Arkansas Crypto Tax Calculator
We built this free crypto tax calculator for residents of Arkansas who want to check calculations quickly. Our calculator is for informational purposes only. Please consult a CPA or tax professional. Use cryptocurrency tax accounting software if you have lots of trades.
Arkansas offers a 50% deduction on long-term capital gains (assets held over 1 year). To calculate Federal taxes, please use our USA tax calculator.
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Calculate for freeHow to Use the Tax Calculator
- Enter your total income: This should be your annual income excluding any capital gains from crypto.
- Enter the Total Cost of First Purchase: This is the initial amount you spent to buy the cryptocurrency.
- Enter the Amount of Sale: This is the total amount you received when you sold the cryptocurrency.
- Select your Holding Period: Choose whether you held the asset for more or less than one year.
- Select your Filing Status: Choose from the dropdown based on your tax filing status.
- Click on the Calculate Tax button to get the estimated tax on your capital gains.
Note: This is an estimation and may not reflect your actual tax liability. Always consult with a tax professional when filing your taxes.
Arkansas State Tax Brackets (2024)
| Single Filers | Married Filing Jointly | Tax Rate |
|---|---|---|
| $5,100 to $10,599 | $5,300 to $10,599 | 2% |
| $10,600 to $15,099 | $10,600 to $15,099 | 3% |
| $15,100 to $24,300 | $15,100 to $24,300 | 3.4% |
| $24,300 or more | $24,300 or more | 3.9% |
Cryptocurrency Taxation in Arkansas
Arkansas Crypto Tax Overview
Arkansas follows federal guidelines in treating cryptocurrency as property for tax purposes, but has some state-specific considerations:
- 50% Capital Gains Deduction: Arkansas is one of the few states offering significant tax breaks on long-term crypto gains through its 50% deduction policy.
- Mining Income: Cryptocurrency mining income is treated as self-employment income in Arkansas and is subject to the state's regular income tax rates.
- No Special Crypto Regulations: Unlike some states, Arkansas hasn't implemented specific cryptocurrency regulations, defaulting to federal guidelines for most situations.
Recent Developments
Arkansas has taken steps to become more crypto-friendly:
- 2021 Legislation: Arkansas passed legislation clarifying that peer-to-peer crypto transactions are exempt from money transmission laws.
- Business Adoption: Several Arkansas businesses now accept cryptocurrency payments, though these transactions still trigger taxable events.
- State Recognition: The Arkansas Securities Department has provided guidance recognizing cryptocurrency as a legitimate investment vehicle.
Common Arkansas Crypto Tax Situations
Mining Operations
Crypto mining income must be reported as self-employment income. Miners can deduct electricity costs and equipment depreciation from their Arkansas state taxes.
Trading Between Cryptocurrencies
Like federal law, Arkansas treats crypto-to-crypto trades as taxable events. However, if held long-term, only 50% of the gains are taxable at the state level.
NFT Transactions
Arkansas treats NFT sales similar to other crypto transactions. Artists and creators must report NFT sales as income, while traders can benefit from the 50% long-term gains deduction.
Tax Planning Considerations
- Consider holding crypto assets for more than one year to take advantage of the 50% capital gains deduction.
- Keep detailed records of acquisition dates and costs to properly calculate holding periods.
- Document mining expenses and equipment costs for potential deductions.
- Consider consulting with an Arkansas-based tax professional familiar with both state tax law and cryptocurrency.