Arkansas homeowners may see a boost in property tax relief beginning with 2026 tax bills, thanks to an increase in the homestead tax credit and protections for seniors and disabled residents.
Under state law, homeowners can claim a homestead property tax credit of up to $600, an increase from the previous $500 limit. The credit applies to a person’s primary residence, including homes held in trusts, and must be claimed through the county assessor’s office.
Homeowners who are 65 or older, or who are disabled, may qualify for additional relief. These residents can “freeze” the taxable assessed value of their home at the value recorded at the next assessment after reaching 65 or becoming disabled. The freeze does not transfer to new owners if the property is sold. The value of properties may still rise if owners make substantial improvements or new construction is added.
Amendment 79, passed by voters, limits how much property values can increase following a county-wide reappraisal. Homestead properties may see a maximum 5% increase per year, while other properties, including commercial and agricultural land, are capped at 10% annually. Newly constructed or newly discovered property is exempt from the caps, as are substantial improvements adding 25% or more to a property’s value.
County assessors encourage homeowners who believe they are eligible for any of the relief programs to apply through their local office. Changes in local tax millage rates may still affect overall property tax bills.
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