In Arkansas, avoiding property tax is generally limited to specific exemptions like 100% disabled veterans, or tax relief for homeowners aged 65+ or disabled (under 65), which can freeze taxable value or provide credits up to $350-$600. Exemptions apply to churches, cemeteries, and public charity, rather than personal residential property.
Property owned by the federal, state, county, or municipal government is generally not subject to taxation. Ark. Code Ann. § 26-3-306 exempts homestead and personal property taxes for 100% totally and permanently disabled veterans, as determined by the VA on an annual basis.
Most states have a homestead property tax exemption that allows you to protect a certain amount of your primary property's value from taxes. You can structure the exemption to either exclude a flat amount or a percentage of your taxable value.
Apply by submitting a copy of the IRS Determination Letter, the first two pages of IRS Form 1023, and a statement declaring exemption under ACA 26-51-303 or ACA 26-51-309. Organizations without an IRS Determination Letter should submit Form AR1023CT, a copy of the articles of incorporation, and a copy of the bylaws.
What happens if I do not pay my REAL ESTATE property taxes? By law, if real estate taxes are not paid for two years, it will be certified to the Arkansas Commissioner of State Lands to be sold for taxes.
You can deduct these expenses whether you take the standard deduction or itemize:
Arkansas allows you take a subtraction for your pension income for up to $6,000 on your state return. If you are filing as married filing jointly and your spouse receives a pension as well, you are both entitled to a $6,000 exemption on your Arkansas return for your pension income.
Veterans with a 100% disability rating are fully exempt from property taxes. 70% to 99% may receive a $12,000 exemption from their property's taxable value.
You generally don't have to pay taxes if your income is less than the standard deduction or the total of your itemized deductions, if you have a certain number of dependents, if you work abroad and are below the required thresholds, or if you're a qualifying non-profit organization.
Key Findings. