Arkansas state revenue collections are running well ahead of expectations, with the state bringing in $153.7 million more than forecast during the first 4 months of fiscal year 2027.
According to the October 2026 General Revenue Report released Tuesday, November 3, by the Arkansas Department of Finance and Administration, net available general revenues reached $2.48 billion through October.
That is an increase of $214.4 million, or 9.5%, compared to the same period last year. Collections are also running 6.6% ahead of the state’s official revenue forecast.
The latest figures show stronger collections across several major tax categories, including sales taxes, individual income taxes and corporate income taxes.
October Collections Jump 13.3%
Net available general revenues totaled $570.6 million in October. That is $67 million, or 13.3%, higher than October 2025, and $49.2 million, or 9.4%, above the monthly forecast.
Gross general revenues for October reached $692.5 million, an increase of $63.1 million, or 10%, compared to the same month last year. Gross collections were $45.4 million above forecast.
Some individual income tax collections were affected by differences in tax filing deadlines between 2025 and 2026.
Sales Tax Revenue Shows Strong Growth
Arkansas collected $329.6 million in sales and use taxes in October, an increase of $25.3 million, or 8.3%, compared to October 2025. Collections exceeded the monthly forecast by $21.9 million, or 7.1%.
The Department of Finance and Administration reported double-digit growth in several major business sectors:
- Utilities
- Manufacturing
- Construction
- Accommodation and food services
Retail trade collections increased 8.3%, while motor vehicle collections declined 3.2%.
For the first 4 months of fiscal year 2027, sales and use tax collections totaled $1.31 billion. That is $96.2 million, or 7.9%, higher than the same period last year and $49 million above forecast.
Individual Income Tax Collections Increase
Individual income tax collections reached $291 million in October, up $24.1 million, or 9.1%, from October 2025, and $12.7 million above the monthly forecast.
State revenue analysts noted that part of the increase came from a timing difference involving last year’s disaster-related tax filing extensions, which moved some October 2025 income tax payments into November and December of that year. Return payments increased $18.1 million compared to October 2025.
Withholding tax revenue increased $5 million, or 2.2%, reflecting the state income tax cut enacted in 2026 and applied retroactively to January 1.
For the fiscal year through October, individual income tax collections totaled $1.15 billion, up $25.9 million from the previous year. Individual income tax refunds totaled $82.3 million for the 4-month period, down $16.6 million from last year.
Corporate Income Tax Collections Surge
Arkansas collected $37.5 million in corporate income taxes in October, an increase of $13.6 million, or 57.1%, compared to the same month last year. Collections exceeded the monthly forecast by $11.7 million. State analysts said increased estimated tax payments helped offset declines in corporate return payments.
For the fiscal year through October, corporate income tax collections totaled $196.6 million. That is up $66.5 million, or 51.2%, from the previous year and $64.5 million, or 48.8%, above forecast.
Education Funding Also Increases
Arkansas’s Educational Adequacy Fund received $68.8 million in October, with $66.8 million remaining after deductions. Monthly collections increased 8% compared to last year. The fund receives revenue from designated state taxes and supports the state’s obligation to provide an adequate public education system.
Other Revenue Highlights
- Tobacco taxes: $15.7 million in October, up $800,000 from last year
- Individual income tax refunds: $37.8 million in October, $13.2 million less than last year
- Corporate income tax refunds: $6.1 million in October, $2.3 million less than last year
- Total gross revenue year to date: $2.86 billion, up $209.8 million
- Net available general revenue year to date: $2.48 billion, up $214.4 million
Arkansas Revenue Outlook
With 4 months of fiscal year 2027 complete, Arkansas is collecting substantially more general revenue than originally projected. The $153.7 million positive variance reflects collections above forecast but does not by itself establish the size of any final state budget surplus.
The October report was prepared by the Department of Finance and Administration’s Economic Analysis and Tax Research division and submitted to Secretary Jim Hudson, Deputy Director Brad Nye and the Governor’s Office.
By the Numbers
Fiscal year 2027, July through October 2026
- Net available general revenue: $2.4803 billion
- Above forecast: $153.7 million (6.6%)
- Above last year: $214.4 million (9.5%)
- Gross general revenue: $2.8557 billion
- Sales and use taxes: $1.3094 billion
- Individual income taxes: $1.1473 billion
- Corporate income taxes: $196.6 million
October 2026 only
- Net available revenue: $570.6 million
- Above forecast: $49.2 million (9.4%)
- Above October 2025: $67 million (13.3%)
- Sales tax collections: $329.6 million
- Individual income tax collections: $291 million
- Corporate income tax collections: $37.5 million
SOURCE: Arkansas Department of Finance and Administration, General Revenue Report, November 3, 2026
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