📅 2026 Update: Recent Developments in Arkansas Taxation

Since the original article was written, several important changes have occurred in tax laws that impact Arkansas taxpayers. These updates cover new tax legislation, processing times, and available assistance programs. Readers will find the updated information relevant to understanding their tax obligations and options.

📜 New Pass-Through Entity Taxes

Many states have recently enacted Pass-Through Entity Taxes (PTET), similar to Illinois' entity-level tax. Arkansas is not among these states, but taxpayers should be aware of the changes in surrounding states. For example, Hawaii, Iowa, Indiana, Kentucky, and Montana have all introduced PTET laws since 2023.

These changes could affect taxpayers in Arkansas who own businesses or partnerships that operate in these states.

⏳ Processing Times for Forms

Processing times for key tax forms can vary significantly. For instance, the processing times for Form 3911, which is used to trace unreceived refunds, depend on the IRS center. Taxpayers should check the IRS website for the latest updates.

Other forms, such as Form 8716 and Form 1065, also have variable processing times, so checking the IRS site is crucial for timely filing.

📋 Important Tax Forms

Several forms are essential for taxpayers in Arkansas. Form 3911 is for those who have not received their refunds, while Form 8716 allows an automatic extension for certain business returns. Partnerships in Arkansas must file Form 1065 to report income and deductions.

Understanding which forms to use can help streamline the tax filing process.

🤝 Free Assistance Programs

Taxpayers in Arkansas can take advantage of free assistance programs. The IRS Free File service offers free tax preparation for eligible individuals. Additionally, the Volunteer Income Tax Assistance (VITA) program provides help to those who need assistance in filing their tax returns.

These programs can significantly reduce the burden of tax preparation costs.

📌 Key Updates Summary

  • 🏛️ New PTET laws enacted in various states could impact Arkansas taxpayers.
  • ⏱️ Processing times for tax forms can vary; check the IRS website for the latest information.
  • 📄 Important forms include Form 3911 for tracing refunds and Form 1065 for partnerships.
  • 🤲 Free tax assistance programs are available through the IRS and VITA.

💡 Tips for Navigating Arkansas Tax Obligations

Reviewing your tax situation with an attorney is important to ensure compliance with current laws.

📝 Understand Pass-Through Entity Taxes

If you own a business or partnership, check if your entity is subject to PTET in other states. Knowing the rules can help you plan for any potential tax liabilities.

⏲️ Stay Updated on Processing Times

Be aware that processing times for forms can change. Regularly check the IRS website for updates to avoid delays in receiving refunds or processing returns.

📚 Use the Right Forms

Ensure you are using the correct forms for your tax situation. Familiarize yourself with Form 3911 for refunds and Form 8716 for filing extensions. Using the right form is crucial for a smooth tax process.

💰 Take Advantage of Free Resources

Explore free tax assistance programs like IRS Free File and VITA. These resources can help you prepare your taxes without incurring high costs.

📅 Keep Track of Deadlines

Mark important tax deadlines on your calendar. This includes deadlines for filing extensions and submitting necessary forms to avoid penalties.

🏆 Ranked by User Reviews (2026)

This section outlines various tax services relevant to Arkansas taxpayers based on user reviews. The ranking follows Trustpilot data from October 2026, reflecting customer experiences. Ratings may change over time, and remembering that reviews can be influenced by unhappy customers is important.

🥇 1. SMAART Tax

SMAART Tax has been rated 4.4. It is known for providing virtual tax services across all 50 states. Users appreciate the convenience of its online platform.

However, some have noted that it offers limited in-person consultations, which may not suit everyone’s needs.

🥈 2. KBO Tax & Accounting Services

KBO Tax & Accounting Services holds a Trustpilot score of 4.5. It is recognized for nationwide tax preparation and bookkeeping services. Clients benefit from its comprehensive approach to tax and accounting needs.

However, it has limited in-person office locations, which can be a drawback for some.

