State tax docs / States / Arkansas

Arkansas state income tax: engine rules, 2026

How the QuantCalc engine computes Arkansas tax for tax year 2026, rule by rule, with the official source for each rule. Verification status: Worksheet-tested (what this means).

On this page: How the tax is computed · Rate schedule · Deductions, exemptions and credits · Age 65+ subtractions and credits · Social Security · IRA, 401(k) and private pensions · Public pensions · Military retirement pay · Roth conversions · Capital gains · Blindness and disability · Part-year and nonresident returns · Worked examples · After 2026 · Not calculated · Verification. Machine-readable: this state's entry in the engine config and the provenance file (key AR).

How the tax is computed

Every step the engine takes for Arkansas, in the order it takes them. Steps marked with a filing status or household type apply only there. Each step links the section below that carries Arkansas's figures and the official sources for it; the calculation order page describes every step for all jurisdictions.

What each filing status gets, read back from the engine for a household with $1 of income (so below every phase-out and income test):

	Single	Married filing jointly	Married filing separately	Head of household
Rate schedule used	single schedule	joint schedule	single schedule	single schedule
Top rate	3.7% from $26,400	3.7% from $26,400	3.7% from $26,400	3.7% from $26,400
Standard deduction, under 65	$2,470	$4,940	$2,470	$2,470
Standard deduction at 70 (joint: both 70)	$2,470	$4,940	$2,470	$2,470
Personal exemption	none	none	none	none
Age subtractions at 70 (joint: both 70)	none	none	none	none

