Relocation analysis
On these inputs, Arkansas and Colorado produce roughly the same tax burden.
- Property tax difference on a $400k home: $360/yr.
- Sales tax difference on $50k of taxable spending: $800/yr.
- Capital gains difference per $10k gain: $0.
Arkansas vs Colorado Taxes (2026)
Side-by-side comparison of income tax, property tax, sales tax, capital gains, and retirement treatment between Arkansas and Colorado for tax year 2026. Use the calculator below to estimate how much you would save (or pay) after relocating.
| Tax | Arkansas | Colorado |
|---|---|---|
| State income tax (effective) | 4.40% | 4.40% |
| Long-term capital gains | 4.40% | 4.40% |
| Property tax (effective) | 0.64% | 0.55% |
| Combined sales tax | 9.40% | 7.80% |
| Retirement income | partial-exempt | partial-exempt |
| Income system | progressive | flat |
Tax savings calculator
$
$
$
Estimated 2026 burden
Arkansas total tax
$19,722
Colorado total tax
$19,722
Arkansas state tax
$4,352
Colorado state tax
$4,352
Difference
+$0
Colorado saves you money
As % of income
0.00%
Federal tax is identical in both columns and excluded from the difference. Numbers use 2026 IRS brackets, state effective rates, and the 3.8% NIIT where applicable.
Key differences
- Arkansas: Top 4.3% corporate rate after recent cuts.
- Colorado: Flat 4.4% corporate and individual tax; TABOR caps revenue growth.
- Income system: Arkansas is progressive, Colorado is flat.
- Retirement: Arkansas — partial exempt; Colorado — partial exempt.
Recommended Tax Filing Software
Once you know what you owe, file with software built for your situation. We compare the top U.S. options below.
TurboTax
Best overall guided experience
4.7·$0 – $129 federal
- Step-by-step interview
- Live expert add-on
- W-2 + 1099 auto-import
- Pricier than competitors
H&R Block
Best for in-person backup
4.5·$0 – $115 federal
- Free in-person review
- Strong refund accuracy guarantee
- Easy import from prior software
- State filing adds up
TaxAct
Best value for self-employed
4.3·$0 – $99 federal
- Cheaper than TurboTax/H&R
- Strong Schedule C tools
- Price-lock guarantee
- Fewer guidance tooltips
FreeTaxUSA
Best truly-free federal e-file
4.6·$0 federal / $14.99 state
- Free federal filing for all forms
- Cheap state filing
- Supports complex situations
- Plainer interface
We may earn a commission from links above at no cost to you. See our Affiliate Disclosure.
Comparison FAQs
It depends on income mix. Colorado has an effective income rate of 4.40% vs Arkansas's 4.40%. Property tax (0.64% vs 0.55%) and sales tax can swing the answer.
Related resources
Get Tax Tips, Updates, and Financial Insights
One short email a month. No spam. Unsubscribe anytime.
By subscribing you agree to our Privacy Policy. We never sell your data.