Arkansas Property Tax Calculator

How this calculator works

Arkansas property tax is governed primarily by Amendment 79 to the Arkansas Constitution (ratified in November 2000, effective for the 2001 tax year) and the assessment provisions of Ark. Code § 26-26-407. Three structural features make Arkansas distinctly cheaper than its neighbors and most of the country: a 20% statutory assessment ratio, an annual 5%/10% cap on assessed-value increases, and a flat $425 Property Tax Credit on every homestead.

The math is straightforward:

• market value × 20% = uncapped assessed value (§ 26-26-407)
• min(uncapped, prior-year × 1.05) = assessed value for a principal residence (Amendment 79)
• min(uncapped, prior-year × 1.10) = assessed value for all other real property (Amendment 79)
• assessed value × millage = tax before credit
• tax before credit − $425 = tax after credit (homestead only, § 26-26-1118)
• $0 if the owner is a 100% service-connected disabled veteran (§ 26-3-306)

Everything else is determining the right millage and confirming which exemptions apply.

Arkansas's 20% assessment ratio — among the lowest in the country

Under § 26-26-407, all real property is assessed at 20% of "true and full market value" before millage is applied. That ratio is one of the lowest statutory assessment ratios in the country:

• Colorado (residential): ~6.4%
• South Carolina (owner-occupied): 4%
• Arkansas: 20% (real and personal property)
• Tennessee (residential): 25%
• Mississippi (single-family owner-occupied): 10% (then 100% for "Class I" / 15% for "Class II")
• Oklahoma: ~11% (varies 11%–13.5% by county)
• Texas, North Carolina, Virginia: 100% (no statutory ratio reduction)

A $250,000 home in Pulaski County (Little Rock) generates an assessed value of just $50,000. The 70-mill combined rate then produces a tax bill of $3,500 before the $425 credit, or $3,075 after — an effective rate of about 1.23% of market value. The same nominal millage applied at a 100% assessment ratio (as in Texas) would produce a bill of $17,500 on the same home.

Amendment 79 — the 5% / 10% assessment cap

Arkansas voters ratified Amendment 79 in November 2000 and it took effect for the 2001 tax year. The amendment caps year-over-year increases in assessed value:

• 5% per year on a principal residence ("homestead")
• 10% per year on all other real property (commercial, second homes, vacant land, investment, agricultural that does not elect use value)

The cap runs against the prior-year assessed value — not against market value or the 20%-of-market figure. Even when a county reappraisal pushes true value much higher, Amendment 79 limits how much of that increase reaches the bill in any single year. The remaining gap "phases in" over subsequent years until the capped assessed value catches up to the uncapped 20%-ratio figure.

When the cap resets. Three events reset the cap:

1. Sale or transfer of title — the new owner pays the full 20%-of-market figure in year one; the cap then starts running forward from that figure.
2. New construction — newly built improvements enter the rolls at full uncapped value the first year; subsequent years are capped.
3. Substantial improvements — additions, major renovations, and other changes to the property's characteristics that increase market value.

Routine reappraisal does NOT reset the cap. A countywide reappraisal raises the true-value figure to current market, but Amendment 79 still binds the year-over-year assessed-value increase to the 5%/10% ceiling.

Worked example — Amendment 79 cap binding on a $400K Little Rock home

A $400,000 home in Little Rock (Pulaski County, ~70 mills). The prior-year assessed value was $40,000 (last year the property was valued at $200,000 — the market doubled in one year, which can happen when a county finally reappraises after a long cycle).

• Uncapped assessed value: $400,000 × 20% = $80,000
• Amendment 79 ceiling: $40,000 × 1.05 = $42,000
• Assessed value (capped): $42,000 (cap binds)
• Tax before credit: $42,000 × 0.070 = $2,940
• $425 credit applied: −$425
• Tax after credit: $2,515
• Annual cap protection (relative to uncapped): ($80,000 − $42,000) × 0.070 = $2,660 of tax NOT paid this year

The remaining "phase-in" runs over subsequent years. In year 2 the ceiling rises to $42,000 × 1.05 = $44,100, and so on. Even if the market value stayed flat at $400,000 forever, it would take more than 13 years for the capped assessed value to catch up to the uncapped $80,000 figure. The longer an owner stays in place, the more the cap protects against the next reappraisal.

The $425 Property Tax Credit — § 26-26-1118

Under § 26-26-1118, a flat $425 credit is applied directly against the property-tax bill on the owner's principal residence (the "homestead"). Every Arkansas homeowner qualifies on the homestead — no age test, no income test, no veteran requirement.

The credit history:

• Original: $300 (per Amendment 79's enabling legislation in 2001)
• 2007: increased to $350
• 2019: increased to $375
• 2023: increased to $425 by Act 670 of 2023, effective for the 2024 tax year

The credit is refundable against the bill but not against zero — if the calculated tax before credit is less than $425, the bill goes to zero, but the difference is not paid out in cash. The credit is funded by the Property Tax Relief Trust Fund at the state level, which reimburses counties for the foregone revenue — so local government services are not affected by the credit.

