Arkansas began a new fiscal year in July with total tax revenue of $636.8 million, up 3.4% compared with July 2024, and 5% more than the budget estimate, according to Monday’s (Aug. 4) report from the Arkansas Department of Finance and Administration (DFA).
Sales tax revenue in July was $299.3 million, up 3.2% compared with July 2024, and 0.7% above the budget estimate. Income tax revenue was $259.9 million, up 5% compared with July 2024 and 9.6% above the budget forecast.
“July collections include some shifting of estimated tax payments from June because of the executive orders issued by Governor Sanders to provide relief to Arkansans affected by recent severe weather,” the DFA noted in the report.
Corporate income tax revenue was $24.2 million in July, up $1.3 million compared with July 2024 and $5.8 million above the budget forecast.
“The State of Arkansas had a strong beginning to fiscal year 2026, with net revenues beating (the) forecast by $29.2 million and surpassing July 2024 results by 5.6%,” DFA Secretary Jim Hudson noted in a statement. “All major revenue categories were ahead of forecast and above 2024 amounts. Overall, the Arkansas economy is showing stable growth with more Arkansans employed today than a year ago.”
Arkansas ended the previous fiscal year (July 2024 – June 2025) with tax revenue of $8.359 billion, down 4% compared with the previous fiscal year. Tax revenue in the fiscal year ending in June 2025 also resulted in a $367.9 million surplus. The fiscal year ending in June 2024 posted a $698.4 million surplus, and the fiscal year ending June 2023 had a $1.161 billion tax revenue surplus.
OTHER REVENUE SOURCES
Tobacco
July 2025: $14.9 million
July 2024: $17.1 million
Alcoholic beverages
July 2025: $7.4 million
July 2024: $7.5 million
Games of skill
July 2025: $6.5 million
July 2024: $6.3 million
Severance
July 2025: $1.6 million
July 2024: $1.2 million