🥉 3. Jackson Hewitt Tax Service

Jackson Hewitt Tax Service averages a rating of 4.2. It is well-known for its tax preparation services and has locations nationwide. Reviewers appreciate its accessibility and range of services.

Some customers have expressed concerns about customer service responsiveness.

4️⃣ Libre Tax Service

Libre Tax Service has a score of 4.1. It specializes in online tax preparation and offers IRS audit defense. Users find its services helpful, but some have reported challenges navigating its website.

5️⃣ TaxSlayer

TaxSlayer has a rating of 4.0. This service is known for its online tax preparation software at affordable prices. While many find it user-friendly, there are occasional reports of software glitches that can be frustrating for users.

6️⃣ Advanta Tax

Advanta Tax has been rated 4.3. It provides nationwide tax services, focusing on IRS resolution and state tax debt assistance. Clients appreciate its expertise in tax issues, but some have reported delays in service, which can be concerning during tax season.

🆓 Free Tax Assistance Options

There are free tax assistance programs available, including the IRS Free File service and the Volunteer Income Tax Assistance (VITA) program. These programs help eligible individuals prepare and file their taxes at no cost, making tax preparation more accessible.

🔎 Choosing the Right Tax Service

  • 📊 Look at Trustpilot ratings to gauge overall customer satisfaction.
  • 💼 Consider the range of services offered to meet your specific tax needs.
  • 🏢 Check for the availability of in-person consultations if preferred.
  • ⚡ Review any reported issues or caveats that could impact your experience.
  • 🔄 Keep in mind that ratings can change over time, reflecting new customer experiences.

❓ Frequently Asked Questions

❓ What is a Pass-Through Entity Tax?

A Pass-Through Entity Tax (PTET) is a tax that some states impose on certain business entities. This tax allows owners to pay state taxes at the entity level instead of the individual level, potentially simplifying tax obligations.

💵 How do I trace my unreceived tax refund?

To trace an unreceived tax refund, you should complete Form 3911. This form allows you to request a trace from the IRS to locate your refund.

📅 What are the deadlines for filing tax forms?

Deadlines vary depending on the form being filed. For example, Form 1065 is generally due on the 15th day of the third month after the end of the partnership's tax year.

🏢 Where can I find free tax assistance?

Free tax assistance can be found through programs like IRS Free File and the Volunteer Income Tax Assistance (VITA) program. These programs provide resources to help individuals prepare their taxes at no cost.

🔄 What should I do if I need an extension for filing my taxes?

If you need an extension, you should file Form 8716 by the due date of the return for which you are requesting the extension. This allows you additional time to prepare your tax return.

📈 How can I stay updated on tax law changes?

To stay updated on tax law changes, regularly check the IRS website and your state's tax agency website. These resources provide the latest information on tax regulations and procedures.

⚖️ Recent Court Cases in Arkansas Taxation

Recent court rulings have clarified various aspects of tax law relevant to Arkansas taxpayers. These decisions can influence how tax laws are interpreted and applied in the state.

For more recent rulings, feel free to browse more rulings on the news page.

End of October 2026 Update





FULL List to Arkansas Tax Forms


Individual Income Tax Forms


Form AR1000CR Individual Income Tax Composite Return Form AR1000F Individual Income Tax Return Form AR1000NR Individual Income Tax Return Non Resident Form AR1000S Individual Income Tax Return Resident Short Form

Corporate Income Tax Forms


Form AR1100CT Corporation Income Tax Return Form AR1100CTX Amended Corporation Income Tax Return

Sales Tax Forms


Exemption Form Form Arkansas Consumer Use Tax Return

Primary Concerns:


The most significant recent issues that have effected taxation in Arkansas has been centered heavily on increasing unemployment taxes that many businesses now pay, due to the increasing amounts of state residents seeking unemployment benefits.

Arkansas’s taxation also has an interesting history in trying to regulate both alcohol and cigarette use by demanding fairly high tax rates on both forms of product.