For a low-value homestead the credit can eliminate the bill entirely. A $40,000 home in a typical rural county (45 mills) produces an uncapped bill of $40,000 × 20% × 0.045 = $360 — fully covered by the credit, taxes due: $0.

The 100% Disabled Veteran Exemption — § 26-3-306

Under § 26-3-306, a veteran with a 100% permanent and total service-connected disability rating from the U.S. Department of Veterans Affairs (or an unremarried surviving spouse / minor dependent child) is fully exempt from real- and personal-property tax on the homestead.

This is among the most generous disabled-veteran property-tax exemptions in the United States:

• No maximum dollar amount (compare North Carolina's $45,000-of-appraised-value cap or Georgia's ~$120K exclusion)
• No income test (compare California's income-tested exemption for under-65 disabled veterans)
• Extends to unremarried surviving spouses and to minor dependent children
• Extends to surviving spouses of service members killed in the line of duty

Apply with the county assessor with a copy of the VA disability determination letter. The exemption is one-time and persists for as long as the veteran (or qualifying spouse / dependent) owns and occupies the homestead.

Amendment 59 — the "Rollback Amendment"

Ratified by Arkansas voters in 1980, Amendment 59 addresses a different problem: keeping taxing-jurisdiction revenue from ballooning at countywide reappraisal. When a reappraisal would produce more than a 10% total revenue increase for any taxing unit — county, school district, city, improvement district — the millage rate must be rolled back proportionally so post-reappraisal revenue does not exceed 110% of the pre-reappraisal revenue.

Practically: when a Pulaski County reappraisal pushes total county-property values up 25%, the county-portion millage rolls back from (say) 5.0 mills to roughly 4.4 mills — keeping total county revenue at 110% of prior year rather than 125%. The rollback is computed by the county clerk after reappraisal and published before millage rates are set for the year.

Amendment 79 + Amendment 59 working together:

• Amendment 79 protects individual taxpayers — caps the year-over-year assessed-value increase.
• Amendment 59 protects the taxing pool overall — caps year-over-year revenue growth from reappraisal.

Together they make Arkansas one of the most homeowner-favorable property-tax regimes in the country. New construction and recent sales do escape Amendment 79's protection in year one, but the $425 credit, the 20% ratio, and Amendment 59's millage rollback still keep effective rates low.

Common combined millage rates by county

Combined millage (county + school + average municipal) for 2024–2025 on residential principal residences. One mill = $1 per $1,000 of assessed value = 0.1% of assessed value = 0.02% of market value (given the 20% ratio).

| County | Combined millage | Effective rate of MV | $250K homestead tax | | --- | --- | --- | --- | | Pulaski (Little Rock) | 70.0 mills | 1.40% | $3,075 | | Washington (Fayetteville) | 62.0 mills | 1.24% | $2,675 | | Sebastian (Fort Smith) | 58.0 mills | 1.16% | $2,475 | | Faulkner (Conway) | 57.5 mills | 1.15% | $2,450 | | Benton (Bentonville) | 56.0 mills | 1.12% | $2,375 | | Craighead (Jonesboro) | 55.0 mills | 1.10% | $2,325 | | Saline (Bryant / Benton city) | 53.0 mills | 1.06% | $2,225 | | Garland (Hot Springs) | 51.0 mills | 1.02% | $2,125 | | Rural / other (typical) | 45.0 mills | 0.90% | $1,825 |

The figures above assume the principal residence with the $425 credit applied and the cap not binding. The cap protection materially lowers the effective rate for long-tenured owners; a Pulaski owner whose cap is binding at $42,000 assessed (instead of the uncapped $50,000) pays $2,515 instead of $3,075 — an effective rate of just over 1.0% on a $250K home.

Worked example — $300,000 Fayetteville home

A $300,000 home in Fayetteville (Washington County, ~62 mills), first year on the rolls (no prior-year assessed value, so Amendment 79's cap does not bind this year — it starts running forward from this year's figure).

• True (market) value: $300,000
• Assessed value: $300,000 × 20% = $60,000
• Tax before credit: $60,000 × 0.062 = $3,720
• $425 credit applied: −$425
• Tax after credit: $3,295
• Effective rate: $3,295 / $300,000 = 1.10% of market value

In year two, Amendment 79 starts protecting the owner. If the next countywide reappraisal pushes market value to $400,000, the cap holds assessed value at $60,000 × 1.05 = $63,000 instead of the uncapped $80,000. Tax in year two: $63,000 × 0.062 − $425 = $3,481, instead of the uncapped $80,000 × 0.062 − $425 = $4,535.

Worked example — Bentonville cap-binding case

A $350,000 home in Bentonville (Benton County, ~56 mills). The owner has been there long enough that the prior-year assessed value is just $40,000.

