Arkansas Income Tax Guide for 2026

Capital gains are taxed at the same rates as ordinary income.

• Act 2 of the 2026 First Extraordinary Session (SB1, approved 5/6/2026) cut the top individual rate from 3.9% to 3.7% effective for tax years beginning on or after January 1, 2026
• Arkansas uses one rate schedule for all filing statuses; the married amounts are two taxpayers' worth of the per-taxpayer standard deduction and tax credits
• Taxpayers with net income over $94,700 use a separate upper-income table (2% on the first $4,700, 3.7% above) and a bracket adjustment phases the low-bracket benefit out between $94,701 and $97,600
• The $29 / $58 / $29 amounts are nonrefundable personal tax credits, not exemptions from income
• Bracket thresholds and the standard deduction are indexed annually. The Department of Finance and Administration had not published 2026 indexed tables as of 2026-09-15, so the tax year 2025 amounts are carried forward; only the rate cut enacted by Act 2 of 2026 is reflected

The 2026 figures for Arkansas on this page were compiled from the following official government publications:

• Act 2 of the First Extraordinary Session, 2026 (SB1) - To Reduce the Income Tax Rates for Individuals, Trusts, Estates, and Corporations (Arkansas General Assembly)
• Fiscal Impact Statement, SB1 (Arkansas Department of Finance and Administration)
• Form AR1000ES, Estimated Tax Declaration Vouchers and Instructions for Tax Year 2026 (Arkansas Department of Finance and Administration)
• Individual Income Tax (Arkansas Department of Finance and Administration)