Income Taxes:


All residents of Arkansas or non-residents who draw income from businesses, employment, trusts, or properties located within the state are required to pay Arkansas income tax on their income.

Those with taxable income of $3,700 or less pay a 1% income rate.  The rate for incomes between $11,100 and $18,600 is 4.5%, while between $18,600 and $31,000 the rate is 6%.

Instead of having recognizing returns that are classified as being single, filing jointly or head of household, Arkansas offers tax credits for these classifications.

Corporate Income Taxes:


All businesses and corporations that either reside in Arkansas or do business in state are subject to Arkansas income taxes.  This can seem somewhat complicated, but becomes clearer when explained.

The first $3,000 of corporate income have a tax rate of 1%.  What this means is, if an Arkansas business earned $6000 in income for a year, the entire $6000 will NOT be taxed as 2%, only the second $3000.

From there the next $5000 earned will be 3%, the next $14,000 will be at 5%, the next $75,000 will be at 6%, and any income over $100,000 will be taxed at 6.5%.  Everything $100,000 and under will be prorated at the lower rate (All of the previous brackets add up to $100,000: $3,000 + $3,000 + $5,000 + $14,000 + $75,000 = $100,000).

Corporations with a sustainable net operating loss may carry it forward for five years as a deduction.

Property Taxes:


Property taxes in Arkansas are generally operated on a county by county basis. The state does not set or collect property taxes; taxes are set and collected by the county of residence (and Arkansas has 75 counties).  In general, Arkansas counties usually tax most property no matter the purpose or use.

This includes vehicles, which are taxed at their assessed value, which is usually 20 percent of market value multiplied by the mileage rate (which varies from county to county).

Sales Taxes:


The standard Arkansas state sales tax is 6%, and it is fairly standard across the state on most saleable items.  Many municipalities add additional sales taxes on top of these rates; the city of Little Rock adds an additional half percent to its sales tax.

Because of its history as a “dry” state, meaning that many counties have historically placed restrictions on alcohol sales (with many counties still doing so), the state has a comprehensive listing of various tax rates on alcohol beverage purchases, with beer commanding a 1% sales tax, while mixed drinks boast a whopping 10% sales tax.

The state of Arkansas, like any other state in the United States, needs to generate revenue to fund different programs and services that are essential for the well-being of the community. Also, the state needs to maintain its infrastructure and provide support for the less fortunate. One way to achieve this is through taxes. Arkansas tax system comprises of different taxes imposed on its residents, including income tax, sales tax, property tax, and other taxes. In this article, we will explore each of Arkansas's major taxes, how they affect the residents, and the recent changes in the laws governing them.

Overview of Arkansas Tax

Arkansas tax system comprises of state and local taxes that generate revenue for the state's general fund and the city or country's coffers. The state's general fund is responsible for providing funds for different programs and services, including education, healthcare, public safety, and other essential services. Local taxes, on the other hand, are collected by the cities and counties to fund their budgets and provide programs and services to their residents.

Arkansas has a three-bracket progressive tax rate that ranges from 0.9% to 6.6%. The state's general sales tax is 6.5%, with local jurisdictions able to add up to an additional 5.125% tax. Arkansas property taxes are relatively low compared to other states, with the average effective property tax rate standing at 0.63%, making it the fourth-lowest in the country.

Arkansas's major tax sources include income tax, sales tax, property tax, and other taxes like excise taxes, fuel taxes, and cigarette taxes.

Arkansas Income Tax

Arkansas income tax is a progressive tax system that ranges from 0.9% to 6.6%, depending on an individual's income. The state has three tax brackets, with the first bracket taxed at 0.9%, the second bracket taxed at 2.4%, and the third bracket taxed at 6.6%. The tax brackets are adjusted annually for inflation.

