Live in Arkansas, Work Remotely for a Wisconsin Employer: Who Taxes You?
Answer
Your home state takes it and the work state does not. Wisconsin levies no tax on wages; Arkansas taxes residents on all income regardless of where it was earned. The result is a single Arkansas resident return covering the full amount, with no offsetting credit.
Last verified
The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. Wisconsin 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 | Wisconsin | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | None | 4 (Form W-220) |
| Convenience rule | No | No |
| Nonresident return | Form AR1000NR | Form 1NPR |
| Credit for other-state tax | Form AR1000TC | Schedule OS |
| Nonresident safe harbour | None published | Dollar floor published |
| Local income tax | No | No |
| Revenue department | Arkansas Department of Finance and Administration | Wisconsin Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Wisconsin 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 → WisconsinBoth states — credit offsets the double tax
- 1099 contractor: Arkansas → WisconsinHome state, plus the client state if you work there
- Moved mid-year: Arkansas → WisconsinTwo part-year returns
Other Arkansas pairs
Questions people actually ask
I live in Arkansas and work remotely for a Wisconsin employer. Which state do I pay?
Your home state takes it and the work state does not. Wisconsin levies no tax on wages; Arkansas taxes residents on all income regardless of where it was earned. The result is a single Arkansas resident return covering the full amount, with no offsetting credit.
Which state should my employer be withholding for?
Arkansas. Your employer should withhold Arkansas tax rather than Wisconsin tax on these wages. If a Wisconsin line is showing on your pay stub, raise it with payroll now rather than at filing time.
Does my Wisconsin employer's location alone create a Wisconsin tax obligation?
No. Wisconsin 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 Wisconsin are a different matter — those are Wisconsin-source income and can require a nonresident return.
How current is this?
The Arkansas and Wisconsin rules on this page were last checked against Arkansas Department of Finance and Administration and Wisconsin 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
- Wisconsin Department of Revenue — individual income taxaccessed 2026-08-07