LITTLE ROCK, Arkansas (July 2, 2026) – The state of Arkansas completed Fiscal Year 2026 (FY26) June 30, ending the year with a general revenue surplus of $655 million. This is the fifth largest surplus in state history. It was an increase from FY25, when the surplus totaled $367.9 million.
The state of Arkansas’ fiscal year begins July 1 and ends June 30.
Overall, state revenue totaled $8.686 billion in gross collections in FY26, a $327 million increase from FY25. Individual income tax collections led all categories in FY26 at $3.859 billion while state sales and use tax followed at $3.666 billion. From the $8.686 billion in overall collections, the net available total was $7.149 billion after all required payments, including individual and corporate tax refunds.
The $655 million surplus was transferred to the General Revenue Allotment Reserve Fund. Amounts in the General Revenue Allotment Reserve Fund are comprised of unrestricted current and previous fiscal year surpluses and investment earnings.
“Arkansas is doing the impossible: cutting income taxes by 25% while still recording massive surpluses and pushing state reserves to record levels,” said Governor Sarah Huckabee Sanders. “Today’s announcement shows that conservative leadership works, and I look forward to continuing our close collaboration with the legislature to slow the growth of government, expand our economy, and responsibly phase out our state income tax.”
The state of Arkansas’ reserve funds include:
- Catastrophic Reserve Fund – $1.814 billion
- General Revenue Allotment Reserve – $1.221 billion
- Arkansas Reserve Fund Set Aside – $1.000 billion
“Arkansas’ economic momentum is reflected in our FY26 results,” said Department of Finance and Administration Secretary Jim Hudson. “Personal income tax and sales tax collections were especially strong year over year, a sign that Arkansans are doing well. Our state’s reserves, totaling over $3 billion, are at record levels. Thanks to the policies of Governor Sanders, the Arkansas economy is strong going into Fiscal Year 2027.”
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