Arkansas variant. This is a Arkansas-specific version of the Workers Comp Cost Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Workers Comp Cost Estimator.
Workers' compensation premiums in Arkansas are priced per $100 of payroll, by job classification. On a $56,335 salary at an illustrative $1.00 rate, the annual premium is about $563.
How Arkansas workers' comp is priced
Premium = (payroll ÷ 100) × class rate × experience modifier. Clerical roles carry low rates; construction and trucking carry much higher ones.
Arkansas sets its own rules and rates. The calculator above lets you enter your real payroll, class rate, and mod factor for an accurate Arkansas estimate.
About taxes and housing in Arkansas
Arkansas has a graduated income tax that tops out at a modest rate, and the state has steadily reduced its top rate in recent years.
Arkansas has low property taxes and some of the most affordable home prices in the country.
Arkansas is home to major retail and food-processing companies, with agriculture and timber remaining important to its low-cost-of-living economy.
Worked example: $56,335 payroll
($56,335 ÷ 100) × $1.00 = $563/year at a sample clerical rate. A construction class rate of $8.00 would make it $4,507.
Quick reference
- State income tax: Top rate 4.4% on income over $24,300
- State sales tax: 6.5% (plus 2.97% avg local)
- Median home value: $200,000
- Median household income: $56,335
- Effective property tax rate: 0.61%
- Avg auto insurance: $1,657/yr
Frequently Asked Questions
How is workers' comp calculated in Arkansas?
By payroll ÷ 100 × class rate × experience modifier, using Arkansas's approved rates.
Is workers' comp required in Arkansas?
Most Arkansas employers must carry coverage once they have employees; rules vary by industry and headcount.