Arkansas tax return changes for 2026

The DFA instructions say marginal rates for 2025 are 3.9%, as amended in 2024. The indexed bracket table puts the top bracket at $97,801 and over. The standard deduction is $2,470 for single, head of household and surviving spouse filers, and $4,940 for married filing jointly.

Arkansas did not adopt federal bonus depreciation, so depreciation differences still run through Form AR-OI.

The instructions’ "Special Information for Tax Year 2025" section lists the changes your preparers will notice.

• Withholding now goes on two lines: 39A for W-2 withholding and 39B for 1099 and K-1 withholding.
• Income from an entity that paid the pass-through entity tax must be reported on the individual return, with the adjustment made on Form AR-OI.
• Remote workers are taxed only on income earned while physically in Arkansas.
• The developmentally disabled credit form was renamed AR1000-DD and no longer needs five-year renewal, though AR1000TC is still filed each year.

The 2025 instructions do not mention the One Big Beautiful Bill Act, tips or overtime. Until DFA publishes guidance, do not carry Schedule 1-A amounts onto an Arkansas return on the assumption that they flow through.

Lines 39A and 39B are only as accurate as the client’s records of who withheld what. In HelloBooks, contractor and K-1 withholding can sit in its own account, which makes the split a matter of reading two balances. The Arkansas sales tax guide is at /us/sales-tax/arkansas.