Arkansas' main May tax drivers
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Arkansas collected about $316 million in sales and use taxes in May, outpacing $254.1 million in individual income taxes and $19.9 million in corporate income taxes.
Why it matters: May shows a more typical post-tax-deadline pattern after April's income tax surge, when individual collections spiked to nearly $597 million.
The big picture: Individual income tax collections were nearly 13 times corporate collections in May.
- Through the first 11 months of fiscal 2026, Arkansas has collected about $3.52 billion in individual income taxes, $3.35 billion in sales and use taxes, and $424.3 million in corporate income taxes.
Flashback: In May, Gov. Sarah Huckabee Sanders signed her fourth income tax cut since 2023, lowering the top individual rate to 3.7% and the top corporate rate to 4.1%.
- The individual cut is retroactive to Jan. 1, while the corporate cut begins in 2027. The same law also raises the homestead property tax credit to $675 for assessment years beginning in 2026.
The bottom line: Sales taxes led revenue collections in May, but individual income taxes remain Arkansas' largest source among the three major tax categories for the fiscal year.