$LevyIO

Charitable Driving Deduction in Arkansas 2026

Calculate your charitable driving deduction 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

Charitable Driving Deduction 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

Volunteers driving for charitable purposes

  • 114 cents per mile
  • 2Parking and tolls included
  • 3Must itemize

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

  • !Using standard business rate
  • !Not keeping mileage log
  • !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

Schedule A

File these forms with your federal tax return to claim the charitable driving deduction. Arkansas may require additional state-specific forms.

Calculate Your Full Tax Savings in Arkansas

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

Frequently Asked Questions

How much can I save with the Charitable Driving Deduction in Arkansas?

In Arkansas, the charitable driving deduction 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 $200/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 Charitable Driving Deduction in Arkansas?

Volunteers driving for charitable purposes. 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 Charitable Driving Deduction in Arkansas?

To claim the charitable driving deduction, you need to file 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 Charitable Driving Deduction 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.