How to Calculate Property Tax in Arkansas (2026 Complete Guide)

Every year, Arkansas homeowners receive a property tax bill but few people understand exactly how it's calculated If you've ever stared at your bill wondering why your taxes went up or whether they're even correct), this guide will demystify the entire process

Arkansas uses atwo step assessment processthat's a bit different from other states Understanding it can help you verify your bill identify if you're being over taxed and potentially save hundreds of dollars per year

Step 1—Appraised Value (Market Value)

The starting point for your property tax is theappraisedvaluethe county assessor's estimate of what your property would sell for on the open market This is set as ofJanuary 1 each year.

Your county assessor determines appraised value using

• Sales comparison approachWhat similar homes in your area have sold for recently
• Costapproach:The cost to replace your home minus depreciation
• Incomeapproach:Used primarily for rental and commercial properties

You should receive a notice if your assessed value changes significantly If you believe the appraised value is higher than your home's actual market value you have the right to appeal

Step 2—Assessed Value (20% of Appraised)

Arkansas law requires residential property to be assessed at20 of its appraised market value. This is called the assessment ratio.

Assessment ratios for other property classes

• Residential homestead20%
• Commercial Industrial40%
• Agricultural land use value20%
• Personal property vehicles, boats):20%

Step 3—Apply the Homestead Credit

If the property is your primary residence Arkansas provides aHomestead Property Tax Credit. Arkansas DFA says 2026 tax bills are authorized up to$600. This is applied to your final tax bill not subtracted from assessed value

The credit applies automatically once you file your homestead application with the county assessor. You only need to file once as long as you remain in the same home

Step 4—The Millage Rate

The millage rate determines how much tax you pay per 1,000 of assessed value1 mill=$1 per $1,000 of assessed value. Millage rates are set by

• School districts typically the largest portion 10 40 mills
• County government roads courts, sheriff)
• City municipality if you live in a city
• Special improvement districts fire water, etc.)

Your total millage rate is the sum of all these components That's why two homes in the same county but different school districts or cities can have very different tax bills

The Full Formula

Worked Example Pulaski County

Let's walk through a real calculation using Pulaski County Little Rockarea), which has a county average millage rate of approximately 47.1 mills.

Worked Example—Benton County

Benton County Benton ville Rogers area is the fastest growing county With an average of 39 0 mills:

How to Verify Your Tax Bill

1. Check your appraised value Look up your property on your county assessor's website or contact the office directly
2. Calculate 20%Multiply the appraised value by 0.20 to get assessed value
3. Find your millage rate—Check ourmillagerates tableor your last year's tax bill
4. Run the formula—Or use ourfreecalculator.
5. Subtractcredits—up to $600 homestead credit for 2026 bills if it's your primary residence.
6. Compare to your billIf there's a significant difference contact your county assessor.

Why Did My Property Tax Go Up?

Your tax bill can increase for several reasons

• Higher appraised value The assessor raised your home's market value estimate common in rising markets
• Millage rate increaseVoters approved a new bond issue for schools or roads in your area.
• Lostexemption:Your homestead or other exemption expired or was not renewed
• Newimprovements:You added a room pool, or other improvements that the assessor discovered.

Frequently Asked Questions

What percentage of home value is assessed in Arkansas?

Residential property is assessed at20 of appraised market value. This is established by Article 16, Section 5 of the Arkansas Constitution and applies uniformly across all 75 counties.

How do I find my county's millage rate?

Check ourcomplete millage rates table, contact your county assessor's office or look at last year's tax bill the millage rate is usually printed on it Note that the rate on your bill will be for your specific taxing district which may differ from the county average.

When is assessed value set?

The assessor values your property as ofJanuary 1each yearIf you buy a home mid-year, your first full year will reflect the January 1 value.

Can I appeal if my assessed value is wrong?

Yes You can appeal to your County Board of Equalization during the annual equalization period typically August through September. See our full appeal guide for details.

Are there property tax exemptions in Arkansas?

Yes the homestead credit applies to primary residences with 2026 bills authorized up to 600 Additional exemptions exist for disabled veterans low income seniors and other groups See ourexemptionsguidefor full details.