Live in Arkansas, Work in New Hampshire: Which State Taxes Your Paycheck?
Answer
Arkansas taxes the income and New Hampshire cannot. Residency, not the location of the job, drives this answer: Arkansas reaches all of a resident's income, and New Hampshire has no personal income tax to apply to the part earned inside its borders.
Last verified
The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. New Hampshire 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 | New Hampshire | |
|---|---|---|
| Taxes wages | Yes — graduated | No |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form AR1000NR | Not applicable |
| Credit for other-state tax | Form AR1000TC | No income tax |
| Nonresident safe harbour | None published | Not applicable |
| Local income tax | No | No |
| Revenue department | Arkansas Department of Finance and Administration | New Hampshire Department of Revenue Administration |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in New Hampshire and working in Arkansas gives:Work 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.
- Remote worker: Arkansas → New HampshireHome state only
- 1099 contractor: Arkansas → New HampshireHome state only — estimated payments
- Moved mid-year: Arkansas → New HampshireOne part-year return — the state you left
Other Arkansas pairs
Questions people actually ask
I live in Arkansas and work in New Hampshire. Which state takes the tax out of my paycheck?
Arkansas taxes the income and New Hampshire cannot. Residency, not the location of the job, drives this answer: Arkansas reaches all of a resident's income, and New Hampshire has no personal income tax to apply to the part earned inside its borders.
Which state should my employer be withholding for?
Arkansas. Your employer should withhold Arkansas tax rather than New Hampshire tax on these wages. If a New Hampshire line is showing on your pay stub, raise it with payroll now rather than at filing time.
How current is this?
The Arkansas and New Hampshire rules on this page were last checked against Arkansas Department of Finance and Administration and New Hampshire Department of Revenue Administration 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
- New Hampshire Department of Revenue Administration — individual income taxaccessed 2026-08-07