Per-person mode joint returns with the spouse's age given On a joint return with the spouse's age given, every age test the state applies per taxpayer is evaluated for each spouse at their own age. Without it one household age applies to both.
engine step (compute_state_tax_detail). Engine convention, no external source: The engine cannot know the second spouse's age unless told.
Blindness and disability, per person only when the caller says a person is blind or disabled The filer is person one; the spouse counts only on a joint return and only when the caller says so (there is no household convention as for age). Where a state lets a disabled person (and, where it says so, a blind one, or one whose spouse is disabled) qualify for its general retirement exclusion before the age, that person is treated as having reached the age for that exclusion only. Of the 42 taxing jurisdictions, these have a blind amount: Arizona, Arkansas, California, Colorado, Delaware, the District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Dakota, Oklahoma, Oregon, Utah, Vermont and Virginia; these have none: Alabama, Connecticut, Georgia, Louisiana, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, West Virginia and Wisconsin. A disability route is calculated in Arkansas, the District of Columbia, Georgia, Hawaii, Idaho, Iowa, Maryland, Michigan, New Jersey, Oregon and West Virginia.
engine step (compute_state_tax_detail). Engine convention, no external source: Who is blind or disabled is the caller's statement; the engine has no household convention for it.
Rate schedule and standard deduction by filing status Single uses the single schedule and deduction; married filing jointly the joint ones. Head of household and married filing separately follow the two steps below.
Arkansas's values · engine step (select_brackets). Sources (Rate schedule): Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); Tax Cuts Passed in Special Session (8 May 2026) (checked 2026-10-12); Act 1 of the 2026 First Extraordinary Session (HB 1001), amending A.C.A. 26-51-201(a)(4) (archived copy of the arkleg.state.ar.us text) (checked 2026-09-28)
Married filing separately Where the state publishes its own separate schedule, that one (with half the joint deduction unless a separate deduction is set). Where one schedule applies to every status, that schedule unscaled with the single deduction. Otherwise the joint schedule with every threshold and the deduction halved (computed as the joint tax on twice the income, halved).
Arkansas's values · engine step (select_brackets). Sources (Rate schedule): Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); Tax Cuts Passed in Special Session (8 May 2026) (checked 2026-10-12); Act 1 of the 2026 First Extraordinary Session (HB 1001), amending A.C.A. 26-51-201(a)(4) (archived copy of the arkleg.state.ar.us text) (checked 2026-09-28)
Head of household The state's head-of-household schedule where it has one, else the single schedule; the head-of-household deduction where set, else the single deduction.
Arkansas's values · engine step (select_brackets). Sources (Rate schedule): Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); Tax Cuts Passed in Special Session (8 May 2026) (checked 2026-10-12); Act 1 of the 2026 First Extraordinary Session (HB 1001), amending A.C.A. 26-51-201(a)(4) (archived copy of the arkleg.state.ar.us text) (checked 2026-09-28)
The income total every income test uses Other ordinary income + retirement distributions (before any exclusion) + conversion + federally taxable Social Security + long-term gains + Railroad Retirement Tier 2. It stands in for federal adjusted gross income in every threshold, cliff and phase-out below; state subtractions do not reduce it.
engine step (compute_state_tax_detail). Engine convention, no external source: The inputs are the federal AGI components, so their sum is federal AGI for these income types.
Attributing income to each spouse joint returns with each spouse's own amounts given With a caller's split (the API's spouse object), each spouse's own distributions (employer-plan money included), pension, public pension, conversion, wages and military pay; spouse 2's shares are clamped into the household totals and spouse 1 gets the rest. Without a split, in per-person mode, every item is divided 50/50. Social Security is divided by each spouse's own gross benefits where the caller gives spouse.socialSecurityGross, else 50/50; other ordinary income and gains are always divided 50/50 where a rule needs a per-person amount. The split is used only where a state's rule is per taxpayer; household totals stay authoritative for the base and the income tests.
engine step (compute_state_tax_detail). Engine convention, no external source: Equal attribution is the neutral split when the owner of a dollar is not known.
Early IRA distributions The IRA and employer-plan dollars each person took before 59½: the amount the caller gave, else every such dollar of a person under 59 at the end of the year (none of an older person, or when the age is not given). Where the state keeps its retirement break only for some federal early-withdrawal exceptions, the other early dollars leave the retirement pool and are taxed as ordinary income; the exception is the caller's, else death for a survivor's benefits, disability for a disabled person, else none. Where the state taxes only the part over the IRA basis, the part within it is left out altogether. A kept exception passes the state's IRA age gate. The additional state tax on the early dollars with no exception is added before the credits, or after them where the state says so (next steps).
Arkansas's values · engine step (compute_state_tax_detail). Sources (IRA, 401(k) and private pensions): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000F_and_AR1000NR_Instructions.pdf (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12)
Keeping the per-spouse shares inside the household joint returns with each spouse's own amounts given After the public-pension and employer-pension carve-outs, if the two spouses' remaining shares add up to more than the household's exclusion-eligible distributions (an inconsistent split), spouse 1's share is reduced so they do not.
engine step (compute_state_tax_detail). Engine convention, no external source: Input normalisation.
Military retirement pay The state's military rule runs first, on military pay alone, per taxpayer: each spouse's own pay at their own age when attributed, otherwise half each at the household age on a joint return. Exempt dollars leave the base; the rest become pension dollars for the general retirement rules. Where the state lets a disabled retiree qualify at any age, a disabled person is treated as having reached the rule's age.
Arkansas's values · engine step (compute_state_tax_detail). Sources (Military retirement pay): 2025 AR1000F and AR1000NR Instructions (checked 2026-09-27); Whats new (checked 2026-10-12)
One taxpayer's military exemption Exempt: all of it (below the age split, up to the younger cap). Capped: up to the cap for the age tier, plus the earned-income bonus below the age split when the taxpayer's own wages exceed the threshold, less the taxpayer's own Social Security where the rule says so. Percentage: the percentage (below the age split, up to the younger cap). Then the income limit: above it the exemption is lost, or phased out over the range where one is set.
Arkansas's values · engine step (military_exempt_one). Sources (Military retirement pay): 2025 AR1000F and AR1000NR Instructions (checked 2026-09-27); Whats new (checked 2026-10-12)
Military exclusion reduces other caps Where the statute says so, the military amount a taxpayer excluded reduces that taxpayer's general retirement-exclusion cap, their age-65 subtraction, or both. A survivor's military pay (a surviving-spouse military deduction) reduces neither, where the state says so.
Arkansas's values · engine step (compute_state_tax_detail). Sources (Military retirement pay): 2025 AR1000F and AR1000NR Instructions (checked 2026-09-27); Whats new (checked 2026-10-12)
Capital-loss deduction off the base The deduction comes off the other ordinary income (negative income, as Form 1040 line 7a is), so the base and every state-AGI figure summed from it carry it; WI no more than Wisconsin ordinary income (Schedule WD line 28(c)). States whose base is federal taxable income (with the caller's figure) already have it there and take it only once. Engine 1.13.1: the allowed rental loss comes off the same way, on its own line (rental_loss_deduction).
Arkansas's values · engine step (compute_state_tax_detail). Sources (Capital gains): AR1000D 2025 - Arkansas Capital Gains and Losses (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12)
Social Security exempt None of the federally taxable benefit enters the base.
Arkansas's values · engine step (ss_amount_in_state_base). Sources (Social Security): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12)
Retirement exclusion per spouse (both ages known) joint returns with the spouse's age given Full-exclusion states exclude each qualifying spouse's own dollars. Capped states give each spouse the single cap for their own age against their own eligible dollars (pension dollars only where the exclusion is pension-only; employer dollars only below the IRA age), less their military exclusion and their own Social Security offset (by the spouse's stated gross benefits, else half). Per-return states (and the pooled-if-both-qualify rule when both qualify) apply the joint cap to the couple's pooled eligible dollars when either spouse qualifies. The income tests then apply once to the summed deduction.
Arkansas's values · engine step (compute_state_tax_detail). Sources (IRA, 401(k) and private pensions): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000F_and_AR1000NR_Instructions.pdf (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12)
Retirement exclusion (household) The distributions eligible for the exclusion go through the exclusion below. Taxable public-pension dollars left by a cap are not eligible; below the IRA age only employer-plan dollars are.
Arkansas's values · engine step (compute_state_tax_detail). Sources (IRA, 401(k) and private pensions): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000F_and_AR1000NR_Instructions.pdf (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12)
Retirement exclusion per spouse (declared split) joint returns with each spouse's own amounts given With a spouse split in a per-taxpayer state, each spouse's own eligible dollars draw that spouse's single cap (less their military exclusion); an income limit then applies once to the sum.
Arkansas's values · engine step (compute_state_tax_detail). Sources (IRA, 401(k) and private pensions): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000F_and_AR1000NR_Instructions.pdf (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12)
Conversion taxed or exempt In full-exclusion states a conversion is exempt at the qualifying age (at any age where the state says so). Elsewhere, unless pooled above, it is ordinary income taxed in full.
Arkansas's values · engine step (compute_state_tax_detail). Sources (Roth conversions): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12)
Cap by age tier The full cap at or above the exclusion age, the lower cap at or above the partial age, otherwise none. Joint returns use the joint cap; every other status the single cap.
Arkansas's values · engine step (retirement_distributions_in_state_base). Sources (IRA, 401(k) and private pensions): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000F_and_AR1000NR_Instructions.pdf (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12)
The capped deduction Deduction = the smaller of the eligible distributions and the cap, then reduced by the income limit above; the rest of the distributions stays in the base.
Arkansas's values · engine step (retirement_distributions_in_state_base). Sources (IRA, 401(k) and private pensions): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000F_and_AR1000NR_Instructions.pdf (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12)
One taxpayer's cap joint returns with the spouse's age given For per-spouse calculations, each spouse's cap is the single-column cap for their age tier.
Arkansas's values · engine step (per_taxpayer_cap_single). Sources (IRA, 401(k) and private pensions): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000F_and_AR1000NR_Instructions.pdf (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12)
Low Income Tax Table lookup The 2025 Arkansas Low Income Tax Tables for one or no dependents (single, head of household, joint), on AGI rounded to the dollar; code constants, not scaled for later years.
Arkansas's values · engine step (ar_low_income_table_tax). Sources (Deductions, exemptions and credits): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column (checked 2026-10-12)
Low Income Tax Table, two or more dependents only when the caller lists dependents The head-of-household and joint tables for two or more dependents (2025 tables), on AGI rounded to the dollar; code constants, not scaled for later years.
Arkansas's values · engine step (ar_low_income_table_tax_2plus). Sources (Deductions, exemptions and credits): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column (checked 2026-10-12)
Qualified-individual credit table The full credit up to a net-taxable-income limit, a fixed step less for each hundred-dollar row above it, none past the last row (the 2025 table; code constants, not scaled for later years).
Arkansas's values · engine step (ar_qualified_credit_one). Sources (Deductions, exemptions and credits): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column (checked 2026-10-12)
High-income table Above the threshold the whole net income is taxed at the low rate on a first band and the top rate above it, less a bracket adjustment that falls by a fixed step for each band (or part) of income over the threshold and ends at zero.
