Side-by-side at $1,000,000 qualified income, 37% bracket
| Field | Arkansas | Oklahoma |
|---|---|---|
| Statute | Ark. Code Title 26, Chapter 65 (Elective Pass-Through Entity Tax); Act 362 of 2021; Act 532 of 2023 | 68 Okla. Stat. §§ 2355.1P-1 through 2355.1P-4 (Entity Tax Equity Act of 2019); HB 3559 amended § 2355.1P-4 |
| Election deadline | PTE tax due on or before the 15th day of the 4th month after end of taxable year (April 15 for calendar-year filers). Election made by members holding 50% or more of the PTE. | Election made by filing Form 586 OR by making the election on Form 514 (partnership) or 512-S (S corp). Election may be made any time during the tax year or 2 months and 15 days after end of tax year. Beginning tax year 2024, election may be made by filing a timely return (with extensions). |
| Rate | 3.90% flat | 4.75% flat |
| Owner credit | refundable | refundable |
| Composite interaction | stacks | forced-out |
| §199A QBI reduction | Yes | Yes |
| Last verified | 2026-05-12 | 2026-05-11 |
Reference federal-arbitrage computation
Both scenarios assume $1,000,000 qualified net income, a 37% owner federal bracket, and no apportionment. Both reduce §199A QBI base proportionally; net benefit shown is the federal SALT-arbitrage less the rough QBI offset (~20% × bracket × entity tax).
Entity-level tax: $39,000. Net of QBI offset (~$2,886): $11,544.
Entity-level tax: $47,500. Net of QBI offset (~$3,515): $14,060.
Why owners with K-1 income across these two states care
Arkansas and Oklahoma interact in three ways that matter to a multi-state K-1 holder: (1) independent elections — each state's PTET is its own election with its own deadline and form, so a missed AR deadline does not affect OK; (2) aggregate federal deduction — the entity-level tax paid to BOTH states is deductible at the federal entity level under IRS Notice 2020-75, so the federal arbitrage compounds; (3) composite-return interaction may differ — see each state's row above.
Run the multi-state picker pre-filled with both jurisdictions: