Arkansas Revenue Collections Exceed Expectations in March

State's general revenues rose 8.8% over last year, beating forecast by 8.7%

Apr. 2, 2026 at 7:19pm

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A vibrant abstract illustration using overlapping triangles and rectangles in shades of blue, red, and yellow to conceptually represent the growth in Arkansas' tax revenue collections.Arkansas' tax revenue surge in March signals a rebound in the state's economic activity.Little Rock Today

The Arkansas Department of Finance and Administration reported that the state's general revenue collections in March 2026 surpassed expectations, rising 8.8% over the previous year and exceeding the state's forecast by 8.7% or $55.5 million. The increase was driven by strong growth in sales tax collections, particularly in manufacturing and construction, as well as a $34 million year-over-year increase in individual income tax revenue.

Why it matters

Arkansas' revenue performance is an important economic indicator for the state, reflecting the overall health of the state's economy. The March results suggest Arkansas is rebounding well from the impacts of the previous month's winter weather and point to continued economic growth in key sectors like manufacturing and construction.

The details

According to the DFA's monthly general revenue report, Arkansas' total general revenues in March 2026 reached $694.6 million, which was $56.3 million or 8.8% higher than the previous year. The March totals also exceeded the state's forecast by $55.5 million, or 8.7%. DFA Secretary Jim Hudson attributed the strong performance to a rebound from February's weather-impacted results, as well as growth in sales tax collections from manufacturing and construction, and a $34 million year-over-year increase in individual income tax revenue.

  • The DFA released its monthly general revenue report for March 2026 on Thursday, April 2, 2026.

The players

Jim Hudson

Secretary of the Arkansas Department of Finance and Administration.

Arkansas Department of Finance and Administration

The state agency responsible for managing Arkansas' finances and revenue collections.

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What they’re saying

“March revenue collection surpassed forecast by more than 12.5%, reflecting a rebound from February results that were impacted by winter weather.”

— Jim Hudson, Secretary, Arkansas Department of Finance and Administration

“In addition, individual income tax collection increased by $34 million year to year. As we move into our last quarter of the fiscal year, we remain confident in our forecast, with our year-to-date results ahead of forecast by over $61 million.”

— Jim Hudson, Secretary, Arkansas Department of Finance and Administration

What’s next

The Arkansas Department of Finance and Administration will continue to monitor the state's revenue collections and economic indicators as it prepares its forecast for the remainder of the fiscal year.

The takeaway

Arkansas' strong revenue performance in March, driven by growth in key sectors like manufacturing, construction, and individual income taxes, suggests the state's economy is rebounding well from the previous month's winter weather impacts. This positive trend bodes well for the state's fiscal outlook as it enters the final quarter of the fiscal year.