Arkansas Homestead Property Tax Credit Guide 2025: How Homeowners Can Save 425 Dollars Every Year

If you own a home in Arkansas and you are not getting the Homestead Tax Credit, you are almost certainly leaving money on the table.

This is not a sweepstakes, not a lottery, and not a complicated grant application. It is a built‑in $425 annual credit against the school portion of your property tax bill, written into the Arkansas Constitution. You claim it once with your county assessor, and then it quietly shows up every year.

For a lot of homeowners, that $425 does real work. It can cover a month of utilities, several bags of groceries, or the difference between your escrow going up or staying put this year. And if you have a mortgage, your lender should be lowering what they collect for taxes once this credit is in place.

Here is the frustrating part: thousands of eligible Arkansas homeowners still are not getting it.

Some assume it happens automatically when they buy a house. Some have lived in the same home for years and simply never heard of it. Others moved, refinanced, or transferred property into a trust and accidentally knocked the credit off their record.

So this guide is your nudge to fix that.

We will walk through who qualifies, how it actually works, what paperwork you need, and how to avoid common mistakes that trigger penalties. If you own and live in a home in Arkansas, you should be checking right now whether that $425 is showing up on your tax bill.

Arkansas Homestead Tax Credit at a Glance

What This Property Tax Credit Actually Offers

Think of the Homestead Tax Credit as the state quietly picking up $425 of your school district tax bill every year on your primary home.

The credit does not reduce every line on your bill. It is targeted specifically at the school property tax portion. School taxes are often the largest single piece of your annual bill, so this feels like trimming the top off the biggest number.

Here is what that looks like in practice:

• If your total property tax bill is $1,800 and $1,200 of that is school taxes, the state steps in and pays $425 of that $1,200.
• Your bill drops to $1,375.
• If you pay through a mortgage escrow account, your lender is suddenly collecting less from you each month.

The money does not vanish for the schools, either. The Arkansas Department of Finance and Administration (DFA) reimburses school districts using state sales tax revenues. In other words, your local school district still receives the full amount it is owed; you just personally owe $425 less.

A few other practical perks:

• It repeats every year once you are on file with the assessor, as long as your property remains your principal residence and you stay eligible.
• It is not income-based. A retiree on Social Security and a high‑earning professional both get the same $425 if they meet the residency and ownership rules.
• It stacks with other protections. If you qualify for the senior value freeze or benefit from the 5 percent cap on assessed increases, you can still take the homestead credit on top.

Treat this as a permanent discount on living in your own home. You only need to ask for it once, but you do need to ask.

Who Should Apply for the Arkansas Homestead Credit

If you own a home in Arkansas and actually live in it most of the year, you are almost certainly the target audience.

More formally, you are a good fit if:

• The property is your principal residence. This is the address where you sleep most nights, vote, receive mail, and list on your driver license.
• You have legal ownership of the property. That could be in your name, jointly with a spouse or partner, or in a revocable trust where you are the beneficiary.
• The property is located in Arkansas and on the books as real property with the county.
• You are claiming the homestead credit on only one property statewide.

Here are a few real‑world examples:

• Young family in a starter home
  You bought a small house in Washington County last year. You live there full‑time, changed your driver license address, and pay the property tax bill through your mortgage escrow. You should apply for the homestead credit on that address only.

• Senior living on a fixed income
  You have owned your home in Jefferson County for 25 years and receive Social Security. Income does not matter here. You can (and should) claim the homestead credit and also ask about the senior assessed value freeze.

• Manufactured home owner
  You own a manufactured home that is permanently affixed to a lot being taxed as real property. As long as it is your primary residence and the county treats it as real property, you are eligible for the credit on that tax parcel.

• Property in a revocable trust
  You placed your home into a living trust for estate planning, but you still live there and control the trust. Bring the trust documents to the assessor to show you are the beneficial owner. You can still claim the credit.

Who should not expect to qualify:

• Owners of rental properties, even if they are in-state.
• Vacation homes, lake houses, and weekend cabins.
• Second homes you occasionally occupy for work but are not your primary residence.
• Anyone trying to claim multiple homestead credits across counties or properties.

