Live in Arkansas, Work in Oklahoma: Which State Taxes Your Paycheck?
Answer
You file twice: Oklahoma first, then Arkansas. There is no reciprocity agreement between these two states, so Oklahoma taxes the income where it was earned and Arkansas taxes it again as resident income — with the resident credit removing the double charge rather than an exemption form preventing it.
Last verified
Without an agreement between Arkansas and Oklahoma, the overlap is handled after the fact rather than prevented. That is why the filing order matters: the Oklahoma figure is an input to the Arkansas return, so completing Arkansas first means doing it twice.
A Arkansas resident taxed by another state on the same income claims the credit for taxes paid to other states on Form AR1000TC. The credit is capped at the Arkansas tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.
What you file
- 1Nonresident return · OklahomaForm 511-NR
File the Oklahoma nonresident return FIRST — you need the Oklahoma tax figure before you can complete Arkansas.
- 2Resident return · ArkansasForm AR1000TC
File a Arkansas resident return reporting all income, then claim the credit for tax paid to Oklahoma. The credit is capped at what Arkansas would have charged on that same income, so if Oklahoma taxes it at a higher rate the difference is not refunded.
The two states, side by side
| Arkansas | Oklahoma | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form AR1000NR | Form 511-NR |
| Credit for other-state tax | Form AR1000TC | Form 511-TX |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | Arkansas Department of Finance and Administration | Oklahoma Tax Commission |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Oklahoma and working in Arkansas gives:Both states — credit offsets the double tax.
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 → OklahomaHome state only
- 1099 contractor: Arkansas → OklahomaHome state, plus the client state if you work there
- Moved mid-year: Arkansas → OklahomaTwo part-year returns
Other Arkansas pairs
Questions people actually ask
I live in Arkansas and work in Oklahoma. Which state takes the tax out of my paycheck?
You file twice: Oklahoma first, then Arkansas. There is no reciprocity agreement between these two states, so Oklahoma taxes the income where it was earned and Arkansas taxes it again as resident income — with the resident credit removing the double charge rather than an exemption form preventing it.
Which state should my employer be withholding for?
Oklahoma. The wages are sourced to Oklahoma, so Oklahoma withholding is correct and there is no Arkansas withholding to set up.
Will I end up paying tax twice on the same income?
Not twice over, but you will pay the higher of the two rates. Arkansas gives residents a credit for tax paid to Oklahoma on the same income, claimed on Form AR1000TC. The credit is capped at the Arkansas tax on that income, so if Oklahoma taxes it more heavily the excess is not refunded by either state.
How current is this?
The Arkansas and Oklahoma rules on this page were last checked against Arkansas Department of Finance and Administration and Oklahoma Tax Commission 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
- Oklahoma Tax Commission — individual income taxaccessed 2026-08-07