• Uncapped assessed value: $350,000 × 20% = $70,000
• Amendment 79 ceiling: $40,000 × 1.05 = $42,000
• Assessed value (capped): $42,000
• Tax before credit: $42,000 × 0.056 = $2,352
• $425 credit applied: −$425
• Tax after credit: $1,927
• Effective rate: $1,927 / $350,000 = 0.55% of market value

That's an effective property-tax rate competitive with Alabama, Louisiana, and Hawaii — the bottom of the national rankings. The long-tenured Bentonville owner gets compounded protection: a low millage, the 20% ratio, the cap on the year-over-year increase, AND the $425 credit. Same home with no prior assessment (cap not binding): $70,000 × 0.056 − $425 = $3,495, an effective rate of 1.00%.

Worked example — $400,000 home, 100% disabled veteran

Same $400,000 Little Rock home. Owner is a veteran with a 100% service-connected disability rating from the VA.

• Real-property tax on the homestead: $0 (§ 26-3-306 total exemption)
• Annual savings vs the standard $3,075 bill: $3,075

The exemption stays in place as long as the veteran owns and occupies the homestead. On the veteran's death the exemption transfers to the unremarried surviving spouse and to any minor dependent children. This is one of the most accessible Arkansas property-tax benefits — no income test, no age test, no waiting period beyond receiving the VA disability rating.

Comparing Arkansas to surrounding states

Effective residential property-tax rates on principal residences:

| State | Effective rate (typical) | Why | | --- | --- | --- | | Alabama | ~0.40% | 10% ratio + homestead exemption | | Louisiana | ~0.55% | $7,500 assessed homestead exemption | | Arkansas | ~0.50%–1.25% | 20% ratio + Amend. 79 cap + $425 credit | | Mississippi | ~0.65%–0.85% | 10% ratio (Class I) + homestead | | Tennessee | ~0.65% | 25% ratio, no broad credit | | Oklahoma | ~0.85% | ~11% ratio + $1K homestead exemption | | Missouri | ~0.95% | 19% ratio, no broad credit | | Texas | 1.60%–2.00% | 100% ratio + $100K homestead but high millage |

Arkansas effective rates run roughly even with Mississippi and Tennessee, well below Missouri and Oklahoma, dramatically below Texas. The cap-binding case for a long-tenured homestead can take effective rates below Alabama and Louisiana.

The mid-range positioning has three drivers:

1. The 20% ratio divides every dollar of market value by five before millage applies.
2. Amendment 79's cap further protects the assessed-value figure between reappraisals.
3. The $425 credit is a much larger percentage reduction on a low-ratio bill than the equivalent dollar would be in a 100%-ratio state. (A $425 credit on a $3,500 bill is 12%; in Texas the same $425 credit against a $7,000 bill would be 6%.)

Personal property under § 26-26-1305

Arkansas counties also tax personal property — vehicles, boats, trailers, business equipment — at the same 20% assessment ratio and the same millage as real property. The personal-property assessment is a separate annual filing with the county assessor (typically due May 31) and produces a separate bill from the county tax collector. This calculator addresses real property only; the personal-property bill is computed using the same ratio and millage but against the depreciated personal-property value rather than market value of real estate.

Personal-property assessment is one of the under-discussed costs of moving to Arkansas. A new resident with a $40,000 truck and a $30,000 boat will see an additional personal-property assessment of $70,000 × 20% = $14,000 against which the county millage applies — roughly $700–$1,000 per year on top of the real-property bill, with no $425 credit available.

Common errors to avoid

• Treating prior-year assessed value as last year's market value. The prior-year assessed value is already at the 20% ratio. Pull it directly from last year's tax bill or the county assessor's online record; do NOT divide last year's market value by five and use that figure (which would double-apply the ratio when this calculator already applies it). Leave the field at $0 if you do not have last year's assessed figure — Amendment 79's cap will not apply, but no other math goes wrong.
• Forgetting that the cap resets on sale. A buyer in year one is taxed on the full 20%-of-market figure. The cap then runs forward from that year-one figure. Newly purchased property does not inherit the seller's cap protection.
• Missing the senior / disability assessment freeze. Amendment 79 freezes the assessed value once the owner turns 65 or becomes totally and permanently disabled — at the figure in effect that year. Apply with the county assessor in the year of the qualifying event; the freeze does not start retroactively.
• Assuming the $425 credit covers vehicles or other personal property. The credit applies only to the principal residence's real-property tax. The personal-property bill (vehicles, boats) gets no credit.
• Confusing Amendment 79 with Amendment 59. Amendment 79 caps the year-over-year increase in individual assessed value (5% / 10%). Amendment 59 caps the year-over-year increase in total taxing-unit revenue (10%) via millage rollback. The two work together but address different scales.
• Filing the disabled-veteran exemption with the wrong agency. Apply with the county assessor (not the state, not the VA). Provide a copy of the VA letter showing 100% permanent and total service-connected disability; the assessor will record the exemption and notify the county tax collector.

Tools, not advice. Confirm the binding county and school millage with the county tax collector and confirm exemption eligibility (and the current statutory credit amount) with the county assessor before relying on any result for planning purposes.