Arkansas Property Taxes and How Mortgage Escrow Works

How Arkansas property-tax assessment works and what your escrow account does.

Arkansas property tax basics

Arkansas assesses residential property at 20% of market value. Local millage rates (set by counties, cities, school districts) are then applied to that assessed value.

Amendment 79 protection

Arkansas voters passed Amendment 79 in 2000, which caps annual assessed-value increases on owner-occupied homes at 5% per year. Your Arkansas property tax bill grows slowly even in appreciating markets.

How escrow works

Your lender collects 1/12 of your annual property tax and homeowners insurance each month, holds it in an escrow account, and pays the tax and insurance bills when they come due.