LITTLE ROCK, Ark. (April 29, 2026) – Arkansas was ranked among the top states for overall economic outlook for the second consecutive year in a recent study.
The American Legislative Exchange Council ranked Arkansas as the #6 state for best economic outlook on the 2026 Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index. Now in its 19th edition, the ALEC-Laffer State Economic Competitiveness Index is a ranking and forecast based on each U.S. state’s standing in 15 policy variables.
“Arkansas is rising in the ranks because we’ve stayed focused on what works: making growth a priority,” said Governor Sanders. “Since taking office, we’ve gone from 16th to 6th in national economic outlook, the highest in our state’s history. That progress is no accident; it’s the result of low-tax, pro-growth policies that are delivering real results for the people of our state—and I’m excited to see us keep climbing to number one.”
“Arkansas is on the rise, and the latest Rich States, Poor States index clearly shows this. As we lower taxes and help businesses succeed in our state, we are becoming more competitive, and we’re positioning Arkansas for an even brighter future,” said Secretary of Commerce Hugh McDonald. “Governor Sanders and the Arkansas General Assembly have provided steady, common-sense leadership that has pushed the Natural State forward. We’ve gone from 23rd to 6th since 2021 and we look forward to continue driving to the top of the Rich States, Poor States list in the years to come.”
In addition to the overall economic outlook ranking, Arkansas performed well in many of the individual policy categories. Arkansas was ranked #1 in the Estate/Inheritance Tax and Right-to-Work State categories. The state was also ranked #2 for Property Tax Burden, #2 for Average Workers’ Compensation Costs, #3 for Recently Legislated Tax Changes, #8 for Top Marginal Corporate Income Tax Rate, and #9 for Debt Service as a Share of Tax Revenue.
Arkansas’ Rich States, Poor States ranking reflects the changes made during the Governor’s leadership, such as lowering the state income tax by more than 20%, making significant investments in education and workforce development, and supporting economic development efforts.
The American Legislative Exchange Council evaluated policy variables that are influenced directly by state lawmakers during the legislative process as part of the ranking process. The policy variables used as part of the ALEC-Laffer State Economic Competitiveness Index ranking include Top Marginal Personal Income Tax Rate, Top Marginal Corporate Income Tax Rate, Personal Income Tax Progressivity, Property Tax Burden, Sales Tax Burden, Remaining Tax Burden, Estate/Inheritance Tax, Recently Legislated Tax Changes, Debt Service as a Share of Tax Revenue, Public Employees Per 10,000 of Population, State Liability System Costs, State Minimum Wage, Average Workers’ Compensation Costs, Right-to-Work State, and Tax Expenditure Limits.