Arkansas's values · engine step (high_income_table_tax). Sources (Rate schedule): Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); Tax Cuts Passed in Special Session (8 May 2026) (checked 2026-10-12); Act 1 of the 2026 First Extraordinary Session (HB 1001), amending A.C.A. 26-51-201(a)(4) (archived copy of the arkleg.state.ar.us text) (checked 2026-09-28)
Long-term gains in the base Where gains are taxed as ordinary income: net long-term gain less the flat exclusion (never below zero), times the inclusion share. Elsewhere none enters.
Arkansas's values · engine step (compute_state_tax_detail). Sources (Capital gains): AR1000D 2025 - Arkansas Capital Gains and Losses (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12)
Capital gain cap Net capital gain above the cap is exempt; the partial inclusion applies to the gain up to it (once per return: the gain is not attributed to a spouse).
Arkansas's values · engine step (compute_state_tax_detail). Sources (Capital gains): AR1000D 2025 - Arkansas Capital Gains and Losses (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12)
State taxable income Other ordinary income + Social Security, retirement income, conversion and gains left in the base − standard deduction − personal exemption − age subtractions.
engine step (compute_state_tax_detail). Engine convention, no external source: The order of subtraction follows the state forms; each amount is sourced at its own step.
No tax at or below zero State taxable income at or below zero returns a tax of 0 (credits are not refundable), unless the state has a tax computed apart from taxable income that still applies (next step).
engine step (compute_state_tax_detail). Engine convention, no external source: Every credit the engine carries is nonrefundable, so nothing below can make a zero tax negative; each credit is sourced at its own step.
Separate-return scaling married filing separately For the halved-joint rule, taxable income is doubled before the schedule and the result halved.
Arkansas's values · engine step (compute_state_tax_detail). Sources (Rate schedule): Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); Tax Cuts Passed in Special Session (8 May 2026) (checked 2026-10-12); Act 1 of the 2026 First Extraordinary Session (HB 1001), amending A.C.A. 26-51-201(a)(4) (archived copy of the arkleg.state.ar.us text) (checked 2026-09-28)
The rate schedule Each bracket's rate on the part of taxable income inside it, summed. No rounding: the result is carried in full precision.
Arkansas's values · engine step (apply_state_brackets). Sources (Rate schedule): Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); Tax Cuts Passed in Special Session (8 May 2026) (checked 2026-10-12); Act 1 of the 2026 First Extraordinary Session (HB 1001), amending A.C.A. 26-51-201(a)(4) (archived copy of the arkleg.state.ar.us text) (checked 2026-09-28)
High-income table in place of the schedule Above the threshold the rate schedule's result is replaced by the high-income table's (see its step).
Arkansas's values · engine step (compute_state_tax_detail). Sources (Rate schedule): Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); Tax Cuts Passed in Special Session (8 May 2026) (checked 2026-10-12); Act 1 of the 2026 First Extraordinary Session (HB 1001), amending A.C.A. 26-51-201(a)(4) (archived copy of the arkleg.state.ar.us text) (checked 2026-09-28)
Additional tax on early distributions The state's share of the federal additional tax on early distributions (the rate on each early dollar with no exception): added before the credits (Arkansas, Nebraska, Vermont), or after them in California and Wisconsin (see the step after the credits).
Arkansas's values · engine step (compute_state_tax_detail). Sources (IRA, 401(k) and private pensions): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000F_and_AR1000NR_Instructions.pdf (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12)
Per-exemption credit The credit per exemption: two on a joint return, one otherwise, or the state's own count for a head of household. Where the state sets an income limit there is no credit above it (the joint limit for joint returns and heads of household).
Arkansas's values · engine step (compute_state_tax_detail). Sources (Deductions, exemptions and credits): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column (checked 2026-10-12)
Credit per dependent only when the caller lists dependents A credit per dependent, under the same income cutoff and phase-out as the personal credits where the state has them (each dependent credit loses the same amount per step, floored as a group).
Arkansas's values · engine step (compute_state_tax_detail). Sources (Deductions, exemptions and credits): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column (checked 2026-10-12)
Senior credit The credit per taxpayer at or above the age: two on a joint return at the household age, one per qualifying spouse in per-person mode. A head of household's extra personal credit is not a second senior credit.
Arkansas's values · engine step (compute_state_tax_detail). Sources (Age 65+ subtractions and credits): 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27)
Extra credit at 65 without a retirement exemption One more credit per taxpayer 65 or older who takes no retirement exclusion: per person in per-person mode; on the household path every 65+ taxpayer gets it only when no retirement exclusion was taken. Whether to forgo an exclusion for it is weighed by the elections step (the lower tax is kept).
Arkansas's values · engine step (compute_state_tax_detail). Sources (Age 65+ subtractions and credits): 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27)
Credit for blindness only when the caller says a person is blind or disabled The credit for each blind person.
Arkansas's values · engine step (compute_state_tax_detail). Sources (Blindness and disability): 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12)
Credit for qualified individuals Arkansas's Additional Tax Credit for Qualified Individuals on net taxable income, doubled on a joint return.
Arkansas's values · engine step (compute_state_tax_detail). Sources (Deductions, exemptions and credits): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column (checked 2026-10-12)
Credits cannot make the tax negative The credits are subtracted and the result floored at zero.
engine step (compute_state_tax_detail). Engine convention, no external source: Every credit the engine carries is nonrefundable; each credit is sourced at its own step.
Arkansas Low Income Tax Tables A single, head-of-household or joint filer whose total income from all sources (Social Security, the whole gain and every exempt dollar) is within the table may give up the military, pension and IRA exemptions: the table's tax on AGI (no standard deduction; the partial gain exclusion kept) plus the early-distribution tax, less the personal and senior credits, the 65 Special for every 65+ taxpayer and the qualified-individual credit on that AGI. The lower of the two results is taken.
Arkansas's values · engine step (compute_state_tax_detail). Sources (Deductions, exemptions and credits): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column (checked 2026-10-12)
Filing status 4 (separate columns on the joint return) joint returns with each spouse's own amounts given On a joint return with each spouse's own amounts, each spouse's column (own wages, retirement and conversion income left in the base and early IRA dollars; half of the joint items; half of every deduction) is taxed on its own schedule, the qualified-individual credit per column and the other credits from the total; the lower of the two results is taken.
Arkansas's values · engine step (compute_state_tax_detail). Sources (Deductions, exemptions and credits): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column (checked 2026-10-12)
Qualifying surviving spouse qualifying surviving spouse returns A qualifying surviving spouse (filingStatus qss) is one person on the return, taxed from the single figures with the state's own treatment of the status laid over them: where the state says so, the joint rate schedule, the joint standard deduction, the joint personal exemption, the joint income limits and phase-outs (only those the state sets for joint returns), the married 65+ and blindness amounts, or the head-of-household return; where the state gives the status nothing of its own, the single return. The federal figures the engine derives for the status are the federal qualifying-surviving-spouse ones (the joint standard deduction, the married 65+ amount).
Arkansas's values · engine step (state_tax_effective_config). Sources (Rate schedule): Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); Tax Cuts Passed in Special Session (8 May 2026) (checked 2026-10-12); Act 1 of the 2026 First Extraordinary Session (HB 1001), amending A.C.A. 26-51-201(a)(4) (archived copy of the arkleg.state.ar.us text) (checked 2026-09-28)
Elections: claim the exclusion or not Where claiming a retirement exclusion costs a credit, the engine computes the return each way and keeps the lower tax (on a tie, the exclusion is claimed). Arkansas: the "65 Special" credit goes only to a 65+ taxpayer who claims no retirement exemption, so each such taxpayer (per person with both ages or a per-taxpayer split, else the return) may forgo the exemption. Wisconsin: the 67+ retirement subtraction forfeits the credits, so on a joint return with the spouse's age and own amounts the return without the subtraction (and with the married couple credit) is weighed against the return with it.
Arkansas's values · engine step (compute_state_tax_detail). Sources (IRA, 401(k) and private pensions): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000F_and_AR1000NR_Instructions.pdf (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12)
Railroad Retirement benefits only when the caller gives Railroad Retirement benefits Railroad Retirement benefits are never taxed by a state (45 U.S.C. §231m). Tier 2 (railroadRetirementTier2) is in the income total the tests use but never in the base. Tier 1 (railroadRetirementTier1) is a part of the gross benefits (socialSecurityGross); its share of the taxable benefits is taken out of the Social Security every state rule sees, so a state that taxes Social Security never reaches it. Where a state's worksheet says so, the benefits reduce a retirement cap or subtraction (ID, IN, MD, ME, MN: both tiers; MI: the taxable railroad benefits); Minnesota's and Utah's Social Security rules test an income without them, Minnesota's, New Jersey's and California's retirement income tests an income without Tier 2; Ohio and Delaware test their own AGI everywhere, which never holds the benefits.
Arkansas's values · engine step (compute_state_tax_detail). Sources (Social Security): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12)
The capital-loss deduction the state allows With a net capital loss (capitalLoss): the smaller of the loss and the state's limit (the federal $3,000 / $1,500 where the state follows the federal return; MA $2,000, and no more than the interest and dividends); AL the loss less the part carried in, unlimited; PA and NJ none. It comes off the income total the income tests use (and the Social Security worksheets' income); the gross-income filing test (LA) reads the total before it. Engine 1.13.1: with a rental loss (rentalNetIncome below 0, the federal Schedule E line 26 amount) the state allows, the whole loss where the state starts from federal AGI or follows the federal schedule, none in PA and NJ (rental_loss_no_offset): it comes off the same income the same way; a rental profit is other ordinary income.
Arkansas's values · engine step (compute_state_tax_detail). Sources (Capital gains): AR1000D 2025 - Arkansas Capital Gains and Losses (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12)
Each spouse's own Social Security joint returns On a joint return, each spouse's own Social Security is the spouse's share of the benefits by spouse.socialSecurityGross when the caller gives it (Tier 1 railroad benefits left out), else half each. It is what the per-spouse rules read: Colorado's per-spouse subtraction, Rhode Island's per-spouse modification, and the Maine, Maryland and other retirement caps reduced by the benefits each spouse received (with each spouse's own railroad benefits where the state counts them).
Arkansas's values · engine step (compute_state_tax_detail). Sources (Social Security): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12)
Taxes that survive a zero taxable income Where the state's forms compute them apart from taxable income, the early-distribution tax, the minimum tax and the capital-gains surcharge still apply when taxable income is zero or less: the return goes on with taxable income 0 (no schedule tax), and only the credits the state allows against them reduce them.
Arkansas's values · engine step (compute_state_tax_detail). Sources (Rate schedule): Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); Tax Cuts Passed in Special Session (8 May 2026) (checked 2026-10-12); Act 1 of the 2026 First Extraordinary Session (HB 1001), amending A.C.A. 26-51-201(a)(4) (archived copy of the arkleg.state.ar.us text) (checked 2026-09-28)
Refundable state credits The credits paid beyond the tax (reported in refundableCredits; netTax = totalTax less them): earned income credits as a share of the federal EIC with each state's own age band (OK on the 2020 federal credit, DC's own childless schedule, the CalEITC table, MN's Working Family Credit), the NYC EIC and school tax credits, and the property-tax, renter, grocery and senior credits of MA, MI, NJ, ID, HI, NM, OK, AZ, NY, RI, WV, ME, DC, MN, MO, WI, IN and MT, each on its own income measure. Engine 1.13.1: a part-year NYC resident's school tax credits (the Table 2 proration chart and the rate-reduction amount on IT-360.1 line 47; IT-203 lines 60 / 60a for a part-year state resident).
Arkansas's values · engine step (state_tax_refundable_credits). Sources (Deductions, exemptions and credits): 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column (checked 2026-10-12)