Arkansas income tax applies to all forms of income, including salaries, wages, tips, dividends, interest, capital gains, and other forms of income. The state's income tax is an essential source of revenue for the state's general fund, generating approximately $4.2 billion in 2019.

📝 See Also

Arkansas Sales Tax

Arkansas sales tax is one of the primary sources of revenue for the state and local jurisdictions. The state's general sales tax is 6.5%, with local jurisdictions able to add up to an additional 5.125% tax, bringing the total sales tax to 11.625%. The average sales tax rate in Arkansas is 9.34%, making it the second-highest in the country.

Like other states, Arkansas exempts certain items from sales tax, including groceries, prescription medicine, and some agricultural inputs. The state also provides a sales tax exemption for manufacturing and industries to encourage investment and job creation in the state.

Arkansas Property Tax

Arkansas property taxes are relatively low compared to other states, with the average effective property tax rate standing at 0.63%, making it the fourth-lowest in the country. Property taxes in Arkansas are levied by local governments, including cities, counties, and school districts. The tax rate varies depending on the local jurisdiction and the value of the property.

Arkansas property tax revenue is an essential source of funding for local governments, generating approximately $1.5 billion in 2019. The revenue is used to fund various local programs and services, including education, public safety, infrastructure, and other essential services.

Other Taxes

Apart from income tax, sales tax, and property tax, Arkansas imposes other taxes on its residents, including fuel tax, cigarette tax, and excise tax. The state imposes a fuel tax of $0.24 per gallon of gas and $0.28 per gallon of diesel. Arkansas cigarette tax is $1.15 per pack of 20 cigarettes, making it the fourth-lowest in the country. The state also imposes excise taxes on different goods and services, including alcohol, gaming, and insurance premiums.

Recent Changes in Arkansas Tax Laws

Like any other state, Arkansas tax laws are subject to change, depending on the state's financial situation and the needs of the residents. In recent years, Arkansas has made some significant changes in its tax laws, affecting how residents are taxed and the amount of revenue the state generates. Below is a summary of the recent changes in Arkansas tax laws.

Income Tax Cuts

In 2019, Arkansas Governor Asa Hutchinson signed a bill that reduced the state's individual income tax rates. The bill reduces the tax rates for the first two tax brackets, with the first bracket now taxed at 0.9%, down from 2%. The second bracket is now taxed at 2.4%, down from 4%. The reductions in tax rates are expected to save taxpayers approximately $97 million annually.

Sales Tax on Online Purchases

In 2019, Arkansas Governor Asa Hutchinson signed a bill that requires online retailers to collect sales tax on purchases made by Arkansas residents. The bill was intended to level the playing field between online retailers and local businesses that were subject to sales tax. The bill is expected to generate approximately $35 million in revenue annually.

Property Tax Exemption for Disabled Veterans

In 2019, Arkansas Governor Asa Hutchinson signed a bill that provides a property tax exemption to disabled veterans and their surviving spouses. The bill waives property taxes for veterans who are 100% disabled due to a service-connected disability. The exemption applies to the veteran's primary residence and is expected to cost the state approximately $1 million annually.

Fuel Tax Increase

In 2019, Arkansas Governor Asa Hutchinson signed a bill that increased the state's fuel tax by $0.03 per gallon of gas and $0.06 per gallon of diesel. The tax increase was intended to generate revenue for the state's highways and transportation infrastructure. The tax increase is expected to generate approximately $95 million annually.

Conclusion

In conclusion, Arkansas tax system comprises of different taxes that generate revenue for the state and local jurisdictions. The state's major tax sources include income tax, sales tax, property tax, and other taxes like excise taxes, fuel taxes, and cigarette taxes. In recent years, the state has made some significant changes in its tax laws, affecting how residents are taxed and the amount of revenue the state generates. The changes include income tax cuts, sales tax on online purchases, property tax exemption for disabled veterans, and fuel tax increase. The changes are expected to make the state's tax system fairer, generate more revenue for the state, and provide relief to the less fortunate.