Updated October 5, 2026. Quick answer: No. Arkansas has no gift tax for a gift made in 2026. The Department of Finance and Administration’s estate tax return instructions say: “Arkansas has no inheritance or gift tax.” The instructions are for a 2004 form, so this page also relies on CMG’s own estate and inheritance pages for today’s death-tax picture. The federal annual exclusion is $19,000 per recipient for 2026.
Putting a loan in writing? The interest limit, the signing rules and the time limit to sue, from the state’s own statutes: Arkansas promissory note.
Arkansas gift tax at a glance
| Item | What the documents say |
|---|---|
| State gift tax | None |
| What the documents say | The Department of Finance and Administration’s estate tax return instructions say Arkansas has no inheritance or gift tax (2004 form) |
| State estate or inheritance tax | Not stated in the document read, which covers deaths in 2004 only; see the estate tax page |
| Federal annual exclusion, 2026 | $19,000 per recipient |
| Federal basic exclusion amount, 2026 | $15,000,000 |
| Source | Arkansas Department of Finance and Administration; IRS Revenue Procedure 2025-32 |
What the Arkansas documents say
The statement is item VII of the general information that accompanies Form AR321, the Arkansas Estate Tax Return for decedents dying after December 31, 2003 and before January 1, 2005. The same instructions explain that “the State of Arkansas levies an estate tax on estates” in the amount of the federal credit, and that “No Estate Tax Return need be filed with the Director” where no federal credit is allowed.
What applies to a gift from an Arkansas resident
Federal gift tax is separate and applies wherever you live. The IRS says gifts “not more than the annual exclusion for the calendar year” are generally not taxable gifts, and Revenue Procedure 2025-32 sets the 2026 annual exclusion at “the first $19,000 of gifts to any person”. The same procedure puts the basic exclusion amount at “$15,000,000 for calendar year 2026”. The IRS adds that “The donor is generally responsible for paying the gift tax”.
An illustration: a $50,000 gift to one child in 2026 is $31,000 above the federal annual exclusion, and Arkansas adds no gift tax of its own on top of that. CMG’s gift tax limit and Form 709 who must file pages explain the federal side, and how Arkansas taxes 401(k) and IRA withdrawals covers a gift of retirement money.
What the documents do not say
- The only Department document read is the 2004 estate tax return and its instructions. No newer Arkansas document read repeats the gift tax statement, and the documents read do not say what Arkansas’s estate tax position is today.
Common mistakes
- Looking for an Arkansas gift tax return; the Department’s instructions say the state has no gift tax.
- Assuming the state answer settles the federal one, or the answer for a gift of property located in another state.
Related: the federal gift tax limit, gift tax by state, Arkansas estate tax, and Arkansas probate cost.
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Answer againSources
- Arkansas Estate Tax Return AR321 (2004) with General Information: https://dfa.arkansas.gov/wp-content/uploads/AR321_2004.pdf
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- Frequently asked questions on gift taxes (Internal Revenue Service): https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes
Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.