Arkansas Mortgage Calculator
Arkansas assesses homes at 20% of market value and pairs that with a flat $600 homestead credit — pick your county below to see your real payment.
Loan & Property Details
Auto-fills from the county selected above; edit if you know your exact city + school district millage.
Your Estimated Monthly Payment
Choose a county and enter your details to see a plain-language read on your payment.
What If You Paid Extra Toward Principal?
Slide to test an extra monthly payment and see how many years and how much interest it saves.
What If Your Rate Changes?
Your 5-Year Equity Snapshot
Good to Know: What a Seller Pays (Real Property Transfer Tax)
You won’t pay this as a buyer, but it’s worth understanding since you’ll be a seller someday.
| Statewide transfer tax rate | $3.30 per $1,000 of sale price (0.33%) |
| Who customarily pays | Seller, negotiable by contract |
| Example on a $250,000 sale | $250,000 ÷ $1,000 × $3.30 = $825 |
| Legal basis | Arkansas Real Property Transfer Tax, Ark. Code Title 26 |
How Arkansas Actually Calculates Your Property Tax Bill
Arkansas is one of a handful of states that assesses homes at a fraction of market value rather than the full price, similar in structure to Alabama’s 10% ratio, except Arkansas uses 20%. County assessors determine your home’s full market value, apply that 20% assessment ratio to arrive at assessed value, and then apply the local millage rate to that smaller number. On top of that, Amendment 79 to the Arkansas Constitution caps how much your assessed value can climb in any single year, capped at 5% annually for a homestead and 10% for other property, until the next full reassessment cycle catches values up to market. This calculator uses each county’s effective rate, already expressed as a percentage of full market value, so you don’t need to run the assessment-ratio math by hand.
Pulaski, Benton, Washington, and Faulkner: how the four biggest markets compare
Pulaski County, home to Little Rock, carries the highest effective property tax rate among Arkansas’s major counties, reflecting the tax base needed to fund a large capital city. Benton County, anchoring fast-growing Bentonville and Rogers in Northwest Arkansas, runs a close second on effective rate, and its higher home values mean it posts the highest median dollar tax bill in the state even though its rate isn’t the highest. Washington County, home to Fayetteville, runs a noticeably lower effective rate. Faulkner County, covering Conway and the fast-growing edge of the Little Rock metro, sits in the middle. Every one of Arkansas’s 75 counties sets its own combined rate, so switching counties above resets both the price and rate defaults to match.
| Home market value | $235,000 |
| Arkansas assessment ratio | 20% |
| Assessed value | $47,000 |
| Example Pulaski County millage | ≈ 63 mills combined |
| Estimated annual tax before credit | $47,000 × 6.3% ≈ $2,961* |
*Illustrative millage-based math only; the live calculator above uses Pulaski’s actual effective rate applied directly to price for a more reliable estimate, since effective rates already net out the assessment ratio and local millage together.
The $600 Homestead Credit most eligible owners already qualify for
Following Act 330 of 2025, Arkansas’s Homestead Property Tax Credit under Amendment 79 rose to $600 a year, applied directly against the tax bill of an owner-occupied primary residence, not as a reduction to assessed value. It’s not automatic in every county; homeowners typically need to file with the county assessor once when they establish a homestead. The toggle above applies this credit directly to your estimated annual tax, since it’s one of the more meaningful, broadly available reductions in the state.
The Amendment 79 freeze for seniors and disabled homeowners
Separately from the homestead credit, Amendment 79 also lets homeowners 65 and older, or those with a qualifying disability, freeze their home’s assessed value at the level it stood when they first qualified. Like similar freeze programs in other states, this doesn’t lower this year’s bill by itself; it protects against future increases as the county’s overall values climb, which compounds into real savings the longer a qualifying owner stays in the home. Disabled veterans rated 100% service-connected may also qualify for a full property tax exemption on their homestead under a separate Arkansas program.
Arkansas’s transfer tax: modest, and almost always the seller’s cost
Arkansas charges a real property transfer tax of $3.30 per $1,000 of sale price, roughly 0.33%, customarily paid by the seller though it’s technically negotiable by contract. It’s a modest cost compared to many states, and it doesn’t show up anywhere in your monthly mortgage payment as a buyer, but it’s a real number worth knowing before you’re the one selling.
Common Mistakes Arkansas Buyers Make With the Numbers
- Applying a national average property tax rate. Arkansas’s 20% assessment ratio and generally modest millage rates keep effective rates well below the national median in most counties.
