Arkansas has no single statewide property tax rate. The county assessor values each property, the assessed value is 20% of market value, and the local taxing units (school districts, counties, cities and others) set the millage that turns that value into a bill. That is why two identical houses in different districts can pay very different amounts.
This guide explains how the assessment works, who sets the millage, what the homestead credit and the Amendment 79 limits do, the age 65 or disabled freeze, the payment date and how to appeal. It uses the Arkansas Department of Finance and Administration (DFA) Assessment Coordination Division pages, its 2025 annual report and the text of Act 174 of the 2026 Fiscal Session, all read on 2 November 2026. We do not publish a statewide average rate because the state pages we read do not state one; check your own millage with your county.
The DFA annual report says that since at least 1955 county assessors have generally calculated taxes on twenty percent of the current market value of the property, then multiplied the assessed value by the millage rate in that taxing district. The assessor assesses real property automatically each year to the owner of record, and the owner does not need to act unless something changes. The assessor should be told about new buildings, additions or a change of use, for example from owner-occupied to rental.
During a reappraisal, which DFA says runs on a 3, 4 or 5 year cycle, each property is visited by the assessor or their representative and valued using one or more of the three approaches to value (sales comparison, cost or income).
The process spans two years. The first (the assessment year) establishes the assessed values and millage; the second (the collection year) is when the taxes are collected and distributed to the cities, counties and school districts.
Millage is not one statewide number. DFA's report says certain millage rates are established by city councils, quorum courts and other taxing entities, while others, such as for road repairs or library construction, are voted on by the electors in that district. Schools are required to carry 25 mils by state law, and mils above that must be voted on by the school district's electors. DFA's Millage Book lists the 2025 Millage Report, which applies to 2026 collections, with earlier years for 2025 and 2024 collections.
What this means for you: the assessor decides the value, but the district you live in decides the rate. Your bill depends on your county, school district, city and any special districts. The state pages we read do not publish a single typical rate, so use your county assessor or collector for your own total.
The homestead property tax credit is a statutory credit that reduces the real property taxes assessed on a homestead. Act 174 of the 2026 Fiscal Session (House Bill 1103) sets it at $675, effective for assessment years beginning on or after January 1, 2026. Before that, DFA's relief page says the credit was up to $500 per year, with an increase to $600 authorised beginning with the 2026 tax bills. The DFA relief page still showed the $500 and $600 figures when we read it, so when the pages disagree the $675 in the Act is the current law we found; confirm the amount on your bill with the county assessor.
The Act amends the existing statutory $600 to $675 (Arkansas Code 26-26-1118(a)(1)(A)). Because Arkansas taxes are collected in the year after the assessment year, the credit for the 2026 assessment year would appear on the bill payable by October 15, 2027 (our reading of the two-year cycle described in the DFA annual report; confirm with your county).
| Item | What the sources say |
|---|---|
| What is a homestead | The dwelling of a person used as their principal place of residence; it may be held in a revocable or irrevocable trust |
| Who counts as a homeowner | The record owner, a buyer under a recorded sales contract, or a person holding a recorded life estate |
| How many credits | One homestead credit per owner each year |
| How to claim | Apply with the county assessor's office; DFA's calendar shows owners registering a homestead with the assessor through October 15 |
DFA states that Amendment 79 limits how much the taxable assessed value of real property can increase as a result of a county-wide reappraisal. The taxable value of a homestead can increase only 5% per year until the property reaches full assessed value; the taxable value of all other real property (commercial, agricultural and vacant) can increase only 10% per year. The caps do not apply to newly discovered real property, new construction or substantial improvements, which are assessed at full value. DFA defines a substantial improvement as renovation, reconstruction and refurbishment that adds 25% or more to the value of the property.
The cap limits the taxable value, not the tax bill: DFA notes that homestead taxes can still rise or fall if local millage changes.
Homeowners who qualify for the homestead credit and are 65 or older, or disabled, may be eligible to have the taxable assessed value of their homestead frozen at its value at the next assessment date after they turn 65 or become disabled. A person aged 65 or older, or disabled, who buys a homestead can have it frozen at the next assessment date after the purchase. The owner must apply with the county assessor's office. The freeze does not pass to a later owner of the same home, and the assessed value can still rise with new construction or substantial improvements. As with the cap, millage changes can still change the bill.
These tables are our own illustrations, not an official calculation. They assume a hypothetical 47 mills (a figure we chose; your district's millage will differ), a homestead that qualifies for the $675 credit, and tax at least as large as the credit. Assessed value is 20% of market value; tax is assessed value times mills divided by 1,000.
| Market value | Assessed value (20%) | Tax at 47 mills | Less $675 credit | Net tax |
|---|---|---|---|---|
| $100,000 | $20,000 | $940.00 | $675 | $265.00 |
| $200,000 | $40,000 | $1,880.00 | $675 | $1,205.00 |
| $300,000 | $60,000 | $2,820.00 | $675 | $2,145.00 |
| $500,000 | $100,000 | $4,700.00 | $675 | $4,025.00 |
Now a reappraisal: suppose a homestead's market value rises from $200,000 to $260,000 (+30%) and nothing else changes. Its taxable value is $40,000 and the full assessed value would be $52,000. With the 5% annual cap on the taxable value, the increase is spread over six years (rounded to the cent, constant 47 mills, our simplification of how the cap is applied):
| Year after reappraisal | Taxable value (5% cap) | Tax at 47 mills | Net of $675 credit |
|---|---|---|---|
| Year 1 | $42,000 | $1,974.00 | $1,299.00 |
| Year 2 | $44,100 | $2,072.70 | $1,397.70 |
| Year 3 | $46,305 | $2,176.34 | $1,501.34 |
| Year 4 | $48,620.25 | $2,285.15 | $1,610.15 |
| Year 5 | $51,051.26 | $2,399.41 | $1,724.41 |
| Year 6 | $52,000 (full assessed value) | $2,444.00 | $1,769.00 |
Rising millage, new construction or a further reappraisal would change these numbers.
Property taxes currently due are payable to the county collector by October 15 each year. If October 15 falls on a Saturday, Sunday or legal holiday, taxes are due the next business day.
If you disagree with your assessment, first check with your county assessor: errors in property details can often be fixed without further appeal. For more substantial appeals, DFA says the last day to schedule an appeal hearing with the County Board of Equalization is the third Monday in August (by our calendar count, August 16 in 2027). DFA's Equalization Board page also lists an Appeal to County Court form, which is a further step; ask your county about timing. Because the deadline is to schedule the hearing, do not wait until that Monday.