The Arkansas property tax assessment ratio is generally 20% of market value for real property. That means a home worth 300,000 has a starting assessed value of 60,000 before taxable value limits or credits
This ratio is one of the most important numbers in an Arkansas property tax estimate Millage is applied to assessed value not the full price of the home
Market Value vs Assessed Value
Market value is the estimated price a property would bring in an open market Assessed value is the taxable base after applying the Arkansas assessment ratio
The Arkansas DFA FAQ says assessments are based on current market value and that full assessed value is determined by multiplying market value by the 20% assessment rate
| Market Value | Assessment Ratio | Assessed Value |
|---|---|---|
| $150,000 | 20% | $30,000 |
| $250,000 | 20% | $50,000 |
| $400,000 | 20% | $80,000 |
Why the Ratio Matters
A 50 mill rate can sound high until you remember that it applies to assessed value On a 250,000 home, the tax base is 50,000 A 50 mill rate creates a 2,500 pre credit estimate
If someone applies the millage rate directly to market value the estimate will be far too high This is a common mistake when buyers first compare Arkansas property taxes.
How Assessors Estimate Market Value
Arkansas DFA explains that assessors and appraisers may use cost sales comparison and income approaches to estimate fair market value Residential homes are often reviewed through comparable sales and property characteristics
County records may include square footage yearbuilt, quality, condition, landvalue, additions, and other improvements. If those facts are wrong the assessed value can also be wrong
Taxable Value May Differ
Assessed value and taxable assessed value are not always the same Amendment 79 can limit how much taxable assessed value rises after a county wide reappraisal Arkansas DFA states that homestead property increases can be limited to 5% per year and other real property can be limited to 10% per year until full assessed value is reached
New construction newly discovered property and substantial improvements can be treated differently For a precise parcel answer review the county record or contact the county assessor
How to Use the Ratio in a Calculator
- Enter the home market value
- Multiply by 20 to estimate assessed value
- Apply the local millage rate
- Subtract the 2026 homestead credit if eligible
- Compare the result to your official bill
Check Your Assessed Value
Use the statewide calculator to see how market value assessed value and millage work together
Estimate Your Tax →Frequently Asked Questions
Is Arkansas assessed value always 20%?
For general real property tax estimates 20 is the standard assessment ratio Parcel specific taxable value can differ because of caps or relief programs
Who sets my market value?
The county assessor is responsible for property records and assessed values subject to state oversight and appeal rights
Can I appeal assessed value?
Yes Start with the assessor record then follow the county equalization process if the value still appears wrong
Works Cited
"Frequently Asked Questions."Arkansas Department of Finance and Administration, Assessment Coordination Division,2023, https://www.dfa.arkansas.gov/wp-content/uploads/faqs-2023.pdf.
"Three Approaches to Value."Arkansas Department of Finance and Administration, 4 Dec. 2024, https://www.dfa.arkansas.gov/office/arkansas-assessment-coordination-division/real-property/three-approaches-to-value/.
"Property Tax Relief."Arkansas Department of Finance and Administration, 3 Dec. 2025, https://www.dfa.arkansas.gov/office/arkansas-assessment-coordination-division/real-property/property-tax-relief/.