The effective property tax rate in Arkansas is the annual tax bill compared with the property's market value. It is different from the millage rate because Arkansas first converts market value to assessed value before applying local taxes
For 2026 planning, use the effective rate as a quick comparison tool then use the millage rate and assessed value formula for your actual estimate. Your exact bill can change by school district city limits, local levies, exemptions, and credits.
What Effective Property Tax Rate Means
An effective property tax rate converts your annual bill into a percentage of market value. If a 200,000 homepays $1,000 after credits the effective rate is 0.50%.
Arkansas taxes are built from assessed value not full market value. The state assessment level is 20% of market value according to the Arkansas Department of Finance and Administration property tax FAQ.
How Millage Converts to an Effective Rate
One mill equals 1 per $1,000 of assessed value Since Arkansas generally assesses property at 20% of market value a 50 mill rate is not a 5% tax on market value. It is roughly 1.00% of market value before credits because only one fifth of the market value is taxed
The shortcut is simple multiply the millage rate by 0.02 to estimate the pre credit effective rate A 40 mill district is roughly 0.80% before credits A 60 mill district is roughly 1.20% before credits
The final rate can be lower when the homestead credit applies Arkansas DFA says homeowners may receive up to 500 per year and that 2026 tax bills are authorized up to 600 This site now uses the 600 figure for 2026 estimates.
Arkansas Effective Property Tax Rates by County
The county averages below come from this site's 2026 county data set They are useful for comparisons but they are not a substitute for your parcel's tax district
Highest Effective Rate Counties
| Rank | County | Effective Rate | Average Millage |
|---|---|---|---|
| 1 | Phillips County | 0.81% | 53.71 mills |
| 2 | Pulaski County | 0.76% | 59.56 mills |
| 3 | Prairie County | 0.72% | 52.13 mills |
| 4 | Jefferson County | 0.66% | 58.16 mills |
| 5 | Lonoke County | 0.63% | 51.61 mills |
| 6 | Sebastian County | 0.62% | 52.18 mills |
Lowest Effective Rate Counties
| Rank | County | Effective Rate | Average Millage |
|---|---|---|---|
| 1 | Montgomery County | 0.32% | 43.58 mills |
| 2 | Stone County | 0.32% | 41.76 mills |
| 3 | Newton County | 0.38% | 46.33 mills |
| 4 | Randolph County | 0.4% | 42.76 mills |
| 5 | Polk County | 0.41% | 44.64 mills |
| 6 | Madison County | 0.41% | 47.18 mills |
Worked Effective Rate Examples
A $250,000 primary residence in a 50 mill district has an assessed value of 50,000 Before credits the tax is 2,500 With the 2026 homestead credit of up to 600 the estimated bill is 1,900 The after credit effective rate is 0.76%.
A $120,000 home in a 35 mill district has an assessed value of 24,000 Before credits the tax is 840 With the homestead credit the estimated bill is 240 The after credit effective rate is 0.20%.
Why Your Rate Can Differ From the County Average
- School district boundariesSchool millage often makes up the largest share of the total rate
- Citylimits:A city levy can apply to one parcel but not a nearby rural parcel
- Special districts:Fire, library, improvement, and other local districts can add mills
- Credits and caps:Homesteadcredit, age 65 freezes, disability relief, and Amendment 79 caps can change taxable value or final tax.
How to Use This Rate Before Buying or Budgeting
- Start with the county page for the property location
- Use the statewideArkansas millage rates tableto compare nearby counties
- Open the county assessor page to verify the parcel's exact tax district
- Run the estimate with theArkansas property tax calculator.
Estimate Your 2026 Bill
Use the calculator with your county value, and homestead status then compare the result with the county rate table
Open Free Calculator →Frequently Asked Questions
What is the effective property tax rate in Arkansas for 2026?
The average effective rate in this site's county data set is about 0.54% of market value. Your actual rate depends on your parcel's taxing district assessed value and credits.
Is the effective rate the same as the millage rate?
No Millage applies to assessed value Effective rate compares the final bill with market value
Does the homestead credit lower the effective rate?
Yes A flat credit lowers the final tax bill so it lowers the after credit effective rate. The impact is larger on lower value homes
Works Cited
"Property Tax Relief."Arkansas Department of Finance and Administration, Arkansas Assessment Coordination Division, 3 Dec. 2025, https://www.dfa.arkansas.gov/office/arkansas-assessment-coordination-division/real-property/property-tax-relief/.
"Millage Book."Arkansas Department of Finance and Administration, Arkansas Assessment Coordination Division, 7 Apr. 2026, https://www.dfa.arkansas.gov/office/arkansas-assessment-coordination-division/county-officials/millage-book/.
"Frequently Asked Questions."Arkansas Department of Finance and Administration, Arkansas Assessment Coordination Division,2023, https://www.dfa.arkansas.gov/wp-content/uploads/faqs-2023.pdf.