ARKANSAS CAPITAL GAINS TAX · TAX YEAR 2026
Arkansas capital gains tax calculator
Arkansas taxes only 50% of a net long-term capital gain, exempts net capital gain above $10,000,000, and taxes short-term gains in full, at its ordinary rates up to 3.7%. On a $50,000 long-term gain with $75,000 of wages, a single filer owes $1,202 of Arkansas tax and $7,500 of federal income tax, $8,702 in all, and keeps $41,298.
Tax on your gain
- Total tax on the gain
- $8,702.26
- Federal income tax
- $7,500.00
- Net investment income tax
- $0.00
- Arkansas tax
- $1,202.26
- After-tax gain
- $41,297.74
- Effective rate
- 17.40%
- Gain Arkansas excludes
- $25,000.00
Arkansas tax by size of gain
What a single filer with $75,000 of wages owes on a long-term gain, and the state tax if the same gain were short-term. Federal tax includes the net investment income tax.
| Gain | Federal tax | State tax | State tax if short-term |
|---|---|---|---|
| $10,000 | $1,500 | $185 | $370 |
| $50,000 | $7,500 | $1,202 | $2,137 |
| $100,000 | $15,000 | $2,137 | $3,987 |
| $250,000 | $42,250 | $4,912 | $9,537 |
| $1,000,000 | $208,920 | $18,787 | $37,287 |
Arkansas capital gains tax questions
Does Arkansas tax capital gains?
Yes. Arkansas taxes only 50% of a net long-term capital gain, exempts net capital gain above $10,000,000, and taxes short-term gains in full, at its ordinary rates up to 3.7%.
How much Arkansas tax is due on a capital gain?
A single filer with $75,000 of wages owes $1,202 of Arkansas tax on a $50,000 long-term gain, 2.4% of the gain, and $4,912, 1.96%, on a $250,000 gain. Federal tax on the same gains is $7,500 and $42,250.
Does Arkansas tax short-term capital gains differently?
Yes. A $10,000 short-term gain owes $370 of Arkansas tax, against $185 on a long-term gain. Federal tax on it is $2,200, against $1,500.
What the calculator leaves out
- Gain from a qualifying venture capital investment is exempt, and gain on qualified small business stock has its own deduction.
Federal tax stacks the gain on wages after the 2026 standard deduction, taxes a long-term gain at the long-term capital gains rates and a short-term gain at the ordinary brackets, and adds the net investment income tax. The gain is the only investment income. Capital losses and carryovers, qualified dividends, the collectibles and section 1250 rates, the alternative minimum tax and credits are left out; enter a home sale's gain after any federal exclusion.
Sources
- IRS Topic 409, Capital gains and losses
- IRS Revenue Procedure 2025-32: 2026 capital gains thresholds
- IRS: net investment income tax
- Arkansas 2025 Form AR1000D, capital gains and losses
- Arkansas DFA: Arkansas tax exemptions report (January 2025)
- Act 1 of the 2026 First Extraordinary Session: 3.7% top rate and 2026 tables