Arkansas finished Fiscal Year 2026 with a $655 million general revenue surplus, marking the fifth-largest surplus in state history, according to the Arkansas Department of Finance and Administration (DFA).
State officials reported that total gross revenue collections for the fiscal year reached $8.686 billion, an increase of about $327 million, or 3.9%, compared to Fiscal Year 2025.
After required payments, refunds and other adjustments, the net available revenue totaled $7.149 billion.
The surplus represents a significant increase from the previous fiscal year, when Arkansas recorded a $367.9 million surplus.
Fiscal years in Arkansas run from July 1st through June 30th the following year.
According to DFA, the largest source of revenue in FY26 came from individual income taxes, which totaled $3.859 billion. State sales and use tax collections followed at $3.666 billion.
Corporate income tax revenue totaled $523.6 million, a decrease of about $9.5 million from the previous year, though still above budget expectations.
Officials said the surplus was transferred to the General Revenue Allotment Reserve Fund, which now totals approximately $1.221 billion.
The fund consists of unrestricted surpluses from the current and prior fiscal years, along with investment earnings. Spending from the fund requires legislative appropriation and approval from the governor.
Other major state reserve accounts include the Catastrophic Reserve Fund at $1.814 billion and the Arkansas Reserve Fund Set Aside at $1 billion, bringing total state reserves to more than $3 billion.
DFA officials said the FY26 results reflect continued growth in income and sales tax collections compared to the prior year.
Income tax revenue increased by about 7.4% year-over-year, while sales tax revenue rose by about 3.9%.
Arkansas ended Fiscal Year 2025 with a $367.9 million surplus.
Earlier years included a $698.4 million surplus in FY24 and a $1.161 billion surplus in FY23.
State officials said FY26 revenue came in about $48.2 million above the official budget estimate.
