The Homestead Exemption in Arkansas
Who qualifies for the Arkansas homestead property tax exemption, how much it saves, and how and when to apply.
Short answer: Arkansas gives a homestead property tax credit rather than an exemption. Homeowners may receive a credit of up to $500 per year, and the General Assembly has authorized an increase to up to $600 beginning with the 2026 tax bills. Arkansas DFA Assessment Coordination Division, Homestead Tax Credit and Property Relief; Ark. Code Ann. §§ 26-26-1118, 26-26-1119; Ark. Const. Amend. 79
| Homestead exemption | Arkansas gives a homestead property tax credit rather than an exemption. Homeowners may receive a credit of up to $500 per year, and the General Assembly has authorized an increase to up to $600 beginning with the 2026 tax bills. The homestead is the dwelling used as the owner's principal residence; owners include the record owner, a buyer under a recorded sales contract, or the holder of a recorded life estate, and the home may be held in a revocable or irrevocable trust. Only one homestead credit may be claimed per year, and the credit cannot exceed the tax owed. Credit-limit and one-credit rules: https://www.dfa.arkansas.gov/wp-content/uploads/faqs-2023.pdf |
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| How to apply | Apply for the homestead credit, and for the age 65/disabled assessment freeze, with your county assessor's office. Proof of eligibility for the credit may be submitted directly to the assessor or attached to the deed or other conveyance filed with the circuit clerk, who forwards it to the assessor. Once a parcel qualifies, the credit attaches to the property for the whole year even if it is sold; a purchaser must notify the assessor of a new use of the property. FAQ: https://www.dfa.arkansas.gov/wp-content/uploads/faqs-2023.pdf |
| Application deadline | Proof of eligibility for the homestead tax credit must be registered with the county assessor on or before October 15 of the year after the assessment, and the property must qualify before January 1 of the year following the assessment year. |
| Limits on assessment increases | Under Amendment 79, the taxable assessed value of a homestead can increase no more than 5% per year until it reaches full assessed value; other real property (commercial, agricultural, vacant) is capped at a 10% annual increase after a countywide reappraisal. The caps do not apply to new construction, newly discovered property, or substantial improvements. Property is assessed at 20% of market value. |
More Arkansas property tax & homestead exemptions
- Senior, Veteran and Disability Property Tax Relief in Arkansas
- Appealing Your Property Tax Assessment in Arkansas
- All Arkansas property tax & homestead exemptions rules
FAQ
What is the homestead exemption in Arkansas?
Arkansas gives a homestead property tax credit rather than an exemption. Homeowners may receive a credit of up to $500 per year, and the General Assembly has authorized an increase to up to $600 beginning with the 2026 tax bills. The homestead is the dwelling used as the owner's principal residence; owners include the record owner, a buyer under a recorded sales contract, or the holder of a recorded life estate, and the home may be held in a revocable or irrevocable trust. Only one homestead credit may be claimed per year, and the credit cannot exceed the tax owed.
How do you apply for a homestead exemption in Arkansas?
Apply for the homestead credit, and for the age 65/disabled assessment freeze, with your county assessor's office. Proof of eligibility for the credit may be submitted directly to the assessor or attached to the deed or other conveyance filed with the circuit clerk, who forwards it to the assessor. Once a parcel qualifies, the credit attaches to the property for the whole year even if it is sold; a purchaser must notify the assessor of a new use of the property.
When is the deadline to apply for a homestead exemption in Arkansas?
Proof of eligibility for the homestead tax credit must be registered with the county assessor on or before October 15 of the year after the assessment, and the property must qualify before January 1 of the year following the assessment year.
How much can a home's assessed value go up each year in Arkansas?
Under Amendment 79, the taxable assessed value of a homestead can increase no more than 5% per year until it reaches full assessed value; other real property (commercial, agricultural, vacant) is capped at a 10% annual increase after a countywide reappraisal. The caps do not apply to new construction, newly discovered property, or substantial improvements. Property is assessed at 20% of market value.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.