How is property tax calculated in Arkansas?

Arkansas assesses real property at 20% of its market value, then applies the local millage rate to that assessed value. One mill equals $1 of tax per $1,000 of assessed value, so a 50-mill rate is 5% of assessed value.

What is the Arkansas homestead property tax credit?

Owner-occupied primary residences qualify for a homestead credit that reduces the property tax bill by up to $425 per year (raised from $375 in recent years). This calculator subtracts the credit when you mark the home as your primary residence.

What is the assessment ratio in Arkansas?

Arkansas uses a uniform 20% assessment ratio for all real and personal property statewide. A $200,000 home has an assessed value of $40,000, which is the base the millage is applied to.

Why do property tax rates differ by county in Arkansas?

Millage rates are set locally by counties, cities, and school districts. School millage is usually the largest component. Total rates commonly range from about 35 to 70 mills depending on your taxing districts.

Does Arkansas cap how much my assessment can rise?

Yes. Amendment 79 limits annual increases in assessed value on homestead property to 5% per year (10% for non-homestead and other property) until the property sells or is improved, which can keep your taxable value below current market value.

Arkansas Property Tax Estimator

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Arkansas property tax is built on a uniform 20 percent assessment ratio and a local millage rate. This estimator assesses your home, applies your county’s mills, and subtracts the homestead credit to project your annual bill.

How it works

Arkansas assesses all real property at 20 percent of market value. The millage rate is then applied to that assessed value, where one mill equals one dollar of tax per one thousand dollars of assessed value:

assessed value = market value × 0.20
gross tax      = assessed value × (mills ÷ 1000)
net tax        = gross tax − homestead credit (if primary residence)

The homestead property tax credit reduces the bill by up to 425 dollars per year for owner-occupied primary residences.

Example

A $250,000 home is assessed at 20% = $50,000. With a 50-mill rate, the gross tax is $50,000 × 0.050 = $2,500. If it is your primary residence, the $425 homestead credit brings the net bill to about $2,075 per year.

Notes

Total millage varies widely by county, city, and school district, so use the exact rate from your tax statement for the most accurate figure. Amendment 79 caps annual homestead assessment increases at 5 percent, which can keep your taxable value below current market value. This estimator excludes special improvement-district levies and personal-property tax; verify with your county assessor or collector.