Homestead Tax Credit

How it works

The Arkansas Department of Finance and Administration says homeowners in Arkansas may receive a homestead property tax credit. The credit is currently up to $500 per year. Beginning with the 2026 tax bills, the General Assembly has authorized an increase up to $600.

What it covers

The credit applies to the homeowner’s “homestead,” defined on the page as the dwelling used as the person’s principal place of residence. This is a property tax relief benefit, not a reimbursement program for mitigation, repairs, or disaster-hardening projects.

Amounts and timing

• Current credit: up to $500 per year.
• Authorized increase: up to $600 beginning with the 2026 tax bills.
• Property owners may claim only one homestead tax credit each year.

How to apply

Homeowners must apply for the credit with the county assessor’s office. The page directs homeowners to contact their county assessor if they think they may be eligible.

Important notes

• The homestead property may be owned by a revocable or irrevocable trust.
• The page says nursing home or retirement center residents who still own their residence may continue to qualify under certain circumstances.
• People who deeded their homes to another person but continue to live there as their principal residence may continue to qualify if they retain a recorded life estate in the property.