Arkansas Capital Gains Tax Calculator
Calculate your 2026 capital gains tax in Arkansas. Arkansas taxes capital gains at rates up to 3.7%, plus federal taxes.
Original purchase price
Renovations, additions — added to your basis
Agent commissions, closing costs, title & transfer fees
Total Tax
$37,500
18.8% effective rate
Capital Gain
$200,000
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Tax Breakdown
Sale price minus selling costs and all taxes (before any mortgage payoff).
Federal
$33,800
AR State
$3,700
Effective Rate
18.8%
Arkansas Capital Gains Tax
Arkansas taxes capital gains as ordinary income at rates up to 3.7% for 2026, cut from 3.9% by Act 2 of 2026 and retroactive to January 1. Only 50% of net long-term capital gain is taxed, and net capital gain above $10 million is fully exempt; short-term gains are fully taxed. This calculator applies the 3.7% top rate to the taxable half of a long-term gain (1.85% effective), so it overstates the tax for most filers and does not apply the $10 million exemption.
Long-term: Taxed as ordinary income (up to 3.7%) on 50% of the gain (1.85% effective); gain above $10 million exempt
Short-term: Taxed as ordinary income (up to 3.7%)
NIIT Applied
The 3.8% Net Investment Income Tax applies because your income exceeds $200,000.
Arkansas 50% long-term gain subtraction applied
Arkansas exempts 50% of net capital gain (Ark. Code § 26-51-815). Net capital gain above $10 million is fully exempt, which this calculator does not apply.
Arkansas Capital Gains Tax Details
Tax Treatment
Tax Type
Taxed as ordinary income
Maximum Rate
3.7%
Available Exemptions
- Federal home-sale exclusion ($250K single / $500K married filing jointly) applies on the Arkansas return
- 50% of net capital gain is exempt (Ark. Code § 26-51-815)
- Net capital gain above $10 million is fully exempt (not applied here)
- Selling costs and capital improvements reduce the taxable gain
Arkansas Capital Gains Tax FAQ
Official References
- IRS Topic 409: Capital Gains and Losses
Federal capital gains tax guidance
- IRS Publication 523: Selling Your Home
$250K / $500K home-sale exclusion, basis adjustments, and selling expenses
- Arkansas DFA — AR1000D Capital Gains and Losses
Arkansas state capital gains rules
This calculator provides estimates. Consult a tax professional for advice specific to your situation in Arkansas.
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