If you and your spouse jointly own more than one home, you must pick one property to receive the homestead credit. You cannot split the $425 between homes, and you definitely cannot double dip.

How the Homestead Credit Works Behind the Scenes

A bit of mechanics helps you make sure the credit is actually working for you.

1. You apply with the county assessor where your home is located.
2. The assessor flags that parcel as a qualifying homestead.
3. When annual tax bills are generated, the system subtracts up to $425 from the school tax portion of your bill.
4. You see a line like “Homestead Credit” or “State Credit” on the bill, usually as a negative amount.
5. DFA later reimburses your local school district for that $425 using state funds.

The key takeaway: this is not a rebate check a year later. It shows up directly on the bill that is mailed (or provided electronically) each year.

Your mortgage company should respond to this credit too. If your lender escrows taxes, they estimate next years tax bill. Once the credit appears, you can:

• Send your lender a copy of the tax bill that clearly shows the homestead credit.
• Ask them to recalculate escrow based on the lower amount due, rather than continuing to overcollect.

Otherwise, you might overpay into escrow all year and wait months for a refund check.

Insider Tips for a Winning (and Hassle-Free) Application

There is nothing competitive about this program – if you qualify, you get it. But there are definitely smart ways to handle the process so you do not run into delays or headaches.

1. Apply the same week you close on the house

When you buy a home, you are usually already visiting or dealing with the assessor for value, deed recording, or tax questions. Use that same trip to register your homestead.

Show them:

• Your deed or closing statement
• Your Arkansas driver license or other residency proof

This way, you do not wake up next year staring at a full tax bill with no credit because you assumed it happened automatically.

2. Bring more documentation than you think you need

County offices each have their own habits. Some are happy with a deed and driver license; others prefer an extra utility bill or voter registration card.

Bring a small packet:

• Recorded deed or closing disclosure
• Arkansas driver license with the property address (or receipt showing it is being updated)
• Recent utility bill showing your name and that address
• Trust paperwork if the property is held in a revocable trust
• For manufactured homes, a bill of sale plus documentation that it is taxed as real property

Showing up prepared often means you walk out with everything handled in one visit.

3. Beat the October 15 cutoff by weeks, not hours

To get the credit on next year’s tax bill, you must be on the assessor’s books by October 15.

Waiting until the last few days creates a perfect storm: busy offices, paperwork mishaps, or mail that arrives just a hair too late. Aim to apply no later than mid‑September. That gives everyone breathing room and gives you time to troubleshoot if something goes missing.

4. Always check your tax bill every single year

Do not assume that once you are in the system, nothing can ever go wrong.

When your bill arrives (usually by March 1, with payment due by October 15):

• Look for a line item that clearly references Homestead Credit, State Credit, or similar wording.
• Make sure the amount is $425 (or up to that amount if your school tax is lower).

If it is missing, call the assessor immediately. Sometimes a change in ownership, refinance, parcel split, or clerical glitch can knock the homestead flag off your property.

5. Keep your story consistent

The address on your tax bill, driver license, voter registration, and homestead form should all tell the same story: this is where you live.

If the assessor sees that you claim a different state as your residence for driver licensing or income tax, they may question whether this Arkansas property is truly your principal residence.

Application Timeline: Working Backward from October 15

The hard statewide date you should keep in mind is October 15. That is both:

• The deadline to apply for your credit to show up on the next tax bill, and
• The due date for most property tax bills themselves.

Here is a practical timeline to stay ahead of it:

March – June: Check and verify

When the annual property tax bills go out (generally by March 1), take these steps:

• Confirm whether you already have the homestead credit.
• If you do not see it, contact the assessor right away. You may be able to get it corrected before payment is due.
• If you just bought a home, ask the assessor what they need from you and whether your homestead status is already recorded.

July – August: Gather paperwork

If you are not yet enrolled:

• Assemble your deed, ID, and residency documents.
• If you recently moved or changed your license address, give the new license time to arrive so it matches the property address.
• Look up your county assessor’s office hours and whether they offer online or mail‑in forms.

