Arkansas boasts a highly favorable property tax climate for homeowners, with a statewide effective rate of just 0.56%. The state uses a fractional assessment system, taxing homes on only 20% of their actual market value. Furthermore, Amendment 79 to the state constitution strictly caps how much a primary residence’s taxable value can increase each year (est., Tax Foundation 2026 / U.S. Census ACS 2023).
With a statewide effective property tax rate of 0.56%, Arkansas ranks among the top 15 lowest property tax states in the nation. Coupled with modest housing prices (statewide median home value of approximately $175,000), the actual out-of-pocket tax bill for an Arkansas homeowner is exceptionally low. The state’s system relies heavily on constitutional caps and fractional assessments to protect residents from runaway tax inflation.
The 20% Assessment Ratio and Reappraisal Cycle
In Arkansas, property is not taxed on its full fair market value. Instead, the state mandates a uniform assessment ratio of 20% across all property types.
For example, if the County Assessor determines your home could sell for $200,000, your Assessed Value for tax calculation purposes is only $40,000. Your local millage rate is then applied against that $40,000 figure.
To keep values updated, state law requires counties to conduct a county-wide reappraisal of all real property on a rotating four-year cycle (updated from a five-year cycle by a 2023 law).
Arkansas statewide effective rate. On a $175,000 home, expect approximately $980 per year at the statewide average. (est., Tax Foundation 2026 / Census ACS 2023).
| Home Value | Annual Tax (est.) | Monthly Payment | vs. U.S. Average |
|---|---|---|---|
| $150,000 | $840 | $70 | -$510 below avg. |
| $200,000 | $1,120 | $93 | -$680 below avg. |
| $300,000 | $1,680 | $140 | -$1,020 below avg. |
| $500,000 | $2,800 | $233 | -$1,700 below avg. |
| $750,000 | $4,200 | $350 | -$2,550 below avg. |
Estimates use 0.56% statewide effective rate. U.S. average uses 0.90%. Source: est., Tax Foundation / Census ACS 2023.
Amendment 79: The 5% Constitutional Cap
To prevent drastic tax spikes following a reappraisal year, Arkansas voters passed Amendment 79. This powerful constitutional provision limits how much a property’s taxable assessed value can increase each year.
- Primary Residences: The taxable assessed value of your primary homestead cannot increase by more than 5% per year, regardless of how much the actual market value jumps.
- Non-Primary / Commercial: Investment properties, commercial real estate, and secondary homes are capped at a 10% maximum annual increase.
The “Uncapping” Rule: These caps do not apply if a home is newly discovered, newly constructed, or “substantially improved” (defined by 2023 Act 1386 as an improvement that increases square footage by at least 25%). Furthermore, when a home is sold, the taxable value resets to its full current market value for the new owner.
Homestead Tax Credit and Senior Valuation Freeze
Arkansas provides significant relief to primary homeowners through tax credits and value freezes.
- Homestead Property Tax Credit: If you own and occupy your home as your primary residence, you are entitled to a flat deduction straight off your tax bill. In 2025 (Act 330), the state officially increased this credit to $600 for assessment years beginning Jan 1, 2025 (which affects 2026 tax bills). This translates to a massive discount for lower-valued homes.
- Senior and Disabled Valuation Freeze: When a homeowner turns 65 years old, or becomes legally disabled, the taxable assessed value of their primary residence is permanently frozen. It will not increase as long as they own and occupy the home. (Note: This freezes the valuation, not the millage rate. If local voters approve a new millage tax, the total bill could still slightly increase).
Major County Tax Rates in Arkansas
Pulaski County (Little Rock) is the most populous county in Arkansas and carries the highest effective tax rate at 0.74%. This higher rate is necessary to fund the urban infrastructure and large school districts of the state capital.
In contrast, the rapidly growing Northwest Arkansas region (Benton and Washington counties) maintains lower effective rates (around 0.49% to 0.54%). Strong commercial growth and soaring property values in this area generate sufficient revenue without requiring high millage rates.
| County | Effective Rate | Annual Tax on $175,000 Home | Notes |
|---|---|---|---|
| Pulaski County | 0.74% | $1,295 | Includes Little Rock; highest effective rate in top 10. |
| Benton County | 0.54% | $945 | Includes Bentonville/Rogers; fast-growing, low tax burden. |
| Washington County | 0.49% | $857 | Includes Fayetteville (U of A); very low effective rate. |
| Sebastian County | 0.55% | $962 | Includes Fort Smith; tracks state average. |
| Faulkner County | 0.48% | $840 | Includes Conway; low effective rate. |
| Saline County | 0.58% | $1,015 | Suburban Little Rock. |
| Craighead County | 0.55% | $962 | Includes Jonesboro. |
| White County | 0.41% | $717 | Includes Searcy; lowest effective rate in the top 10. |
| Garland County | 0.44% | $770 | Includes Hot Springs. |
| Lonoke County | 0.56% | $980 | Suburban Little Rock. |
Disclaimer and Methodology
This calculator provides estimates for planning purposes only, based on effective property tax rates (actual median taxes paid divided by median home values). Under Arkansas law, property is assessed at a fractional 20% of its market value, and valuation increases are capped at 5% annually for primary residences. Because exact millage rates vary heavily by specific school district, this calculator uses historical “effective rates” to bypass fractional math and provide a highly realistic estimate of actual homeowner burden.
What this calculator does not account for:
- The “uncapping” of your home’s taxable value upon a sale. New buyers will see their home assessed at its full, new purchase price, meaning their initial tax bill may be higher than the previous owner’s capped bill.
- The exact $600 Homestead Tax Credit, which is a flat deduction applied to the final tax bill, rather than an exemption subtracted from the home’s value. The effective rates used in this calculator already generally reflect the savings from this credit across the median population.
How to get an accurate estimate:
- Find your home’s “Appraised Value” on your County Assessor’s property search tool.
- Multiply it by 0.20 to get your Assessed Value.
- Multiply the Assessed Value by your local millage rate, divide by 1,000, and then subtract the $600 Homestead Tax Credit.
Data sources: Statewide effective rate and county effective rates derived from U.S. Census Bureau ACS 2023 and SmartAsset aggregations. Statutory rules and constitutional caps from the Arkansas Assessment Coordination Division (AACD).
Return to the National Property Tax Calculator to compare Arkansas with other states.