- Forgetting to file for the Homestead Credit. The $600 annual credit isn’t automatic in every county and must be filed with the assessor.
- Assuming the Amendment 79 freeze lowers this year’s bill. It protects against future increases; it isn’t an immediate discount.
- Confusing the transfer tax with an ongoing cost. It’s a one-time, typically seller-paid closing charge, not a recurring bill like property tax.
- Not comparing millage across nearby school districts. Two homes a few miles apart, even within the same county, can carry different combined rates.
Tips for Lowering Your Arkansas Mortgage Payment
- File for the Homestead Property Tax Credit as soon as you close; it’s one of the broadest, easiest reductions available in the state.
- If a borrower on title is 65 or older or qualifies by disability, ask the county assessor about the Amendment 79 assessed-value freeze right away, since the benefit compounds the earlier it starts.
- Compare rate quotes from at least three lenders active specifically in Central and Northwest Arkansas, since local pricing can differ from national averages.
- Ask about millage differences between nearby school districts before settling on a specific neighborhood.
- Use the extra-payment scenario above; even a modest additional principal payment compounds meaningfully over a 30-year Arkansas loan.
Frequently Asked Questions
How is property tax calculated in Arkansas?
Arkansas assesses homes at 20% of full market value, then applies the local combined county, city, and school district millage rate to that smaller assessed value.
How much is property tax in Arkansas?
Arkansas’s statewide effective property tax rate runs well below the national average, with Pulaski and Benton counties posting the highest effective rates among the state’s major counties and Washington County running noticeably lower.
What is the Arkansas Homestead Property Tax Credit?
A credit of $600 a year, following 2025’s Act 330, applied directly against the property tax bill of an owner-occupied primary residence. It must be filed with the county assessor.
What is the Amendment 79 assessment freeze?
A program letting homeowners 65 and older, or those with a qualifying disability, freeze their home’s assessed value at the level when they first qualified, protecting against future increases.
Does Arkansas have a real estate transfer tax?
Yes, a state real property transfer tax of $3.30 per $1,000 of sale price, about 0.33%, customarily paid by the seller.
Which Arkansas county has the lowest property tax rate?
Among the state’s larger counties, Washington County generally runs a lower effective rate than Pulaski or Benton, though many smaller rural counties run even lower rates statewide.
What down payment do I need to buy a home in Arkansas?
Conventional loans often start around 5% down, FHA loans typically require 3.5%, and VA loans can allow 0% down for eligible veterans.
When can I remove PMI on an Arkansas home loan?
Federal law allows requesting PMI removal at 20% equity, with automatic lender cancellation at 22% equity based on the original amortization schedule.
Do disabled veterans get a property tax break in Arkansas?
Yes, veterans with a 100% service-connected disability rating may qualify for a full property tax exemption on their homestead under a separate Arkansas exemption program.
Does this calculator include closing costs?
No, this tool estimates the ongoing monthly payment only. Arkansas closing costs, including title insurance and the transfer tax for sellers, typically add a modest percentage of the purchase price.
References
- Arkansas Department of Finance and Administration, Real Property Transfer Tax and Assessment Coordination Division guidance – dfa.arkansas.gov
- Pulaski, Benton, Washington, and Faulkner County Assessor offices, millage rates and Homestead Credit applications – county government sites
- Arkansas Constitution, Amendment 79, homestead credit and assessed-value freeze provisions
- Freddie Mac Primary Mortgage Market Survey, weekly national rate averages – freddiemac.com/pmms
Related DexoCalc Tools
This Arkansas mortgage calculator is part of the Mortgage Calculators cluster I am building out on DexoCalc. Start with the national Mortgage Calculator to compare Arkansas against any other state, see another 20%-versus-10% assessment-ratio state in the Alabama Mortgage Calculator, compare a similar assessment-ratio approach out west in the Arizona Mortgage Calculator, see how a neighboring lower-tax Southern state handles revaluation differently in the North Carolina Mortgage Calculator, or see a much higher-tax state that also uses a flat dollar credit in the Delaware Mortgage Calculator. Browse every state-specific tool as new ones publish on the full Mortgage Calculators hub.
This calculator provides estimates for educational purposes only and is not a loan offer, pre-approval, or substitute for advice from a licensed Arkansas mortgage professional or tax advisor. Property tax, credit, and transfer tax figures are approximations that vary by county and individual circumstances; confirm exact figures with your county assessor. Sources: Arkansas DFA, county assessor offices, Freddie Mac.