Rate schedule

Single

Taxable income from	to	Rate
$0	$5,600	0%
$5,600	$11,200	2%
$11,200	$16,000	3%
$16,000	$26,400	3.4%
$26,400	and up	3.7%

Married filing jointly uses the same thresholds as single.

Head of household uses the single schedule.

Married filing separately: one schedule applies to every filing status, so the engine uses it unscaled with the single deduction.

Source review notes (what the sources do not state outright, or what the engine does not carry):

No DFA 2026 withholding formula or tax table showing the post-Act-1 3.7% rate was found; the DFA formula online still shows 3.90%.

Withholding Tax Formula Method, Effective 01/01/2026, Arkansas Department of Finance and Administration. For 2026, Arkansas uses one bracket table for every filing status: 0% up to $5,599, 2% from $5,600, 3% from $11,200, 3.4% from $16,000 and the top rate from $26,400. This formula was issued before Act 1 of 2026 and still shows a 3.9% top rate. Checked 2026-10-12.
Tax Cuts Passed in Special Session (8 May 2026), Arkansas House of Representatives. Act 1 of the 2026 special session (HB 1001; identical SB 1 became Act 2) lowered the top individual income tax rate to 3.7% from 1 January 2026, for net taxable income of $26,400 and above. Checked 2026-10-12.
Act 1 of the 2026 First Extraordinary Session (HB 1001), amending A.C.A. 26-51-201(a)(4) (archived copy of the arkleg.state.ar.us text), Arkansas General Assembly. For tax years from 1 January 2026: net income up to $94,700 on the regular table with a 3.7% top rate; over $94,700 the high-income table (2% on the first $4,700, 3.7% above) less a bracket adjustment of $290 at $94,701-$94,800 falling $10 per $100 row to $10 at $97,501-$97,600 and none from $97,601 (engine 1.8.0). Checked 2026-09-28.

Deductions, exemptions and credits

Standard deduction (or the exemption the engine carries in its place): $2,470 single, $4,940 married filing jointly, and the single amount for head of household.
Nonrefundable credit of $29 per exemption (one for single, two for MFJ, 2 for head of household).

Source review notes (what the sources do not state outright, or what the engine does not carry):

The Low Income Tax Tables and the qualified-individual credit are the 2025 ones (the DFA has not published 2026 amounts).

2025 AR1000F and AR1000NR Instructions, Arkansas Department of Finance and Administration. The Arkansas standard deduction is $2,470 per filer: $2,470 single and $4,940 married filing jointly. Checked 2026-10-12.
Withholding Tax Formula Method, Effective 01/01/2026, Arkansas Department of Finance and Administration. The 2026 withholding formula subtracts a $2,470 standard deduction. Checked 2026-10-12.
2025 AR1000F and AR1000NR instructions (archived copy), Arkansas Department of Finance and Administration. Personal tax credits of $29: one per taxpayer and spouse, one more for a head of household. TY2025 amount (the latest). Engine 1.7.0: AR1000F line 7B: a $29 personal tax credit per dependent (nonrefundable); AR1000ADJ: a $500 adjustment for each dependent with a total and permanent disability (physician-certified, AR1000DC). An IRA distribution before 59½ gets the $6,000 exemption only on account of death or disability, and line 32 adds 10% of the federal additional tax on early distributions. The developmentally disabled dependent credit needs a state certification the input does not carry. Checked 2026-10-12.
2025 AR1000F and AR1000NR Instructions (archived copy), Arkansas Department of Finance and Administration. Line 36 / AR1000TC line 6: the Additional Tax Credit for Qualified Individuals ($60 up to $26,500 of net taxable income, $5 less per $100 above, none above $27,600; doubled for a joint return), and line 26: the Low Income Tax Tables for single, head-of-household and joint filers whose total income from all sources is within the table, who may give up the military, pension and IRA exemptions to use them (engine 1.6.0; 2025 tables and amounts in code). Checked 2026-09-27.
Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf, Arkansas Department of Finance and Administration (archived copy). Engine 1.7.0: AR1000F line 7B: a $29 personal tax credit per dependent (nonrefundable); AR1000ADJ: a $500 adjustment for each dependent with a total and permanent disability (physician-certified, AR1000DC). An IRA distribution before 59½ gets the $6,000 exemption only on account of death or disability, and line 32 adds 10% of the federal additional tax on early distributions. The developmentally disabled dependent credit needs a state certification the input does not carry. Checked 2026-10-12.
2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column, Arkansas Department of Finance and Administration. Engine 1.8.0: a married couple may file separately on the same return (status 4): each spouse's column is taxed on its own and the qualified-individual credit is figured per column; the engine computes it when the request carries the spouse's own amounts and takes the lower result. Checked 2026-10-12.

Age 65+ subtractions and credits

An additional nonrefundable credit of $29 per taxpayer at age 65 or older.

2025 AR1000F and AR1000NR instructions (archived copy), Arkansas Department of Finance and Administration. A $29 personal tax credit per taxpayer 65 or older. The "65 Special" credit (another $29 for a taxpayer 65 or older who claims no line 18 retirement exemption) is calculated from engine 1.6.0, and taken as an election against the exemption from engine 1.8.0 (the lower tax). Checked 2026-10-12.
2025 AR1000F and AR1000NR Instructions (archived copy), Arkansas Department of Finance and Administration. Line 7A's "65 Special": one more $29 credit per taxpayer 65 or older who claims no line 18 retirement exemption (engine 1.6.0). Checked 2026-09-27.

