Capital Gains Tax for Arkansas (2026)
Arkansas (AR) Key Facts
State Capital Gains Rate
3.9%
Taxed As
Ordinary income
Federal Rate Applies
Yes (0%, 15%, or 20%)
Long Term vs Short Term
Both taxed at state level
How This Calculator Works in Arkansas
This calculator estimates your combined federal and Arkansas capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
Arkansas Overview
Arkansas taxes capital gains as ordinary income at up to 4.4%. Federal capital gains taxes also apply, with long-term rates of 0%, 15%, or 20% depending on income. The combined state and federal burden should be considered when planning asset sales or investment strategies.
How Arkansas Compares
Arkansas's capital gains rate of 3.9% compares to Missouri at 4.8% and Tennessee at 0%. State capital gains taxes significantly impact net investment returns.
| State | Top Rate | Notes |
|---|---|---|
| Missouri | 4.8% | Missouri has a capital gains rate of 4.8%. |
| Tennessee | 0% | Tennessee has a capital gains rate of 0%. |
| Texas | 0% | Texas has a capital gains rate of 0%. |
Arkansas's capital gains rate of 3.9% compares to a national average of approximately 5.04%. This is below the national average.
Tips for Arkansas Residents
- 1Arkansas taxes capital gains as ordinary income at up to 4.4%.
- 2Federal long-term gains (held 1+ year) are taxed at 0%, 15%, or 20%. Arkansas's state tax applies on top of the federal rate.
- 3Hold investments over one year to qualify for lower federal long-term rates rather than ordinary income rates.
- 4Tax-loss harvesting—selling losing investments to offset gains—reduces both federal and Arkansas state capital gains tax.
- 5Consider the combined federal + state rate when planning large asset sales. The total can exceed 28.2% for high earners.