Arkansas Mileage Deduction 2026

Arkansas has a top income tax rate of 3.9%. Your mileage deduction reduces both your federal and Arkansas state taxes. At 15,000 business miles, you save roughly $424 in state taxes on top of about $4,056 federal. That is about $4,480 total.

One thing to note: Arkansas is one of the few states that lets you choose between standard and itemized deductions on your state return regardless of what you choose on your federal return. This flexibility can be useful for self-employed filers whose state and federal situations differ.

Arkansas also has a specific rule requiring employers to reimburse traveling expenses for traveling salespeople, though this does not extend to other workers.

How to File

Deduct on federal Schedule C, Line 9 at 72.5¢/mile. Arkansas uses your federal adjusted gross income as the starting point, so the mileage deduction flows through to your state return. Keep a mileage log with the date, destination, purpose, and miles for each trip.

FAQ

Does my mileage deduction reduce Arkansas state taxes?

Yes. Arkansas starts with your federal adjusted gross income. Your Schedule C mileage deduction reduces that number, which directly reduces your state tax at the 3.9% top rate.

Does Arkansas require mileage reimbursement?

Only for traveling salespeople. All other workers: no state mandate.

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