Social Security

Social Security benefits are fully exempt: none of the federally taxable amount enters the state base.

API value: socialSecurityRule: "exempt". The engine's input is the federally taxable amount; income tests use the sum of the income components as the adjusted-gross-income proxy.

2025 AR1000F and AR1000NR Instructions, Arkansas Department of Finance and Administration. Social Security benefits are on the DFA list of income exempt from Arkansas income tax. Checked 2026-10-12.

IRA, 401(k) and private pensions

Pension, annuity and IRA/401(k) distributions: up to $6,000 excluded per taxpayer ($12,000 on a joint return) at any age.
IRA-sourced dollars qualify only from age 59 (the engine's whole-year stand-in for 59½); employer-plan dollars qualify at any age.
Joint returns: the cap is per taxpayer. With the spouse's age given (couples), each spouse's own dollars are tested against that spouse's own age and cap; without it one household age applies and the $12,000 joint cap covers pooled income.

Source review notes (what the sources do not state outright, or what the engine does not carry):

The statute (Ark. Code §26-51-307) could not be fetched from an official site.

2025 AR1000F and AR1000NR Instructions, Arkansas Department of Finance and Administration. Each taxpayer may exempt the first $6,000 of employer-plan retirement benefits (no age or retirement requirement) and of traditional IRA distributions received after age 59½, under one combined $6,000 cap per taxpayer. Checked 2026-10-12.
Arkansas Department of Finance and Administration: 2025_AR1000F_and_AR1000NR_Instructions.pdf, Arkansas Department of Finance and Administration (archived copy). Engine 1.7.0: AR1000F line 7B: a $29 personal tax credit per dependent (nonrefundable); AR1000ADJ: a $500 adjustment for each dependent with a total and permanent disability (physician-certified, AR1000DC). An IRA distribution before 59½ gets the $6,000 exemption only on account of death or disability, and line 32 adds 10% of the federal additional tax on early distributions. The developmentally disabled dependent credit needs a state certification the input does not carry. Checked 2026-10-12.
Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf, Arkansas Department of Finance and Administration (archived copy). Engine 1.7.0: AR1000F line 7B: a $29 personal tax credit per dependent (nonrefundable); AR1000ADJ: a $500 adjustment for each dependent with a total and permanent disability (physician-certified, AR1000DC). An IRA distribution before 59½ gets the $6,000 exemption only on account of death or disability, and line 32 adds 10% of the federal additional tax on early distributions. The developmentally disabled dependent credit needs a state certification the input does not carry. Checked 2026-10-12.

Public pensions

No separate treatment: public pensions follow the rules for other retirement income above.

2025 AR1000F and AR1000NR Instructions, Arkansas Department of Finance and Administration. Public-employer pensions get the same $6,000 per-taxpayer exemption as private employer plans, with no separate public-pension exclusion. Checked 2026-10-12.

Military retirement pay

Military retirement pay is fully exempt, at any age.
The military amount excluded reduces that taxpayer's general retirement-income exclusion.
Rules are applied per taxpayer at that person's own age when the spouse's age is given. API value: rules.militaryRetirement.treatment: "exempt".

2025 AR1000F and AR1000NR Instructions, Arkansas Department of Finance and Administration (archived copy). Military retirement pay is exempt, and the amount exempted uses up the retiree's $6,000 general retirement exemption. Checked 2026-09-27.
Whats new, Arkansas Department of Finance and Administration. Military retirement pay is exempt, and the amount exempted uses up the retiree's $6,000 general retirement exemption. Checked 2026-10-12.

Roth conversions

A conversion is a traditional IRA distribution, so from age 59 (the engine's reading of 59½) it shares the retirement-income exemption with the other IRA and employer-plan distributions, up to $6,000 per person; the part above it, and a conversion at a younger age, is taxed as ordinary income.

Source review notes (what the sources do not state outright, or what the engine does not carry):

No DFA instruction, rule or opinion names Roth conversions; the engine reads the exemption's own words ("a traditional IRA distribution" after 59½), which a conversion is, and lets it share the $6,000 (engine 1.8.0, DIFF-AR-03).

2025 AR1000F and AR1000NR Instructions, Arkansas Department of Finance and Administration. Taxable traditional IRA distributions are reported as Arkansas income, and "the first $6,000" of a traditional IRA distribution received after 59½ is exempt. The instructions do not mention Roth conversions; a conversion is a traditional IRA distribution (Form 1040 lines 4a/4b), so from engine 1.8.0 it shares the $6,000 exemption with the other IRA and employer-plan money (DIFF-AR-03). Checked 2026-10-12.

Capital gains

50% of net long-term gain enters the base (50% is excluded) and is taxed at ordinary rates.
Short-term gains are ordinary income.

Source review notes (what the sources do not state outright, or what the engine does not carry):

The AR1000D PDF's embedded font garbles its header note about the 50% rule (and the separate long-term gain exemption); only the line-8 wording is machine-readable.

AR1000D 2025 - Arkansas Capital Gains and Losses, Arkansas Department of Finance and Administration. Only 50% of Arkansas net capital gain (capped at $10,000,000) is taxable; the other 50% is excluded. Checked 2026-10-12.
2025 AR1000F and AR1000NR Instructions, Arkansas Department of Finance and Administration. Capital gains reported on the federal Schedule D are carried to Form AR1000D to determine the taxable Arkansas amount. Checked 2026-10-12.
2025 Form AR1000D (archived copy), Arkansas Department of Finance and Administration. Engine 1.8.0: net capital gain above $10,000,000 is exempt (line 7b), applied once per return. Checked 2026-09-28.
2025 AR1000F and AR1000NR Instructions, Arkansas Department of Finance and Administration. Arkansas limits the capital loss deducted after offsetting gains to $3,000 ($1,500 per taxpayer on a separate return), as the federal return does (engine 1.9.0: cap_loss_limit). Checked 2026-10-12.

Blindness and disability

A nonrefundable credit of $29 for each blind person.
The retirement income exclusion's age test is met by a disabled person: the engine treats them as 59 for that exclusion only.
The API applies these through its blind, disabled, spouse.blind and spouse.disabled fields; absent means false.

2025 AR1000F and AR1000NR instructions (archived copy), Arkansas Department of Finance and Administration. A $29 credit per blind taxpayer; IRA distributions taken before 59 1/2 on account of disability qualify for the retirement exemption. Checked 2026-10-12.

Part-year and nonresident returns

Part-year resident (AR1000NR): the tax a full-year resident would owe on all the year's income, times the state's income ratio.
Nonresident (AR1000NR): the tax a full-year resident would owe on all the year's income, times the state's income ratio.
The ratio: the state's own AGI (after its subtractions) of the state's income over the state AGI of the whole year, rounded to 6 places, at most 1.
A nonresident's retirement income is not taxable by the state (4 U.S.C. §114); the API refuses it in residency.stateIncome. The credit for tax paid to another state and the earned income credits on these returns are not computed.

Married couples whose residency differs (engine 1.13.0)

With residency.spouse on a joint request, each allowed treatment is calculated and reported in residency.couple; tax is the required one, else the state's default, else the couple's residency.election, else the joint return the request's mfj names. Each rule is quoted from the state's instructions (engine 1.14.0: and its statutes, regulations, bulletins and other official guidance) in the sources below.

