Arkansas Property Tax 2026: Amendment 79, Homestead Credit Up to $600 & Senior Freeze

Arkansas Amendment 79 to the state constitution, approved in 2000, remains the foundation of homeowner property tax relief in the state: a Homestead Tax Credit raised to $600 for 2026 tax bills (up from $425), a 5 percent annual cap on homestead taxable value growth, and a senior freeze for homeowners age 65 or older. This 2026 guide explains the three benefits.

How Arkansas Property Tax Works

Arkansas property tax is administered by 75 county assessors and county collectors. The Arkansas Assessment Coordination Division (ACD) of the Department of Finance and Administration oversees uniform standards.

Assessment ratio

Arkansas assesses real property at 20% of appraised value (market value). This is a statewide constitutional ratio.

Amendment 79 Benefits

Homestead Tax Credit ($600 starting 2026)

A direct credit against property tax. The Arkansas General Assembly increased the credit from $425 to up to $600 beginning with 2026 tax bills.

• Applies to owner-occupied primary residence
• Direct reduction against gross property tax
• Applies first to state general fund portion, then to other components

Five-Percent Cap on Taxable Value

The taxable assessed value of a homestead property cannot increase more than 5% per year. Exceptions apply for:

• Newly discovered property
• New construction
• Substantial improvements to existing structures

The 5% cap resets when ownership changes (welcome-stranger effect). For long-term owners in appreciating markets, this cap produces substantial tax savings.

Senior/Disabled Freeze

Homeowners who qualify for the Homestead Tax Credit and are either:

• Age 65 or older, OR
• Disabled (any age)

...may have their taxable assessed value frozen at the level established at the next assessment date after turning 65 or becoming disabled. No income limit applies.

The freeze continues indefinitely as long as the homestead is owned and occupied. Ends when property is sold or no longer qualifies as homestead.

Applications

File with the county assessor. Separate applications for Homestead Tax Credit and for Senior/Disability Freeze. Usually one-time filings with automatic continuation.

Other Exemptions

100% Disabled Veteran Exemption

Veterans with 100% service-connected disability rating (and surviving spouses/minor dependent children) receive a full property tax exemption on the homestead. Administered through the county assessor with VA certification.

Municipal Use Tax

Arkansas cities may levy additional property tax for municipal services, with separate millage rates. These are included in the combined millage shown on tax bills.

Appealing Your Assessment

Arkansas appeals go through the county assessor, County Board of Equalization, and Arkansas Tax Court.

Step 1: Informal review with the assessor

Contact the county assessor after receiving the assessment notice.

Step 2: County Board of Equalization

File written request for hearing within the statutory window (varies by county, typically late summer).

Step 3: County Court

Appeal from BOE to the county court within statutory timeframe.

Step 4: Arkansas Tax Court or Circuit Court

Further appeals to state-level review.

Payment Schedule

Arkansas real property tax for a year is due by October 15 of the following year. Partial payment is allowed.

Delinquent tax accrues 10% annual interest plus penalty. After two years of delinquency, the property may be sold at the County Tax Collector's tax sale. Redemption available within 2 years.

Frequently Asked Questions

What is Arkansas's homestead tax credit in 2026?

The Arkansas General Assembly increased the Homestead Tax Credit from $425 to up to $600 beginning with 2026 tax bills. The credit is a direct reduction against gross property tax on an owner-occupied primary residence. Apply through the county assessor.

How does Arkansas Amendment 79 cap work?

Amendment 79 (2000) limits annual growth in the taxable assessed value of a homestead to 5%. The cap does not apply to newly discovered property, new construction, or substantial improvements. The 5% cap resets when ownership changes, creating a welcome-stranger effect that benefits long-term owners.

Who qualifies for Arkansas senior freeze?

Homeowners who qualify for the Homestead Tax Credit and are either age 65 or older OR disabled (any age). The freeze locks the taxable assessed value at the level established at the next assessment date after turning 65 or becoming disabled. No income limit applies. File a separate application for the freeze with the county assessor.

What is Arkansas's property tax assessment ratio?

20% of appraised (market) value for all real property, set by the Arkansas Constitution. After this 20% ratio is applied, Amendment 79 caps further growth at 5% per year on homesteads (except for new construction or substantial improvements).

Are disabled veterans exempt from Arkansas property tax?

Yes. Veterans with 100% service-connected disability rating (and surviving spouses/minor dependent children) receive a complete property tax exemption on their homestead. Apply through the county assessor with VA certification of 100% service-connected disability.