APRIL 2026 STATE REVENUE REPORT

The Arkansas Department of Finance and Administration (DFA) reported today that April General Revenue collections were 28.5%, or $184.5 million, greater than last year. An additional $164.6 million was added to the fiscal year surplus, with April revenue exceeding the forecast by 24.6%. This brings the year-to-date surplus to $226.1 million, or 4%, with two collection months remaining in the fiscal year.

Collections increased across all major tax categories, with Individual Income Tax predominantly fueling the surplus. April Individual Income Tax collections were up $102.5 million, or 20.7%, compared to last April. Collections also exceeded the DFA forecast by $91.8 million, or 18.2%. DFA attributed part of this growth to the Governor’s extension of the income tax filing date last year to July 31, which delayed payments that would typically have been received in April. However, DFA also reported growth across several categories within Individual Income Tax. Specifically, “Return and estimated payments displayed double-digit growth while tax withholdings grew 4.9%.” The distribution of growth across collection categories appears to indicate continued economic strength in Arkansas.

It should be noted that Individual Income Tax refunds were down $42.8 million from last April, or $24.7 million below forecast, which contributed to the April surplus.

Sales and Use Tax collections were $17.5 million, or 5.8%, higher than last April and exceeded forecast levels by $12.5 million, or 4.1%. DFA reported that “most major reporting sectors indicated moderate to strong growth over the prior year.” Notable exceptions included Manufacturing, which declined 5.2%, and Accommodations and Food Services, which remained flat compared to last April. Overall, Sales and Use Tax appears to be keeping pace with normal price inflation but does not indicate significant economic expansion.

Corporate Income Tax increased by $16 million over last April and exceeded the forecast by $23.3 million, also contributing to the April surplus.

State revenue appears healthy as the Fiscal Year comes to a close. As the State Legislature meets in special session to consider reductions in Individual and Corporate Income Tax rates, April tax collections may help encourage those efforts. We can look forward to the outcome of the special session and the updated revenue forecast for the next fiscal year, which is expected to be issued shortly by DFA. Optimistically, we can look forward to a continued growing economy and prudent spending.

The April 2026 revenue report may be viewed here.