How Much Are Property Taxes in Arkansas?

Property taxes in Arkansas represent a primary funding mechanism for local government services, including public schools, county operations, and municipal functions. These taxes are levied annually on both real estate, such as land and buildings, and personal property, which encompasses items like vehicles, boats, and other tangible assets. Understanding how these taxes are determined and collected is important for property owners in the state.

Property Assessment in Arkansas

Property valuation for tax purposes in Arkansas begins with the county assessor’s office, which determines the market value of real and personal property within its jurisdiction. For tax calculation, assessed value is 20% of appraised market value.

Real property undergoes a cyclical reappraisal, occurring every three, four, or five years, depending on the growth in property values within a county. Assessors review property characteristics and market conditions to establish current market values. While market values may fluctuate, increases in the taxable assessed value are capped annually due to reappraisal, typically at 5% for homesteads and 10% for other real property. Property owners who believe their assessment is inaccurate can discuss it with the county assessor’s office. Formal appeals can be filed with the County Board of Equalization, with a common deadline for hearings being the third Monday in August.

Calculating Your Property Tax Bill

After a property’s assessed value is determined, the actual tax bill is calculated using local millage rates. Millage rates are set by various local taxing entities, including county governments, city councils, school districts, and special improvement districts. A mill represents one-tenth of a cent, or $1 of tax for every $1,000 of assessed value.

To calculate the property tax, the assessed value of a property is multiplied by the combined millage rate applicable to its location. For example, if a home has an assessed value of $20,000 and the total millage rate for its area is 50 mills, the property tax would be $1,000 ($20,000 x 0.050). The total millage rate applied to a property is the sum of all individual millage rates levied by local taxing authorities providing services to that area. This calculation yields the tax due before exemptions or credits.

Property Tax Relief and Exemptions

Arkansas offers several programs that can reduce a property owner’s tax liability. The homestead tax credit provides a reduction for an owner’s primary residence. Homeowners may receive a credit of up to $425 annually, increasing to $500 for 2025 tax bills. To claim this credit, property owners apply with their county assessor’s office, typically by October 15th.

Disabled veterans may qualify for a full exemption from state property taxes on their homestead and personal property. This exemption applies to veterans with a 100% service-connected disability rating from the Department of Veterans Affairs or who receive special monthly compensation for specific conditions like loss of limbs or total blindness. Surviving spouses and minor dependent children of qualifying disabled veterans may also be eligible. Homeowners 65 or older or disabled may be eligible to have the taxable assessed value of their homestead “frozen,” preventing future increases due to reappraisal.

Payment and Delinquency

Property tax bills are typically mailed to owners by July 1st each year. Property taxes in Arkansas are paid one year in arrears; taxes for a given year are collected the following year. The payment period runs from March 1st to October 15th. Payments can be made online, by mail, or in person at the county collector’s office.

Failure to pay property taxes by the October 15th deadline results in penalties. A 10% penalty is added to the unpaid tax after this date. Interest accrues on delinquent real estate taxes at 10% per annum, calculated daily. Persistent non-payment can lead to delinquency, and the property may be forfeited to the state and offered for sale by the Commissioner of State Lands to recover unpaid taxes.