Arkansas Capital Gains Tax Calculator
Arkansas taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the Arkansas income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the Arkansas state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced Arkansas Department of Finance and Administration brackets for tax year 2024, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the Arkansas state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the Arkansas Department of Finance and Administration so you can confirm any special rule that applies to you.
Arkansas taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $780.00 in Arkansas state tax, an effective rate on the gain of 3.90%.
How Arkansas taxes capital gains
Arkansas taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the Arkansas bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
Arkansas capital gains tax: frequently asked questions
How are capital gains taxed in Arkansas?
Arkansas taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the Arkansas income tax brackets published by the Arkansas Department of Finance and Administration. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the Arkansas Department of Finance and Administration.
How much state tax will I pay on a $20,000.00 capital gain in Arkansas?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $780.00 of Arkansas state income tax for a single filer, an effective rate on the gain of 3.90%. Your figure depends on your total income and filing status; enter them above.
Does Arkansas have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the Arkansas Department of Finance and Administration; this calculator uses the ordinary income method and links the source.
What is the current top Arkansas income tax rate?
For tax year 2024 the top Arkansas income tax rate is 3.9%, applying to net income above $24,999. This rate took effect following Act 1 of the 2024 Regular Session, which reduced the top rate from 4.7% to 3.9%.
How has Arkansas reduced its income tax rate in recent years?
Arkansas has cut its top individual income tax rate several times in quick succession. The rate was 5.9% before 2021 reforms began. Act 5 of the 2023 Special Session lowered it to 4.7%, and Act 1 of the 2024 Regular Session cut it further to 3.9%, effective for tax year 2024.
How does the Arkansas standard deduction work?
Arkansas uses a percentage-based standard deduction rather than a fixed dollar amount. Filers may deduct 10% of net income, up to a cap of $2,270 for single filers and $4,540 for married couples filing jointly. The cap is set by the Arkansas Department of Finance and Administration and differs from the federal standard deduction.
Does Arkansas have a low-income tax credit?
Yes. Arkansas provides a low-income tax credit for taxpayers whose net income falls within the lowest bracket. The credit is designed to phase in the tax liability gradually so that filers at the bottom of the income scale owe little or no state income tax. Specific credit amounts are published each year in the Arkansas individual income tax instructions available from the Department of Finance and Administration.
Official sources
- Arkansas income tax rates applied to capital gains (tax year 2024): Arkansas Department of Finance and Administration, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Arkansas Department of Finance and Administration.