Spouses	Arkansas's rule
One spouse a full-year resident, the other a part-year resident	the couple's choice: a joint part-year / nonresident return or separate returns.
One spouse a full-year resident, the other a nonresident	the couple's choice: a joint part-year / nonresident return or separate returns.
One spouse a part-year resident, the other a nonresident	the couple's choice: a joint part-year / nonresident return or separate returns.
Both part-year residents, different resident periods	the couple's choice: a joint part-year / nonresident return or separate returns.
Both nonresidents, only one with income from the state	the couple's choice: a joint part-year / nonresident return or separate returns.

2025 Arkansas Individual Income Tax Instructions (AR1000F and AR1000NR), Arkansas Department of Finance and Administration. Part-year / nonresident return (engine 1.12.0, residency): Compute total tax on all-year income in Columns A/B as if a full-year resident, subtract all allowable credits, then multiply the remaining balance by the Arkansas percentage. Checked 2026-10-12.
2025 AR1000F and AR1000NR Arkansas Individual Income Tax Instructions, Arkansas Department of Finance and Administration. Married couples whose residency differs (engine 1.13.0): Checked 2026-10-06.

Worked examples

Computed by the engine for the fixed households below (the same ones for every state, so states compare directly). Federal tax is not supplied, so a federal-tax deduction is not taken; the income tests use the sum of the components as income.

Household (engine inputs)	State tax
Single, 67: $30,000 private pension, $20,000 IRA, $10,000 interest, $24,000 Social Security ($17,000 federally taxable), $5,000 long-term gain	$1,573.91
Married filing jointly, 70: $40,000 public pension, $40,000 IRA, $20,000 interest, $40,000 Social Security ($34,000 federally taxable), $10,000 long-term gain	$2,775.02
Single, 60: $60,000 other ordinary income and a $50,000 Roth conversion	$3,647.71
Married filing jointly, 66: $30,000 IRA, a $40,000 Roth conversion, $30,000 Social Security ($25,500 federally taxable)	$1,480.02
Single, 58: $36,000 military retirement pay and $30,000 wages	$617.41
Married filing jointly, ages 67 and 61: $50,000 IRA, $10,000 interest, $30,000 Social Security ($25,500 federally taxable), each spouse's age given	$1,139.02

Line by line

The intermediate lines the engine records while it computes each example (its detail record, printed as it comes out; lines that are zero are left out). The engine's documentation build checks that the lines add up to the taxable income and the tax, for every state, filing status and a grid of households. Each line links the engine step that produces it.

Single, 67: $30,000 private pension, $20,000 IRA, $10,000 interest, $24,000 Social Security ($17,000 federally taxable), $5,000 long-term gain: $1,573.91

Line	Amount
Income total used by the income tests	$82,000
Retirement income and conversions excluded (not in the base)	$6,000
+ Other ordinary income in the base	$10,000
+ Retirement income in the base	$44,000
+ Long-term gain in the base	$2,500
− Standard deduction	$2,470
= State taxable income	$54,030
Tax from the rate schedule	$1,631.91
= Tax before credits	$1,631.91
Per-exemption credit	$29
Senior credit	$29
− Credits used (never more than the tax)	$58
= Tax	$1,573.91

Married filing jointly, 70: $40,000 public pension, $40,000 IRA, $20,000 interest, $40,000 Social Security ($34,000 federally taxable), $10,000 long-term gain: $2,775.02

Line	Amount
Income total used by the income tests	$144,000
Retirement income and conversions excluded (not in the base)	$12,000
+ Other ordinary income in the base	$20,000
+ Retirement income in the base	$68,000
+ Long-term gain in the base	$5,000
− Standard deduction	$4,940
= State taxable income	$88,060
Tax from the rate schedule	$2,891.02
= Tax before credits	$2,891.02
Per-exemption credit	$58
Senior credit	$58
− Credits used (never more than the tax)	$116
= Tax	$2,775.02

Single, 60: $60,000 other ordinary income and a $50,000 Roth conversion: $3,647.71

Line	Amount
Income total used by the income tests	$110,000
Retirement income and conversions excluded (not in the base)	$6,000
+ Other ordinary income in the base	$60,000
+ Retirement income in the base	$44,000
− Standard deduction	$2,470
= State taxable income	$101,530
Tax from the rate schedule	$3,676.71
= Tax before credits	$3,676.71
Per-exemption credit	$29
− Credits used (never more than the tax)	$29
= Tax	$3,647.71

Married filing jointly, 66: $30,000 IRA, a $40,000 Roth conversion, $30,000 Social Security ($25,500 federally taxable): $1,480.02

Line	Amount
Income total used by the income tests	$95,500
Retirement income and conversions excluded (not in the base)	$12,000
+ Retirement income in the base	$58,000
− Standard deduction	$4,940
= State taxable income	$53,060
Tax from the rate schedule	$1,596.02
= Tax before credits	$1,596.02
Per-exemption credit	$58
Senior credit	$58
− Credits used (never more than the tax)	$116
= Tax	$1,480.02

Single, 58: $36,000 military retirement pay and $30,000 wages: $617.41

Line	Amount
Income total used by the income tests	$66,000
Military pay excluded (not in the base)	$36,000
+ Other ordinary income in the base	$30,000
− Standard deduction	$2,470
= State taxable income	$27,530
Tax from the rate schedule	$651.41
= Tax before credits	$651.41
Per-exemption credit	$29
Credit for qualified individuals	$5
− Credits used (never more than the tax)	$34
= Tax	$617.41

Married filing jointly, ages 67 and 61: $50,000 IRA, $10,000 interest, $30,000 Social Security ($25,500 federally taxable), each spouse's age given: $1,139.02

Line	Amount
Income total used by the income tests	$85,500
Retirement income and conversions excluded (not in the base)	$12,000
+ Other ordinary income in the base	$10,000
+ Retirement income in the base	$38,000
− Standard deduction	$4,940
= State taxable income	$43,060
Tax from the rate schedule	$1,226.02
= Tax before credits	$1,226.02
Per-exemption credit	$58
Senior credit	$29
− Credits used (never more than the tax)	$87
= Tax	$1,139.02

After 2026: how the amounts move

A request with projection (API) estimates a later tax year from these rules: every dollar amount and age test below moves the way Arkansas's law moves it. Rates and the rules themselves stay the 2026 ones (how projection works).

