Arkansas tax collections totaled $2.855 billion during the first four months of fiscal year 2027, running $153.7 million above the state’s forecast, the Department of Finance and Administration said Tuesday.
The July-through-October collections were 5.7% above the budget estimate and increased 0.9% from the same period in fiscal year 2026. Sales tax revenue continued to rise, while the timing of individual income tax payments affected the year-over-year comparison for October.
October collections rise 10%
Arkansas collected $692.5 million in total tax revenue in October, up 10% from October 2025 and 7% above the monthly forecast. Net available general revenue was $570.6 million, an increase of $67 million, or 13.3%, from a year earlier and $49.2 million, or 9.4%, above the forecast.
“State revenue collection in October increased year-over-year by more than $63 million and exceeded the monthly forecast by $45 million. Sales tax was a primary driver, with double digit growth in manufacturing, construction, and food and accommodation services,” DFA Secretary Jim Hudson said.
| October revenue category | Collection | Change from October 2025 | Comparison with forecast |
|---|---|---|---|
| Individual income tax | $291 million | Up 9.1% | 4.5% above |
| Sales tax | $329.6 million | Up 8.3% | 7.1% above |
| Corporate income tax | $37.5 million | Up $13.6 million | Up $11.7 million |
Fiscal-year totals
Individual income tax revenue reached $1.147 billion through October, 2.3% higher than during the comparable period in 2025 and 2.2% above the budget estimate. Sales tax revenue totaled $1.309 billion, up 7.9% from a year earlier and 3.9% above forecast.
- Corporate income tax revenue was $196.6 million, an increase of $66.5 million from the same period in 2025 and $64.5 million above the budget estimate.
- Net available general revenue for the first four months was approximately $2.48 billion, up $214.4 million, or 9.5%, from the same period a year earlier.
- Gross general revenue for the fiscal year to date was approximately $2.86 billion, 7.9% higher than the comparable period in fiscal year 2026.
The department attributed much of October’s individual income tax increase to payment timing. Disaster relief had extended the 2025 filing deadline to Dec. 3, shifting some payments that would normally have been received in October into November and December.
For October, the department reported double-digit growth in sales-tax collections from manufacturing, construction, utilities and accommodation and food services. Retail trade collections increased 8.3%, while motor vehicle collections declined 3.2%.
Hudson said the Department of Finance and Administration will update the state’s revenue forecast on Friday, Nov. 6.
