income exclusion $6,000 for age 59.5+. A future cut to 3.7% is legislatively triggered but not yet confirmed for 2026.
FAQ
Does Arkansas tax Roth conversions?
Yes. Arkansas taxes Roth conversions as ordinary income at graduated rates up to 3.9%. Federal tax applies on top.
Does Arkansas tax Social Security benefits?
No. Social Security benefits are not subject to Arkansas income tax.
What is the top Arkansas rate on a conversion in 2026?
3.9% at the highest marginal rate.
Model your Arkansas conversion in the calculator
Rate data source: Arkansas Department of Finance and Administration, Individual Income Tax 2026 (dfa.arkansas.gov); top rate 3.9% per 2026 withholding tables