September: Submit the application

This is the sweet spot:

• Visit the assessor’s office in person if possible.
• Complete the homestead application form, sign any affidavit, and provide copies of your documents.
• Ask the clerk to confirm that the credit will be active for the next billing cycle.

Keep any receipts, stamped forms, or confirmation letters.

Early October: Double‑check status

Before October 15:

• Call or email the assessor to confirm your application is processed and the homestead flag is on your parcel.
• If something went sideways (lost mail, missing signature), you still have a little time to fix it.

Following this timeline once saves you years of overpaying.

Required Materials and How to Prepare Them

Requirements can vary slightly by county, but most Arkansas assessors will expect some mix of the following:

• Proof of ownership
  This is usually your recorded deed, warranty deed, or closing statement. For manufactured homes, a bill of sale and proof that the home is taxed as real property may be needed.

• Proof of Arkansas residency at that address
  Often an Arkansas driver license, state ID, or voter registration card with the property address. Some counties accept a recent utility bill, bank statement, or similar document.

• Completed homestead application form
  A simple one‑ or two‑page form provided by your county. It will ask for the parcel number, property address, and a certification that it is your principal residence and you are not claiming another homestead elsewhere.

• Trust or legal documents (if applicable)
  If the property is held in a revocable trust, bring pages showing:

  • The trust name
  • That you are the grantor and/or beneficiary
  • That the trust holds this specific property

A few preparation tips:

• Make photocopies of everything and keep a folder at home. If you ever move or the county audits homestead claims, you will be glad you have it.
• Ask the assessor whether they need the original or if copies are acceptable, especially if mailing.
• If you apply by mail, consider certified mail or some form of tracking.

What Makes an Application Stand Out (in a Good Way)

Again, this is not a competitive program, but there are ways to make your file easy to approve and unlikely to be questioned later.

1. Clarity about primary residence
   Your documentation all points to this address as your main home. No conflicting out‑of‑state licenses, no ambiguous mailing addresses on key forms.

2. Complete, legible paperwork
   Every field on the form is filled, your signature is clear, and your parcel number is correct. Sloppy or half‑completed forms are where avoidable delays start.

3. Straightforward ownership
   If your situation involves trusts, life estates, or complex ownership structures, you provide enough documentation that the assessor can easily see you are the person actually living there and benefiting from the property.

4. Prompt reporting of changes
   When something changes – you move, you convert the property to a rental, you divorce and one spouse moves out – you tell the assessor within 30 days. That is not only required; it also prevents penalties.

5. Ongoing review of your bill
   People who glance at their bill each year and make sure the credit is present are far less likely to run into ugly surprises.

Assessors are not trying to trip you up. They are trying to apply the law fairly and consistently. The more your situation lines up neatly with the law’s intent – one owner‑occupied home, clearly documented – the smoother things go.

Common Mistakes to Avoid (and How to Fix Them)

Mistake 1: Assuming the credit is automatic when you buy

Buying a home does not mean the homestead credit magically appears. You have to register the property as your homestead with the assessor.

Fix: If you have owned your home for years and never remember signing anything about homestead, call the assessor and simply ask, “Is my parcel receiving the homestead credit?” If not, apply now. You cannot retroactively claim prior years, but you can stop overpaying going forward.

Mistake 2: Forgetting to report when you move or rent the house

If you move to another home, convert your house to a rental, or sell it, you must tell the assessor within 30 days. Continuing to claim the credit on a property that is no longer your principal residence can lead to repayment and penalties.

Fix: When you move, put “Call assessor about homestead” on the same checklist as changing utilities and updating your address with the post office.

Mistake 3: Claiming more than one homestead credit

Sometimes couples unintentionally claim a credit on two homes – for example, one spouse in one county, one in another. State law allows only one per taxpayer (and practically, one per household).

Fix: Decide which property is truly your primary residence and remove the credit from the other. If the county discovers double‑claiming first, expect back‑billing.

