How Much Is Property Tax in Arkansas?

Property taxes in Arkansas are a significant revenue source for local governments, supporting essential public services. These taxes are levied on both real property, such as land and structures, and tangible personal property, including vehicles and other movable assets. The amount of property tax an individual owes depends on factors specific to the property’s location and characteristics. Property taxes primarily fund school districts, county and city operations, roads, public safety, and various community services.

Understanding Arkansas Property Tax Calculation

Property tax calculation in Arkansas involves two primary components: the assessed value and the local millage rate. The county assessor determines the assessed value, which is consistently set at 20% of the property’s appraised market value. This appraised value reflects what the property would likely sell for on the open market. The county assessor estimates the market value of all property within the county annually.

Once the assessed value is established, it is multiplied by the millage rate. A “mill” represents $1 per $1,000 of assessed value. Millage rates are not uniform statewide; they are set by various local taxing entities, including county governments, city councils, and school districts. Each entity determines its millage rate based on budgetary needs, and these rates can vary significantly by location.

The basic formula for calculating property tax is: (Appraised Value × 20%) × Millage Rate = Property Tax. For example, if a property has an appraised market value of $100,000, its assessed value would be $20,000 ($100,000 × 20%). This assessed value then forms the basis for applying the millage rate to determine the tax liability. This system ensures property taxes are based on a standardized percentage of market value.

Determining Your Property Tax Bill

To determine a property tax bill, taxpayers must identify the millage rates applicable to their property. These rates are localized and can be obtained from county assessor’s office websites or county tax collector’s offices. Millage rates vary depending on the specific city, county, and school district where the property is located.

Property owners can access their property’s assessed value information through the county assessor’s office. The county assessor determines the appraised value of both real property (land, buildings, mobile homes) and personal property (movable items like cars, boats, and recreational vehicles). Both types of property are subject to taxation in Arkansas, with separate assessments for each.

Consider a hypothetical example: a property with an appraised market value of $150,000 has an assessed value of $30,000 ($150,000 × 20%). If the combined millage rate for that location is 50 mills (0.050), the annual property tax would be $1,500 ($30,000 × 0.050). The taxable value of a homestead property cannot increase by more than 5% per year due to reappraisal, while other real property is capped at a 10% annual increase.

Property Tax Relief and Exemptions

Arkansas offers several property tax relief programs for eligible homeowners. The Homestead Tax Credit provides a credit of up to $425 per year for property tax bills, increasing to $500 for 2025 tax bills. To qualify, the property must be the homeowner’s primary residence, and owners can claim only one homestead tax credit annually. This credit applies directly to the real property tax owed on the homestead.

An additional exemption is available for senior citizens aged 65 or older and disabled individuals. Homeowners eligible for the homestead tax credit who are also 65 or older or disabled (as defined by Social Security Administration standards) may qualify. This exemption prevents the taxable value of their primary residence from increasing due to reappraisals. This “freeze” applies to the taxable value, not the tax amount, which can still change if millage rates are adjusted.

To receive these exemptions, taxpayers must apply for them, typically through their county assessor’s office. Specific deadlines exist for submitting applications. Homeowners should contact their local assessor’s office for instructions and required documentation. Providing proof of age or disability may be necessary for the senior citizen/disabled person exemption.

Payment and Collection Process

Property taxes in Arkansas are due and payable between March 1 and October 15 of the year following the tax year. For instance, taxes for the 2024 tax year become due in 2025. It is the taxpayer’s responsibility to ensure timely payment, even if a tax statement is not received.

Payments are made to the county tax collector’s office. Payment methods include in-person at the county courthouse, mailing a check or money order, or using online payment portals. Some counties may accept partial payments on current taxes before the October 15 deadline.

Failure to pay property taxes by the October 15 deadline results in delinquency and accrual of penalties and interest. A 10% penalty is applied to delinquent taxes. If taxes remain unpaid, the property may be forfeited to the state and sold at a tax sale by the Commissioner of State Lands to recover the unpaid amounts.