HB 1001

Stricken language would be deleted from and underlined language would be added to present law.
  Act 1 of the First Extraordinary Session
1 State of Arkansas  Call Item 1
2 95th General Assembly  A Bill
3 First Extraordinary Session, 2026  HOUSE BILL 1001
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5 By: Representatives Eaves, Evans, Maddox, Beaty Jr., Lundstrum, R. Burkes, McAlindon, Henley,
6 Brooks, K. Moore, Pilkington, Underwood, M. Shepherd, Painter, Gazaway, Hollowell, Andrews,
7 Womack, Dalby, K. Brown, Jean, N. Burkes, Cozart, Achor, C. Cooper, A. Brown, Duke, R. Scott
8 Richardson, Childress, Furman, Wooten, Wooldridge, Walker, Ladyman, Long, Tosh, Gramlich, Torres,
9 Steimel, Crawford, Holcomb, Eaton, B. McKenzie, McGrew, J. Moore, Ray, Rose, Bentley, McClure,
10 Milligan, Puryear, M. McElroy, Richmond, Schulz, Vaught, Perry, Unger, S. Meeks, McCollum, Pearce,
11 Hawk, Gonzales, Cavenaugh, Joey Carr, M. Brown, Barker, Wardlaw, L. Johnson, Warren, Lynch,
12 Nazarenko, Eubanks, Beck, Breaux
13 By: Senator J. Dismang
14
15For An Act To Be Entitled
16AN ACT TO REDUCE INCOME TAXES; TO REDUCE THE INCOME
17TAX RATES FOR INDIVIDUALS, TRUSTS, ESTATES, AND
18CORPORATIONS; AND FOR OTHER PURPOSES.
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20
21Subtitle
22TO REDUCE THE INCOME TAX RATES FOR
23INDIVIDUALS, TRUSTS, ESTATES, AND
24CORPORATIONS.
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27 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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29SECTION 1.      Arkansas Code § 26-51-201(a)(4), concerning the income tax
30 imposed on individuals, trusts, and estates, is amended to read as follows:
31(4)    For tax years beginning on or after January 1, 2026:
32(A)    Every resident, individual, trust, or estate having
33 net income less than or equal to ninety-four thousand seven hundred dollars
34 ($94,700) shall determine the amount of income tax due under this subsection
35 in accordance with the table set forth below:
36 From  Less Than or Equal To  Rate
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1 $0  $5,599  0%
2 $5,600  $11,199  2%
3 $11,200  $15,999  3%
4 $16,000  $26,399  3.4%
5 $26,400  $94,700  3.7%
6(B)   Every resident, individual, trust, or estate having
7 net income greater than ninety-four thousand seven hundred dollars ($94,700)
8 shall determine the amount of income tax due under this subsection in
9 accordance with the table set forth below:
10 From  Less Than or Equal To  Rate
11 $0  $4,700  2%
12 $4,701 and above  3.7%
13(C)   Every resident, individual, trust, or estate having
14 net income greater than or equal to ninety-four thousand seven hundred one
15 dollars ($94,701) but not greater than ninety-seven thousand six hundred
16 dollars ($97,600) shall reduce the amount of income tax due as determined
17 under subdivision (a)(4)(B) of this section by deducting a bracket adjustment
18 amount in accordance with the table set forth below:
19 From  Less Than or Equal To  Bracket Adjustment Amount
20 $94,701  $94,800  $290
21 $94,801  $94,900  $280
22 $94,901  $95,000  $270
23 $95,001  $95,100  $260
24 $95,101  $95,200  $250
25 $95,201  $95,300  $240
26 $95,301  $95,400  $230
27 $95,401  $95,500  $220
28 $95,501  $95,600  $210
29 $95,601  $95,700  $200
30 $95,701  $95,800  $190
31 $95,801  $95,900  $180
32 $95,901  $96,000  $170
33 $96,001  $96,100  $160
34 $96,101  $96,200  $150
35 $96,201  $96,300  $140
36 $96,301  $96,400  $130
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1 $96,401  $96,500  $120
2 $96,501  $96,600  $110
3 $96,601  $96,700  $100
4 $96,701  $96,800  $90
5 $96,801  $96,900  $80
6 $96,901  $97,000  $70
7 $97,001  $97,100  $60
8 $97,101  $97,200  $50
9 $97,201  $97,300  $40
10 $97,301  $97,400  $30
11 $97,401  $97,500  $20
12 $97,501  $97,600  $10
13 $97,601 and over  $0
14(5)     The tables set forth in subdivisions (a)(1)-(3) (a)(1)-(4)
15 of this section shall be adjusted annually in accordance with the method set
16 forth in subsection (d) of this section.
17
18      SECTION 2.     Arkansas Code § 26-51-205(a), concerning the income tax
19 levied on domestic corporations, is amended to add an additional subdivision
20 to read as follows:
21(6)     For tax years beginning on or after January 1, 2027, every
22 corporation organized under the laws of this state shall pay annually an
23 income tax with respect to carrying on or doing business on the entire net
24 income of the corporation, as now defined by the laws of this state, received
25 by the corporation during the income year, on the following basis:
26(A)   On the first three thousand dollars ($3,000) of net
27 income or any part thereof, one percent (1%);
28(B)   On the next three thousand dollars ($3,000) of net
29 income or any part thereof, two percent (2%);
30(C)   On the next five thousand dollars ($5,000) of net
31 income or any part thereof, three percent (3%); and
32(D)   On net income exceeding eleven thousand dollars
33 ($11,000), four and one-tenths percent (4.1%).
34
35      SECTION 3.     Arkansas Code § 26-51-205(b), concerning the income tax
36 levied on foreign corporations, is amended to add an additional subdivision
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1 to read as follows:
2(6)   For tax years beginning on or after January 1, 2027, every
3 foreign corporation doing business within the jurisdiction of this state
4 shall pay annually an income tax on the proportion of its entire net income
5 as now defined by the income tax laws of this state, on the following basis:
6(A)   On the first three thousand dollars ($3,000) of net
7 income or any part thereof, one percent (1%);
8(B)   On the next three thousand dollars ($3,000) of net
9 income or any part thereof, two percent (2%);
10(C)   On the next five thousand dollars ($5,000) of net
11 income or any part thereof, three percent (3%); and
12(D)   On net income exceeding eleven thousand dollars
13 ($11,000), four and one-tenths percent (4.1%).
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16APPROVED: 5/6/26
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