Live in Mississippi, work in Arkansas
Without wage reciprocity, the work state may tax wages earned there. Your home state generally offers a limited credit for eligible tax paid on the same income. Filing requirements, credit limits and local taxes need a separate check.
Official tax guidance for both states
Check withholding, filing requirements and current forms with each state's tax agency.
- Mississippi: Department of Revenue (opens in new tab)
- Arkansas: Arkansas Department of Finance & Administration (opens in new tab)
Agency directory checked 2026-10-01 against the IRS state-government directory. This verifies the agency links, not an individual tax result. Use forms for the year you are filing.
Before you use this estimate
This model assumes a full-year resident of Mississippi, ordinary employee wages and all workdays physically in Arkansas. Check exemption eligibility before treating a work-state amount of $0 as your own result. Withholding is a prepayment, not final tax liability. Other income, a move during the year, remote work and separate local taxes or credits can change the result.
State income tax: $3,687 a year
Modeled annual state income tax for living in Mississippi and working in Arkansas: about $3,687 on $100,000 of wages, $419 more than if you worked in Mississippi.
Without wage reciprocity, the work state may tax wages earned there. Your home state generally offers a limited credit for eligible tax paid on the same income. Filing requirements, credit limits and local taxes need a separate check.
Tax guide and official sources: live in Mississippi, work in Arkansas
Official agency starting points: Mississippi tax agency (opens in new tab) · Arkansas tax agency (opens in new tab). These directory links identify the selected states' agencies, not your filing obligations. Check their individual-tax guidance and forms for the year you are filing.
This is the usual filing pattern, not a determination that you must file. Filing thresholds, age or dependent status, other income and withholding refunds can change which returns you need.
How this $100,000 estimate adds up
These steps follow the selected home, work state, salary and filing status. They reconcile the model's annual liability, not the amounts withheld from your paycheck.
| Step | Arkansas work state | Mississippi home state |
|---|---|---|
| Tax before the modeled other-state credit | $3,687 | $3,268 |
| Modeled other-state credit subtracted | $0 | $3,268 |
| Tax after that credit | $3,687 | $0 |
Total: $3,687 + $0 = $3,687 a year. Amounts are rounded for display. Work-state wage exemptions, when applicable, are already reflected in the first row; they are not an other-state credit.
The modeled credit is applied in Mississippi, the home state. Actual eligibility and credit limits require the state instructions. Included county components stay in these amounts; excluded local taxes and credits stay excluded. Federal income tax, payroll programs and refund eligibility are outside this reconciliation.
State tax at different salaries
| Wages | To AR | To MS | Modeled total | If you worked in MS |
|---|---|---|---|---|
| $50,000 | $1,415 | $0 | $1,415 | $1,268 |
| $75,000 | $2,390 | $0 | $2,390 | $2,268 |
| $100,000 | $3,687 | $0 | $3,687 | $3,268 |
| $150,000 | $5,637 | $0 | $5,637 | $5,268 |
| $250,000 | $9,537 | $0 | $9,537 | $9,268 |
Single filer, all wages earned in Arkansas, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Ask your employer to withhold Arkansas tax. If Mississippi's tax is higher, withhold the difference for Mississippi too (or make estimated payments) to avoid an underpayment penalty.
- File the Arkansas nonresident return first, then claim the credit for taxes paid to another state on your Mississippi resident return.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Frequently asked questions
Do I pay Arkansas income tax if I live in Mississippi?
Yes. Arkansas taxes wages earned there by nonresidents. On $100,000 that's about $3,687.
Do I have to file taxes in both Mississippi and Arkansas?
Usually yes: a nonresident return in Arkansas and a resident return in Mississippi, where you claim a credit for the tax paid to Arkansas. File the Arkansas return first.
Will I be taxed twice?
The modeled state credit reduces overlap on eligible wages; separate local taxes or sourcing differences can still leave additional tax. Mississippi credits the tax you pay Arkansas, so your total is about $3,687 on $100,000, compared with $3,268 if you also worked in Mississippi. Local city or county taxes may still apply.
Related
- Live in Arkansas, work in Mississippi
- Moving from Mississippi to Arkansas
- Moving from Arkansas to Mississippi
- Live in Mississippi, work in Alabama
- Live in Mississippi, work in Louisiana
- Live in Mississippi, work in Tennessee
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.