Arctic permafrost landscapes feature many water bodies. In contrast to the terrestrial parts of the landscape, the water bodies release carbon to the atmosphere. We compare carbon dioxide and methane fluxes from small water bodies to the surrounding tundra and find not accounting for the carbon dioxide emissions leads to an overestimation of the tundra uptake by 11 %. Consequently, changes in hydrology and water body distribution may substantially impact the overall carbon budget of the Arctic.