Amounts (engine fields)	After 2026	What the law says, and the source
`brackets_single` (the single rate schedule's thresholds), `brackets_mfj` (the mfj rate schedule's thresholds), `high_income_threshold`, `high_income_low_band`	Indexed: annual adjustment 'in accordance with the method set forth in' A.C.A. 26-51-201(d) (cost-of-living method; the subsection text itself was not read); not rounded (the statute states no rounding).	Act 1 of 2026 (1st Ex. Sess.) sets the 2026 tables (0% to $5,599, 2%, 3%, 3.4%, 3.7%; high-income table above $94,700 with a $4,700 2% band) and keeps the rule that the (a)(1)-(4) tables 'shall be adjusted annually in accordance with the method set forth in subsection (d)'. The (d) method's index and rounding could not be read (no reachable copy of 26-51-201). Act 1 of the 2026 First Extraordinary Session (HB 1001), amending A.C.A. 26-51-201 (Internet Archive capture) (Arkansas General Assembly, legislation): Tables and the annual-adjustment clause. Quoted: "the tables set forth in subdivisions (a)(1)-(3) (a)(1)-(4) 15 of this section shall be adjusted annually in accordance with the method set 16 forth in subsection (d) of this section"; "$26,400 $94,700 3.7%". Checked 2026-09-30.
`high_income_adj_start`, `high_income_adj_step`, `high_income_adj_width`	Not established from an official source: held, and a projected API result that depends on it is refused (400).	The bracket-adjustment table for net income $94,701-$97,600 ($290 falling $10 per $100 band) is part of the (a)(4) tables that are adjusted annually under 26-51-201(d); whether that method moves the adjustment amounts, the $10 step or the $100 band width (versus only the income ranges) is not established because 26-51-201(d) was not read. Engine 1.12.0 re-check: 26-51-201(d) moves 'the minimum and maximum dollar amounts for each rate bracket' only and says nothing of the (a)(4)(C) adjustment table; DFA's 2025 table kept the $100 band and $10 step with a shifted start, but no official text states the method, so the fields stay unknown (held; a projection that depends on them is refused). Act 1 of the 2026 First Extraordinary Session (HB 1001), amending A.C.A. 26-51-201 (Internet Archive capture) (Arkansas General Assembly, legislation): 2026 adjustment table. Quoted: "$94,701 $94,800 $290 21 $94,801 $94,900 $280". Checked 2026-09-30.
`std_deduction_single`, `std_deduction_mfj`	Indexed: CPI-U (U.S. Dept. of Labor), 12-month average ending August 31, current vs. preceding year, increase capped at 3% (A.C.A. 26-51-430(c)); the increase rounded to the nearest $10.	The $2,200 per-taxpayer standard deduction is increased annually by the cost-of-living adjustment: the year-over-year increase in CPI-U (12-month average ending August 31), capped at 3%, no change if CPI does not rise, rounded to the nearest $10 ($2,470 in DFA's 2026 withholding formula). A.C.A. § 26-51-430 (2024 code on Justia; Internet Archive capture) (Justia (unofficial publication of the Arkansas Code), statute): Subsection (c). Quoted: "shall increase annually the standard deduction provided under subsection (b) of this section by the cost-of-living adjustment for the current calendar year, rounding the amount to the nearest ten dollars ($10.00)"; "not to exceed three percent (3%)". Checked 2026-09-30. Withholding Tax Formula Method, effective 01/01/2026 (Arkansas Department of Finance and Administration, instructions): 2026 figure. Quoted: "subtract the standard deduction of $ 2,470 to arrive at net taxable income". Checked 2026-10-12.
`exemption_credit_per`, `senior_credit_per`, `blind_credit`, `senior_special_credit_per`, `dep_credit`	Not established from an official source: held, and a projected API result that depends on it is refused (400).	The personal credits ($20 individual / $40 joint base, $29 per exemption in 2025-2026 DFA forms) are CPI-adjusted (vs 2001, nearest dollar) only in a year when the May general-revenue forecast shows at least 4.2% growth and further conditions in 26-51-501(f) hold; the statute's additional credits for blind/deaf and 65+ read as a flat $20 while DFA applies $29. Whether and when these credits rise cannot be established from the statute alone (revenue-conditional). Engine 1.12.0 re-check: the 26-51-501(f) revenue conditions were readable only in an unofficial copy and no official text explains DFA's $29 for the additional credits, so the fields stay unknown (held; projections depending on them are refused). A.C.A. § 26-51-501 (2024 code on Justia; Internet Archive capture) (Justia (unofficial publication of the Arkansas Code), statute): Conditional indexing. Quoted: "the secretary of the department of finance and administration shall increase the adjusted individual credit and adjusted joint credit by the cost-of-living adjustment for that current calendar year, rounding each amount to the nearest dollar"; "the adjusted credit applicable for any calendar year shall not be increased unless". Checked 2026-09-30. Withholding Tax Formula Method, effective 01/01/2026 (Arkansas Department of Finance and Administration, instructions): 2026 credit amount. Quoted: "by $29.00 to arrive at the total amount of annual personal tax credits allowed". Checked 2026-10-12.
`credit_senior_min_age`	Attained age: the same age in every year.	Additional credit for a taxpayer 65 or older; fixed age. A.C.A. § 26-51-501 (2024 code on Justia; Internet Archive capture) (Justia (unofficial publication of the Arkansas Code), statute): Age wording. Quoted: "a single individual of sixty-five (65) years of age or older shall be entitled to an additional tax credit". Checked 2026-09-30.
`ar-qualified-credit-table` (a table held in code)	Indexed: annual adjustment 'in accordance with the method set forth in' A.C.A. 26-51-201(d) (cost-of-living method; the subsection text itself was not read); not rounded (the statute states no rounding). The engine carries the 2025 figure (the latest published) for 2026, so a projection adds 1 year of indexing at the factor's average annual rate.	The additional credit for qualified low-income individuals ($60, falling $5 per $100 of net income over the start) is adjusted annually under the 26-51-201(d) method ($23,600 start in the 2021 act, $26,500 in the 2025 booklet). A.C.A. § 26-51-501 (2024 code on Justia; Internet Archive capture) (Justia (unofficial publication of the Arkansas Code), statute): Subsection (a)(6)(c). Quoted: "the table in subdivision (a)(6)(a) of this section shall be adjusted annually in accordance with the method set forth in § 26-51-201(d)". Checked 2026-09-30. 2025 AR1000F and AR1000NR Instructions (Internet Archive copy) (Arkansas Department of Finance and Administration, instructions): 2025 table. Quoted: "income range credit $0 - $26,500 $60 $26,501 - $26,600 $55". Checked 2026-10-12.
`ar-low-income-tables` (a table held in code)	Not established from an official source: held, and a projected API result that depends on it is refused (400).	The low-income tax tables (DFA booklet) are published each year; the statute governing their annual recomputation was not read, so the indexing method is not established. Engine 1.12.0 re-check: no official text of the governing statute (26-51-301) could be reached; unknown is kept. 2025 AR1000F and AR1000NR Instructions (Internet Archive copy) (Arkansas Department of Finance and Administration, instructions): Low income tables exist in the 2025 booklet. Quoted: "above $29,000, use standard or itemized deductions and regular income tax table". Checked 2026-10-12.
`retirement_income_exclusion_single`, `retirement_income_exclusion_mfj`	Fixed in law: held at the rules-year amount in every later year.	The first $6,000 of employer-plan or post-59 1/2 IRA distributions is exempt per taxpayer (A.C.A. 26-51-307); DFA instructions show a flat $6,000 with no adjustment language. Statute text not read directly. 2025 AR1000F and AR1000NR Instructions (Internet Archive copy) (Arkansas Department of Finance and Administration, instructions): Amount. Quoted: "if you received a traditional ira distribution after reaching age fifty-nine and one-half (59 1/2), the first $6,000 is exempt from tax". Checked 2026-10-12.
`retirement_exclusion_ira_min_age`, `retirement_disabled_age`, `conversion_pool_min_age`	Attained age: the same age in every year.	IRA distributions qualify after age 59 1/2 (engine 59); distributions on account of death or disability also qualify; fixed age. 2025 AR1000F and AR1000NR Instructions (Internet Archive copy) (Arkansas Department of Finance and Administration, instructions): Age wording. Quoted: "if you received a traditional ira distribution after reaching the age of fifty-nine and one-half (59 1/2), the first $6,000 is exempt from tax"; "premature distributions made on account of the participant's death or disability also qualify for the exemption". Checked 2026-10-12.
`dep_disabled_exemption`	Fixed in law: held at the rules-year amount in every later year.	$500 adjustment for a dependent with disabilities (AR1000DC certificate); flat amount per DFA, statute not read. 2025 AR1000DC Disabled Individual's Certificate (Internet Archive copy) (Arkansas Department of Finance and Administration, instructions): States the $500 amount. Quoted: "enter $500 on line 13 of ar1000adj". Checked 2026-10-12.
`ltcg_gain_cap`	Fixed in law: held at the rules-year amount in every later year.	Net capital gain above $10,000,000 is exempt (AR1000D line 7b; Act 1488 of 2013); flat amount. 2025 Form AR1000D (Internet Archive copy) (Arkansas Department of Finance and Administration, instructions): Line 7b cap. Quoted: "if the amount on line 7a is over $10,000,000, only enter $10,000,000". Checked 2026-09-30.
`cap_loss_limit`, `cap_loss_limit_mfs`	Fixed in law: held at the rules-year amount in every later year.	Arkansas follows the federal $3,000/$1,500 capital loss limit (IRC 1211(b)), fixed. 26 U.S.C. 1211 (Limitation on capital losses) (Legal Information Institute (Cornell) - U.S. Code, federal): IRC 1211(b) limits a non-corporate capital loss against other income to $3,000 ($1,500 MFS), with no inflation adjustment. Quoted: "(1) $3,000 ($1,500 in the case of a married individual filing a separate return), or". Checked 2026-10-12.

