Live in Arkansas, Work Remotely for a Mississippi Employer: Who Taxes You?
Answer
Arkansas gets all of it. Because Mississippi does not tax wage income, no Mississippi withholding exists and no Mississippi return is required — but Arkansas taxes residents on worldwide income, so every dollar earned in Mississippi still belongs on your Arkansas resident return.
Last verified
The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. Mississippi takes nothing, but Arkansas still taxes residents on income earned anywhere, so the full amount lands on your Arkansas return.
What you file
- 1Resident return · Arkansas
File a Arkansas resident return reporting all of your income.
The two states, side by side
| Arkansas | Mississippi | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — flat |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form AR1000NR | Form 80-205 |
| Credit for other-state tax | Form AR1000TC | Form 80-160 |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | Arkansas Department of Finance and Administration | Mississippi Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Mississippi and working in Arkansas gives:Home state only.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: Arkansas → MississippiBoth states — credit offsets the double tax
- 1099 contractor: Arkansas → MississippiHome state, plus the client state if you work there
- Moved mid-year: Arkansas → MississippiTwo part-year returns
Other Arkansas pairs
Questions people actually ask
I live in Arkansas and work remotely for a Mississippi employer. Which state do I pay?
Arkansas gets all of it. Because Mississippi does not tax wage income, no Mississippi withholding exists and no Mississippi return is required — but Arkansas taxes residents on worldwide income, so every dollar earned in Mississippi still belongs on your Arkansas resident return.
Which state should my employer be withholding for?
Arkansas. Your employer should withhold Arkansas tax rather than Mississippi tax on these wages. If a Mississippi line is showing on your pay stub, raise it with payroll now rather than at filing time.
Does my Mississippi employer's location alone create a Mississippi tax obligation?
No. Mississippi sources wages to the place where the work is physically performed, and it does not apply a convenience-of-the-employer rule that would override that. Days you actually spend working inside Mississippi are a different matter — those are Mississippi-source income and can require a nonresident return.
How current is this?
The Arkansas and Mississippi rules on this page were last checked against Arkansas Department of Finance and Administration and Mississippi Department of Revenue on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Arkansas Department of Finance and Administration — individual income taxaccessed 2026-08-07
- Mississippi Department of Revenue — individual income taxaccessed 2026-08-07