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Casualty and Theft Losses in Arkansas 2026

Calculate your casualty and theft losses tax savings in Arkansas. With Arkansas's 4.7% top state tax rate, your combined savings are higher.

Arkansas Tax Overview

State Income Tax
4.7%
progressive
Sales Tax
6.5%
avg combined: 9.44%
Property Tax Rate
0.62%
Median Income
$52,528

Top rate reduced to 4.7%. 50% capital gains exclusion on Arkansas assets. Highest combined sales taxes.

Arkansas Income Tax Brackets (Single)

0%
$0 - $4,400
2%
$4,400 - $8,800
3%
$8,800 - $13,100
3.4%
$13,100 - $22,200
4.4%
$22,200 - $38,500
4.7%
$38,500 +
Your bracket
$1,335
Est. Total Savings
No Limit
Max Deduction
Itemized
Deduction Type
26.7%
Combined Tax Rate

Casualty and Theft Losses Savings Calculator for Arkansas

$
$

Federal Savings

$1,100

22% bracket

Arkansas State

$235

4.7% rate

Total Savings

$1,335

26.7% combined

At a 26.7% combined tax rate in Arkansas, every $1,000 in deductions saves you $267 in taxes.

Savings by Tax Bracket in Arkansas

10%
$735
12%
$835
22%
$1,335
24%
$1,435
32%
$1,835
35%
$1,985
37%
$2,085

Includes 4.7% Arkansas state tax on top of federal savings.

Eligibility Requirements

Available to individuals who suffer losses from federally declared disasters. Since 2018, personal casualty losses are only deductible if attributable to a federally declared disaster.

  • 1Loss must result from a federally declared disaster
  • 2Must reduce loss by insurance reimbursements
  • 3Each casualty loss must exceed $100
  • 4Total losses must exceed 10% of AGI

Arkansas residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 4.7%.

Common Mistakes to Avoid

  • !Claiming losses not from federally declared disasters
  • !Not filing insurance claims before taking deduction
  • !Incorrect valuation of damaged property
  • !Missing the deadline to amend returns for disaster losses
  • !Forgetting to claim the deduction on your Arkansas state return (missing up to 4.7% additional savings)

Arkansas Filing Tips

Maximize the 50% capital gains exclusion on Arkansas-based business or property sales. The state standard deduction is low ($2,340 single), so itemizing may be worthwhile.

Required Tax Forms

Form 4684Schedule A

File these forms with your federal tax return to claim the casualty and theft losses. Arkansas may require additional state-specific forms.

Other Tax Deductions in Arkansas

Alimony Payments (Pre-2019 Agreements)

Personal

~$21,845
est. savings

Casualty and Theft Loss (Federal Disaster)

Personal

~$18,205
est. savings

Alimony Paid (pre-2019)

Personal

~$6,068
est. savings

Mortgage Interest Deduction

Housing

~$4,248
est. savings

Property Tax Deduction

Housing

~$2,670
est. savings

Home Office Deduction

Housing

~$1,456
est. savings

Home Energy Tax Credit

Housing

~$1,800
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Casualty and Theft Losses in Neighboring States

Missouri

4.8% top rate (progressive)

~$3,655
+2,320 vs Arkansas

Tennessee

No state income tax

~$3,000
+1,665 vs Arkansas

Mississippi

4.7% top rate (flat)

~$3,641
+2,306 vs Arkansas

Louisiana

3% top rate (flat)

~$3,409
+2,074 vs Arkansas

Texas

No state income tax

~$3,000
+1,665 vs Arkansas

Oklahoma

4.75% top rate (progressive)

~$3,648
+2,313 vs Arkansas

Tax Calculators for Arkansas Cities

Little RockFayettevilleFort SmithSpringdaleJonesboroRogersConwayNorth Little RockBentonville

Calculate Your Full Tax Savings in Arkansas

Use our free tax calculators to optimize your entire tax return for Arkansas.

Income Tax CalculatorArkansas Income TaxFull Casualty and Theft Losses Guide

Frequently Asked Questions

How much can I save with the Casualty and Theft Losses in Arkansas?

In Arkansas, the casualty and theft losses can save you an estimated $1,335 per year on a $5,000 deduction. This includes $1,100 in federal tax savings and $235 in Arkansas state tax savings at the 4.7% marginal rate. The national average savings is $3,000/year.

What is the Arkansas state income tax rate?

Arkansas has a progressive income tax system with a top rate of 4.7%. Top rate reduced to 4.7%. 50% capital gains exclusion on Arkansas assets. Highest combined sales taxes.

Who qualifies for the Casualty and Theft Losses in Arkansas?

Available to individuals who suffer losses from federally declared disasters. Since 2018, personal casualty losses are only deductible if attributable to a federally declared disaster.. The eligibility requirements are the same whether you live in Arkansas or another state, as this is a federal tax deduction. However, your total savings will vary based on Arkansas's 4.7% top state tax rate.

What tax forms do I need to claim the Casualty and Theft Losses in Arkansas?

To claim the casualty and theft losses, you need to file Form 4684 and Schedule A with your federal return. Arkansas residents should also check if the state allows this deduction on their state return for additional savings of up to 4.7%. Filing status affects your deduction limits and tax bracket.

Is the Casualty and Theft Losses better in Arkansas than in states without income tax?

Yes, Arkansas residents benefit more because the state's 4.7% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 26.7% means more savings per dollar deducted.

What is the standard deduction in Arkansas for 2026?

Arkansas's standard deduction is $2,340 for single filers and $4,680 for married filing jointly. Maximize the 50% capital gains exclusion on Arkansas-based business or property sales. The state standard deduction is low ($2,340 single), so itemizing may be worthwhile.

Related Calculators

Alimony Payments (Pre-2019 Agreements) in Arkansas

Avg savings: $18,000/year

Casualty and Theft Loss (Federal Disaster) in Arkansas

Avg savings: $15,000/year

Alimony Paid (pre-2019) in Arkansas

Avg savings: $5,000/year

Mortgage Interest Deduction in Arkansas

Avg savings: $3,500/year

Property Tax Deduction in Arkansas

Avg savings: $2,200/year

Home Office Deduction in Arkansas

Avg savings: $1,200/year