Arkansas Capital Gains Tax (2026)
Arkansas taxes capital gains as ordinary income on a graduated scale from 2% up to a top rate of 3.9%. Run your own numbers with the free capital gains tax calculator, which estimates federal, NIIT, and Arkansas tax together.
In short: federal long-term rates of 0%, 15%, or 20% apply everywhere. Arkansas adds state tax on top, at up to 3.9%.
How Arkansas treats capital gains
Arkansas taxes capital gains as ordinary income on a graduated scale from 2% up to a top rate of 3.9%. The estimate subtracts Arkansas's standard deduction ($2,470 single / $4,940 married).
Good news if you hold long. Arkansas gives long-term gains a partial exclusion or reduced rate that this site's flat estimate does not model, so your actual Arkansas tax on a long-term gain may be lower than the ordinary-income estimate shown by the calculator.
2026 Arkansas income tax brackets
| Taxable income | Rate |
|---|---|
| $0 – $4,600 | 2% |
| Over $4,600 | 3.9% |
Single-filer taxable income. Married thresholds are doubled.
A worked example
Say you are a single filer in Arkansas with $60,000 of taxable income who sells stock held over a year for a $25,000 long-term gain. Federal tax on the gain is $3,750 (all of it lands in the 15% bracket at this income; no NIIT applies below $200,000 MAGI). Arkansas adds an estimated $975, for a combined $4,725, an effective 18.9% on the gain. These figures use the same math as the calculator, 2026 federal brackets per IRS Rev. Proc. 2025-32, and state figures from the Tax Foundation's State Individual Income Tax Rates and Brackets, 2026.
Frequently asked questions
Does Arkansas tax capital gains?
Yes. Arkansas taxes capital gains as ordinary income. Arkansas taxes capital gains as ordinary income on a graduated scale from 2% up to a top rate of 3.9%.
What will I pay on a long-term gain in Arkansas?
Combined, our worked example ($25,000 long-term gain on $60,000 of income, single) comes to $4,725: $3,750 federal plus $975 Arkansas tax, an effective 18.9%.
Do I still owe federal capital gains tax in Arkansas?
Yes. Federal capital gains tax (0%, 15%, or 20% long-term, ordinary rates short-term, plus the 3.8% NIIT for high earners) applies no matter your state. The free calculator estimates federal, NIIT, and Arkansas tax together.
More
- Every state's capital gains treatment
- Capital gains tax explained: short-term vs long-term
- Neighbors alphabetically: Arizona · California
This page is general information, not tax, legal, or financial advice. Rates and rules can change and depend on your situation. Confirm details with a tax professional, the IRS, or your state's revenue department.
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