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Home Energy Tax Credit in Arkansas 2026

Calculate your home energy tax credit 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
$3,200
Est. Total Savings
$3,200
Max Deduction
Tax Credit
Deduction Type
26.7%
Combined Tax Rate

Home Energy Tax Credit Savings Calculator for Arkansas

$
$

Federal Savings

$3,200

22% bracket

Arkansas State

$0

4.7% rate

Total Savings

$3,200

26.7% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in Arkansas

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

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

Eligibility Requirements

Homeowners who install energy-efficient improvements

  • 1Must be primary residence
  • 2Qualifying improvements only
  • 3Keep receipts

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 for rental properties
  • !Missing manufacturer certifications
  • !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 5695

File these forms with your federal tax return to claim the home energy tax credit. Arkansas may require additional state-specific forms.

Other Tax Deductions in Arkansas

Mortgage Interest Deduction

Housing

~$4,248
est. savings

Property Tax Deduction

Housing

~$2,670
est. savings

Home Office Deduction

Housing

~$1,456
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$4,855
est. savings

PMI Premium Deduction

Housing

~$1,335
est. savings

Mortgage Points Deduction

Housing

~$2,427
est. savings

Casualty & Theft Loss Deduction

Housing

~$6,068
est. savings

Home Energy Tax Credit in Neighboring States

Missouri

4.8% top rate (progressive)

~$1,800
-1,400 vs Arkansas

Tennessee

No state income tax

~$1,800
-1,400 vs Arkansas

Mississippi

4.7% top rate (flat)

~$1,800
-1,400 vs Arkansas

Louisiana

3% top rate (flat)

~$1,800
-1,400 vs Arkansas

Texas

No state income tax

~$1,800
-1,400 vs Arkansas

Oklahoma

4.75% top rate (progressive)

~$1,800
-1,400 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 Home Energy Tax Credit Guide

Frequently Asked Questions

How much can I save with the Home Energy Tax Credit in Arkansas?

In Arkansas, the home energy tax credit can save you an estimated $3,200 per year on a $5,000 deduction. This includes $3,200 in federal tax savings and $0 in Arkansas state tax savings at the 4.7% marginal rate. The national average savings is $1,800/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 Home Energy Tax Credit in Arkansas?

Homeowners who install energy-efficient improvements. The eligibility requirements are the same whether you live in Arkansas or another state, as this is a federal tax credit. 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 Home Energy Tax Credit in Arkansas?

To claim the home energy tax credit, you need to file Form 5695 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 Home Energy Tax Credit 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

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

Residential Solar Tax Credit in Arkansas

Avg savings: $7,500/year

Military Moving Expenses in Arkansas

Avg savings: $4,000/year

PMI Premium Deduction in Arkansas

Avg savings: $1,100/year