Arkansas Capital Gains Tax: 2026 Rules and Calculator
Arkansas taxes only half of a long-term gain, and gain above $10,000,000 is not taxed by Arkansas at all. Here is what a Arkansas seller pays in 2026, layer by layer, and a calculator for your own sale.
Short answer: Arkansas excludes 50% of net long term capital gain and taxes the rest at up to 3.7% for 2026 (3.9% for 2025); net capital gain above $10,000,000 from a single sale is fully exempt. On top of that comes federal capital gains tax (0%, 15% or 20% for 2026 under IRS Rev. Proc. 2025-32, and up to 25% on building depreciation) and the 3.8% net investment income tax above $250,000 of income for married couples or $200,000 single (IRC 1411).
Arkansas capital gains tax calculator
Enter your sale: rental property, your home, land, a business, stock or collectibles. You get the 2026 tax in Arkansas (federal, the 3.8% tax and Arkansas tax) and the same sale spread over the years the buyer pays you. It runs in your browser on the same engine as our capital gains tax calculator.
You keep $9,294,653 after selling costs and tax. The tax is 21.8% of your gain.
Your gain
- Sale price less selling costs$11,640,000
- Less your basis$900,000
- Your taxable gain$10,740,000
- Long-term gain at 0%, 15% or 20%$10,740,000
The tax, line by line
- Federal income tax (incl. $29,642 AMT)$2,160,347
- Net investment income tax (3.8%)$0
- Arkansas tax$185,000
- Total tax$2,345,347
- You keep$9,294,653
Get the REAL numbers
Talk to capital gains expert Hans Goldstein, EA.
These are estimates. Have a qualified tax professional run your real numbers in a 15-minute scope call.
Why now: the closing date and how the buyer pays you are set before closing, and they decide how much Arkansas and federal tax this sale costs.
Book my 15-minute callThis is an estimate. Getting it right down to the tee takes your actual tax forms (returns, K-1s, depreciation schedules), a consult and a paid analysis. The first 15-minute scope call is free.
How Arkansas taxes capital gains in 2026
Arkansas excludes 50% of net long term capital gain and taxes the rest at up to 3.7% for 2026 (3.9% for 2025); net capital gain above $10,000,000 from a single sale is fully exempt.
- 50% of net long term capital gain is excluded, and gain over $10,000,000 is exempt (Arkansas Code 26-51-815).
- The top rate is 3.7% for tax year 2026 and 3.9% for 2025 (Arkansas Code 26-51-201).
Selling Arkansas property while living elsewhere: Arkansas taxes a nonresident on gain from real estate and other property located in Arkansas, so selling Arkansas property from another state still means a Arkansas return.
Worked example (computed October 13, 2026)
A business sale above $10,000,000, where the Arkansas exemption caps the state tax. A married couple filing jointly in Arkansas sells a business they work in for $12,000,000 with $360,000 of selling costs. Basis is $900,000, and other income is $300,000.
- Taxable gain: $10,740,000.
- All in one year (2026): $2,160,347 federal income tax, $0 net investment income tax and $185,000 Arkansas tax (1.7% of the gain): $2,345,347 in total, 21.8% of the gain.
- This example is priced all in one year. A note over $5,000,000 would owe the Section 453A interest charge every year it is outstanding; set the years above 1 in the calculator to compare a sale paid over time.
What the calculator simplifies
It applies the rule above to the whole gain for one sale in 2026. It also leaves out local taxes unless named above, the alternative minimum tax effect of note interest, and equipment recapture on a business sale. Federal tables for later years carry the 2026 tables forward.
Spreading a Arkansas sale over several years
On an installment sale the gain is reported as the buyer pays you (IRC 453), so each year's slice can stay in lower federal brackets and under the 3.8% threshold. Building depreciation is reported first (Treas. Reg. 1.453-12), equipment recapture is taxed in the year of sale (IRC 453(i)), and notes over $5,000,000 owe the Section 453A interest charge. More on how it works: what a structured installment sale is.
Sources
- Arkansas DFA, individual income tax (tax years 2025 and 2026)
- IRS Rev. Proc. 2025-32: 2026 federal brackets.
- IRC 1(h) and IRC 1411: capital gain rates and the 3.8% tax (as in force October 2026).
What is the tax bill on your Arkansas sale going to be?
Send me the sale price and rough basis. Within one business day I'll email you the actual number and the Seller's Guide to §453. If it doesn't fit your deal, I'll tell you that plainly.
No retainer · no obligation. Hans Goldstein, a licensed insurance agent (CA Insurance License #4273294), will contact you and may discuss insurance products, including annuities.
Frequently asked
What is the capital gains tax rate in Arkansas for 2026?
Arkansas excludes 50% of net long term capital gain and taxes the rest at up to 3.7% for 2026 (3.9% for 2025); net capital gain above $10,000,000 from a single sale is fully exempt. Federal capital gains tax and the 3.8% net investment income tax come on top.
How much tax on a $12,000,000 sale in Arkansas?
In the example on this page, a married couple filing jointly selling a business they work in for $12,000,000 with a $10,740,000 taxable gain owes $2,345,347 in 2026: $2,160,347 federal, $0 net investment income tax and $185,000 Arkansas tax.
Do nonresidents pay Arkansas tax when they sell property there?
Arkansas taxes a nonresident on gain from real estate and other property located in Arkansas, so selling Arkansas property from another state still means a Arkansas return.
Does Arkansas have a capital gains deduction or special rule?
50% of net long term capital gain is excluded, and gain over $10,000,000 is exempt (Arkansas Code 26-51-815) The top rate is 3.7% for tax year 2026 and 3.9% for 2025 (Arkansas Code 26-51-201)