Enacted for later years, not applied by the projection

None found: the research found no change enacted for years after 2026 beyond the schedules above.

What the engine does not calculate, and known approximations

Arkansas's high-income table (net income over $94,700: 2% on the first $4,700, 3.7% above, less the bracket adjustment) is applied from engine 1.8.0 per A.C.A. 26-51-201(a)(4) as amended by Act 1 of the 2026 First Extraordinary Session.
Net capital gain above $10 million is exempt (AR1000D line 7b, engine 1.8.0), applied once per return: the gain is not attributed to a spouse.
A Roth conversion after 59½ shares the $6,000 exemption with the other IRA and employer-plan money: the instructions exempt "a traditional IRA distribution" after 59½ and a conversion is one (Form 1040 lines 4a/4b); no DFA text names conversions, so this is the reading of the instructions' own words (engine 1.8.0, DIFF-AR-03).
The deaf credit is not modeled. (Engine 1.7.0: the death and disability exceptions to the IRA age gate, and the line 32 tax of 10% of the federal early-distribution additional tax, follow earlyDistributions and earlyDistributionException.)
The Regular Income Tax Table taxes the midpoint of each $100 row and rounds to whole dollars; the engine applies the exact bracket schedule to net taxable income (differences up to $2.35 either way).
Filing status 4 (separately on the same return) is computed when the request carries the spouse's own amounts (engine 1.8.0): each spouse's own wages, retirement and conversion income and early IRA dollars go to that spouse's column, and income the request does not attribute (interest, dividends, gains) and the deductions are split equally; the lower of status 2 and status 4 is taken. Without the spouse's amounts only status 2 is computed.
The Low Income Tax Tables (including the two-or-more-dependents tables, engine 1.7.0) and the Additional Tax Credit for Qualified Individuals are the 2025 ones (the 2026 amounts are not published).
Ages are whole years at the end of 2026: a person aged 59 then is taken to have reached 59½ for the IRA exemption and a conversion (the statute tests 59½; born in the second half of the year, the person had not).
The developmentally disabled dependent credit is not calculated: it needs the state's certification of the dependent. Sources: 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column (checked 2026-10-12).
The 2026 Low Income Tax Tables and qualified-individual credit amounts, which the DFA has not published (the 2025 ones are used). Sources: 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column (checked 2026-10-12).
The AR1000ADJ adjustments other than the support for a dependent with disabilities (contributions to IRA, HSA, MSA, tuition-savings, ABLE and intergenerational-trust accounts, self-employed health insurance and retirement plans, student-loan interest, moving expenses, alimony paid, forfeited interest, organ donation, military reserve, reforestation and teacher classroom expenses, and the Texarkana border-city exemption) are not calculated: they need payments and facts the inputs do not carry. Sources: 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column (checked 2026-10-12).
The lump-sum distribution averaging schedule (Form AR1000TD) is not calculated: the inputs do not say whether a distribution is a qualifying lump sum, so every distribution is taxed at the regular rates. Sources: 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000F_and_AR1000NR_Instructions.pdf (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12).
Filing status 4 (separately on the same return) is computed only when the request carries the spouse's own amounts; without them the joint return is figured on status 2. Income the request does not attribute (interest, dividends, gains) is split equally between the columns. Sources: 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Withholding Tax Formula Method, Effective 01/01/2026 (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy) (checked 2026-10-12); 2025 AR1000F and AR1000NR Instructions (archived copy) (checked 2026-09-27); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12); 2025 AR1000F and AR1000NR instructions (archived copy): filing status 4 and the credit worksheet per column (checked 2026-10-12).
Income Arkansas exempts that the inputs cannot single out is not calculated: active-duty military pay and interest on United States and Arkansas obligations (entered as wages, ordinary income or a pension, such income is taxed; leave it out of the amounts entered). Sources: 2025 AR1000F and AR1000NR Instructions (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000F_and_AR1000NR_Instructions.pdf (checked 2026-10-12); Arkansas Department of Finance and Administration: 2025_AR1000DC_DisabledIndividualsCertificate.pdf (checked 2026-10-12).

What the engine does not calculate for any state (itemized deductions, credits beyond those listed, part-year residents, and more) is listed on the calculation order page.

Verification

Worksheet-tested Arkansas Form AR1000F (TY2025 form and instructions with the official 2026 figures: DFA 2026 withholding-formula brackets, Act 1 of 2026 top rate 3.7%) replayed line by line — lines 7A/7C/34 personal credits, 14 with AR1000D (50% net capital gain), 16, 17 military retirement, 18A/18B $6,000 per-taxpayer exemption, 25-29 standard deduction and Regular/Low Income Tax Table, 33-38 — in backend/tests/test_state_worksheets_1.c.

Golden scenarios (hand-computed expected tax, asserted to within $1): ARCONV1.
State-specific unit tests: test_group2_ltcg_partial_exclusion, test_mfs_one_schedule_states, test_ar_ira_age_gate_and_conversion, test_ar_per_spouse_and_gate, test_ar_status_4, test_ar_early_rules, test_dependent_count_clamped, test_split_path_without_ages, test_equal_ages_split_matches_legacy_split, test_military_reduces_general, test_worked_ratios, test_engine_paths, test_disability_rules, test_hoh_and_credit_gaps.
Structural tests covering every state: 8.
State forms and worksheets followed in the test derivations: Arkansas Form AR1000F (2025) lines 7A-7C, 8, 14, 16, 17, 18A/18B, 23-29, 33, 34, 37, 38 and instructions; AR1000F line 18A/18B $6,000 per-taxpayer exemption (employer plans, no age gate; traditional IRA after 59 1/2); AR1000F line 17 military retirement exemption and its use of the $6,000 exemption; Form AR1000D (2025) lines 7a-9 (50% of net long-term gain; short-term gain in full); 2025 Regular Income Tax Table ($100-row midpoint method) with the 2026 brackets; 2025 Low Income Tax Tables (qualifications and MFJ table); AR1000F line 7A personal tax credits ($29 personal, HOH, age 65, 65 Special) and line 38 non-refundability; AR1000F line 29 high-income table and bracket adjustment, AR1000D line 7b, filing status 4 columns and the AR1000TC per-column credit (engine 1.8.0; backend/tests/formmap_fm1/ar.inc).