Arkansas 2026 First Extraordinary Session Status: Enacted

SB 1 — TO REDUCE THE INCOME TAX RATES FOR INDIVIDUALS, TRUSTS, ESTATES, AND CORPORATIONS.

Last action — Notification that SB1 is now Act 2

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced April 30, 2026. Enacted.

Signed by Governor Sarah Huckabee Sanders (Republican) on May 06, 2026.

Prognosis

Advancing 60% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 30 sponsors

    2 primary, 28 co-sponsors signed on.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

In plain language

The bill reduces income tax rates for individuals, trusts, estates, and corporations in Arkansas.

This legislation amends tax rates for individuals and corporations in Arkansas, effective from January 1, 2026, and 2027 respectively. It establishes specific income brackets to determine tax amounts owed.

What this means for you
  • Consumers: This bill may lead to lower income tax rates for individual taxpayers, potentially increasing disposable income.
  • Small Business: Corporations may face reduced income tax rates, affecting their financial planning and growth potential.

Bill Text

What changed in the latest version

1 added · 2 removed

Plain-language change summary

The bill SB 1 has been updated to add a new line indicating that it is now part of a broader Act from a recent special session, approved on May 6, 2026. This change helps clarify the bill's context and its relationship to previous legislation. Understanding this linkage is important because it can impact how the bill is implemented and interpreted in the future.

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Act 2 of the First Extraordinary Session State of Arkansas Call Item 1 95th General Assembly A Bill First Extraordinary Session, 2026 SENATE BILL 1 5 By:
State of Arkansas Call Item 1 95th General Assembly A Bill First Extraordinary Session, 2026 SENATE BILL 1 5 By:
APPROVED:
4 04/30/2026 11:37:28 AM JLL442
5/6/26 4 04/30/2026 11:37:28 AM JLL442
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How this bill changes current law

3 changes Share ↗

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill reduces income tax rates for individuals, trusts, estates, and corporations in Arkansas.

  • Arkansas Code § 26-51-201(a)(4)

    ($94,700) → ($94,700)

    The income tax rate structure for individuals, trusts, and estates is modified to include new brackets and adjustments for income levels.

  • Arkansas Code § 26-51-205(a)

    (6) For tax years beginning on or after January 1, 2027, every corporation organized under the laws of this state shall pay annually an income tax with respect to carrying on or doing business on the entire net income of the corporation, as now defined by the laws of this state, received by the corporation during the income year, on the following basis: (A) On the first three thousand dollars ($3,000) of net income or any part thereof, one percent (1%); (B) On the next three thousand dollars ($3,000) of net income or any part thereof, two percent (2%); (C) On the next five thousand dollars ($5,000) of net income or any part thereof, three percent (3%); and (D) On net income exceeding eleven thousand dollars ($11,000), four and one-tenths percent (4.1%).

    Introduces a new income tax rate structure for domestic corporations based on net income.

  • Arkansas Code § 26-51-205(b)

    (6) For tax years beginning on or after January 1, 2027, every foreign corporation doing business within the jurisdiction of this state shall pay annually an income tax on the proportion of its entire net income as now defined by the income tax laws of this state, on the following basis: (A) On the first three thousand dollars ($3,000) of net income or any part thereof, one percent (1%); (B) On the next three thousand dollars ($3,000) of net income or any part thereof, two percent (2%); (C) On the next five thousand dollars ($5,000) of net income or any part thereof, three percent (3%); and (D) On net income exceeding eleven thousand dollars ($11,000), four and one-tenths percent (4.1%).

    Establishes a new income tax rate structure for foreign corporations based on net income.

Action History

  1. Notification that SB1 is now Act 2

  2. DELIVERED TO GOVERNOR.

  3. Reported correctly enrolled and ordered delivered to the Governor.

  4. ORDERED ENROLLED

  5. Returned from the House as passed.

  6. Returned to the Senate as passed.

  7. Read the third time and passed and ordered transmitted to the Senate.

  8. Returned by the Committee Do Pass

  9. Read the first time, rules suspended, read the second time and referred to the Committee on REVENUE & TAXATION- HOUSE

  10. RECEIVED FROM THE SENATE

  11. Ordered immediately transmitted to the House.

  12. Read the third time and passed.

  13. Returned by the Committee, with the recommendation that it Do Pass

  14. Read first time, rules suspended, read second time, referred to REVENUE & TAX - SENATE

  15. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 28 co-sponsors · 108 not signed on

Sponsors (2)

Co-sponsors (28)

Not signed on (108)

108 members have not signed on to this bill.

Show all 108 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 1?
SB 1 is sponsored by Dave Wallace, Dan Sullivan, Matt Stone, Terry Rice, Jim Petty, Clint Penzo, John Payton, Matt McKee, Bryan King, Mark Johnson, Blake Johnson, Missy Irvin, Ricky Hill, Jimmy Hickey, Jr, Bart Hester, Kim Hammer, Ben Gilmore, Scott Flippo, Jane English, Jim Dotson, Tyler Dees, Breanne Davis, Steve Crowell, Alan Clark, Ronald Caldwell, Joshua Bryant, Justin Boyd, Les D. Eaves, Jonathan Dismang, and Brad Simon.
What is the current status of SB 1?
This bill has been enacted into law. Introduced April 30, 2026. Enacted.
Where can I track SB 1?
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