Mistake 4: Never reading the actual tax bill

Many people have their taxes paid through escrow and never really scrutinize the statement.

Fix: Once a year, sit down with your tax bill. Confirm:

• Is the homestead credit present?
• Is the amount correct (up to $425)?
• Is the property description accurate?

If the credit is missing, you still have time to fix it before the due date.

Mistake 5: Ignoring the senior freeze or assessment cap

The homestead credit is not the only property tax help under Amendment 79. Failing to ask about the 65+ assessed value freeze or the 5 percent cap on homestead assessment increases can cost you.

Fix: If you are 65 or older, or permanently disabled, ask the assessor directly: “Am I receiving the senior freeze, and is my homestead assessment protected under Amendment 79?” These protections stack with the $425 credit.

Frequently Asked Questions About the Arkansas Homestead Credit

Is there an income or asset limit for this credit?
No. Eligibility is based on ownership and principal residency, not your income or net worth. A homeowner with a modest pension and a homeowner with a high salary both receive the same $425 credit if they meet the requirements.

Do I need to reapply every year?
Typically no. Once your homestead is registered, the credit renews automatically each year as long as you still own and occupy the home and nothing in your status changes. You do, however, have a legal obligation to notify the assessor within 30 days if the property stops being your principal residence.

Can renters or tenants claim the homestead credit?
No. Only property owners who use the property as their principal residence can claim it. If you rent, the credit is not available directly to you, even if your landlord lives next door.

What happens if my school taxes are less than $425?
The credit can reduce the school tax portion of the bill down to zero, but it cannot create a negative balance or refund beyond that line. So if your school tax is $300, the credit will cover that full $300, but you will not receive extra money for the remaining $125.

Can I claim the credit on a duplex or property with a rental unit?
Yes, if you personally live in one part of the property as your principal residence. The homestead credit applies to the parcel as a whole. However, you still must comply with the single‑homestead rule and cannot claim it on another property.

What if the credit is not on my bill even though I applied?
Start with your county assessor. Ask whether your application was approved and whether your parcel is coded as a homestead. If it was an error, they may be able to issue a corrected bill or adjust your account. Act quickly; do not wait until after the October 15 payment deadline.

Does this credit help with special assessments or fees?
No. The credit reduces only the school district tax portion of your property bill. Other charges such as city or county levies, fire district fees, drainage assessments, or improvement district charges remain fully due.

Can I combine this with the senior value freeze?
Yes, and you should if you qualify. The senior/disabled freeze keeps your assessed value from rising (with some exceptions for improvements), while the homestead credit knocks $425 off the school tax every year. Together, they can keep your tax bill much more predictable as you age.

How to Apply for the Arkansas Homestead Property Tax Credit

Ready to claim your $425 annual discount? Here is a simple action plan:

1. Check your current status.
   Pull out your most recent property tax bill and look for a line that says something like “Homestead Credit” or “State Credit.” If you see it and the amount is $425 (or up to that amount), you are probably already enrolled. If you do not see it, move to step 2.

2. Find your county assessor.
   Look up the assessor’s office for your county to confirm office hours, forms, and whether they accept mail‑in or online applications.

3. Gather your documents.
   Set aside your deed or closing statement, Arkansas driver license or ID with the property address, and a recent utility bill. If your property is in a trust or is a manufactured home, gather those specific documents as well.

4. Submit the homestead application by October 15.
   Visit the assessor’s office (recommended) or follow their instructions to apply by mail or online. Ask for written confirmation or a receipt that your homestead has been recorded.

5. Verify the credit next billing cycle.
   When the next tax bill arrives, confirm that the homestead credit appears and that the amount is correct. If you escrow taxes through your mortgage, send a copy to your loan servicer and ask them to adjust your escrow for the lower tax.

Ready to dig into the official details or find relevant forms?

Visit the official Arkansas DFA Homestead Tax Credit page:
https://www.arkansas.gov/dfa/excise-tax/sales-and-use-tax/homestead-tax-credit

Take 30 minutes this year to get this credit set up, and your future self will quietly thank you every single time that tax bill lands in the mailbox.