Arkansas offers two primary tools to reduce your property tax bill: the $375 homestead property tax credit and the annual property tax appeal process. Many Arkansas homeowners know about the homestead credit but do not realize they can also appeal their assessed value. Both approaches are complementary — they work on different parts of your tax calculation and should be used together for maximum savings.
How the Arkansas $375 Homestead Credit Works
Arkansas Act 1893 of 2003 created a property tax credit of $375 per year for qualifying homestead properties. A homestead is a property you own and occupy as your primary residence. The credit is applied directly to your tax bill — reducing what you owe by $375. Unlike the assessment process, the credit is a flat dollar amount regardless of your property's value or the millage rate in your area.
- ✓Amount: $375 per year credit applied directly to your tax bill
- ✓Eligibility: Must own and occupy the property as your primary residence
- ✓Application: File with your county assessor — typically a one-time application
- ✓Automatic renewal: Once approved, the credit renews automatically each year
- ✓Not means-tested: Available to all qualifying homeowners regardless of income
How an Arkansas Property Tax Appeal Works
A property tax appeal challenges your county assessor's estimate of your property's market value. In Arkansas, assessed value is set at 20% of market value — so reducing market value proportionally reduces assessed value and your tax bill. Unlike the homestead credit, which is a fixed $375, a successful appeal can produce savings proportional to the over-assessment and the millage rate in your area.
- ✓Target: Reduces appraised market value — from which assessed value is derived
- ✓Variable savings: Depends on amount of over-assessment and your millage rate
- ✓Annual opportunity: File each year — window opens approximately June 1, closes August 17
- ✓No filing fee: Arkansas BOE appeals are free
- ✓Evidence required: Comparable sales, condition documentation, property record errors
Which Saves More?
For most Arkansas homeowners with a significant over-assessment, the appeal saves more. The homestead credit is a fixed $375 regardless of how much your assessment is wrong. An appeal that reduces market value by $50,000 saves $150 per year at a 0.6% effective rate — less than the credit — but on larger reductions or in higher-rate areas, the appeal savings exceed the credit. In all cases, the right strategy is to use both: apply for the homestead credit AND file an annual appeal.
- ✓$375 homestead credit: Fixed regardless of property value — saves exactly $375/year
- ✓$50,000 appeal reduction at 0.6%: Saves $300/year on its own — plus adds to baseline
- ✓$100,000 appeal reduction at 0.6%: Saves $600/year — larger than homestead credit
- ✓NWA high-value properties: Large dollar reductions possible; appeal savings can substantially exceed the credit
- ✓Best strategy: Apply for homestead credit AND file an annual appeal — both reduce your bill
TaxAppeal USA: $89 Flat Appeal, You Keep Everything Else
TaxAppeal USA handles the property tax appeal for $89 flat. Apply for the homestead credit separately through your county assessor — it is free. Using both tools, Arkansas homeowners can reduce their property tax bill to the minimum supported by current market evidence.
Frequently Asked Questions
What is the Arkansas homestead property tax credit? ▾
A $375 annual credit applied directly to the property tax bill of qualifying Arkansas homeowners who own and occupy their home as their primary residence.
How do I apply for the Arkansas homestead credit? ▾
Contact your county assessor's office. The application is typically a one-time filing. Once approved, the credit renews automatically.
Can I get both the homestead credit and appeal my assessment? ▾
Yes. The homestead credit and the appeal process work on different parts of your tax calculation. Use both for maximum savings.
Does the homestead credit affect my assessment? ▾
No. The $375 credit is applied to your final tax bill — it does not change your assessed or market value.
Does an appeal affect my homestead credit? ▾
No. A successful appeal reduces your market and assessed values, which reduces your tax bill before the credit is applied. Both reductions stack.
When should I apply for the homestead credit? ▾
As soon as you purchase and occupy your primary residence. Contact your county assessor. There is no specific deadline for the homestead credit application, but applying before assessment season ensures the credit is applied to your current year's bill.