Arkansas tax revenue tops $1 billion in April, up almost 15%

A significant gain in individual income tax revenue and an almost 6% gain in sales tax revenue pushed overall Arkansas tax revenue to $1.079 billion in April, up 14.8% compared with April 2025 and 13.9% above the budget estimate.

Total revenue in the first 10 months of the fiscal year (July 2025-April 2026) is $7.136 billion, up 4.1% compared with the same period in the previous fiscal year, according to Monday’s (May 4) report from the Arkansas Department of Finance and Administration (DFA). The revenue is $189.2 million above the budget estimate, and the state’s surplus is approximately $560 million.

Income tax revenue so far in the fiscal year totals $3.266 billion, up 6.6% compared with the previous fiscal year and 3.9% above the budget forecast. Sales tax revenue in the first 10 months of the fiscal year was $3.031 billion, up 3.8% compared with the same period in the previous fiscal year and 1.4% above the forecast.

Corporate income tax revenue through April was $404.5 million, down $28.7 million from the same period in the previous fiscal year and 6.4% above the forecast.

“All major categories of collection significantly outperformed expectations in April, with results beating forecast and increasing 28% over last year,” DFA Secretary Jim Hudson said in a statement. “Individual and corporate income tax increased from 2025 along with sales tax, which grew by 17%. These are all indicators of a healthy, expanding Arkansas economy.”

The surplus prior to the budget forecast revision was $334 million, with the post-revision surplus at $61.5 million, meaning that if the fiscal year ended in April the revenue surplus would be $365.5 million.

APRIL COLLECTIONS
Following are April collections in the key categories.

Income tax
April 2026: $596.8 million
April 2025: $494.2 million
up 20.7%, 18.2% above budget forecast

Sales tax
April 2026: $320.4 million
April 2025: $302.9 million
up 5.8%, 4.1% above budget forecast

Corporate income tax
April 2026: $127.7 million
April 2025: $111.7 million
up $16 million, $23.3 million above budget forecast

“Collections increased by $102.5 million, or 20.7% compared to last year. Income tax collections increased across all categories compared to the prior year,” the DFA noted in the April report. “Some of the growth can be attributed to lowered payments last April because of the executive orders of Gov. (Sarah) Sanders extending the filing date to July 31. Return and estimated payments displayed double-digit growth while tax withholdings grew 4.9%. Total individual income tax collections were $91.8 million or 18.2% higher than forecast.”

Arkansas ended the previous fiscal year (July 2024 -June 2025) with tax revenue of $8.359 billion, down 4% compared with the previous fiscal year. Tax revenue in the previous fiscal year also resulted in a $367.9 million surplus. The fiscal year ending in June 2024 posted a $698.4 million surplus, and the fiscal year ending June 2023 had a $1.161 billion tax revenue surplus.

OTHER REVENUE SOURCES
Tobacco
July 2025-April 2026: $148.2 million
July 2024-April 2025: $150.8 million

Insurance
July 2025-April 2026: $95.1 million
July 2024-April 2025: $94.3 million

Alcoholic beverages
July 2025-April 2026: $60.4 million
July 2024-April 2025: $61.6 million

Games of skill
July 2025-April 2026: $51.2 million
July 2024-April 2025: $48.8 million

Severance
July 2025-April 2026: $7.7 million
July 2024-April 2025: $9.3 million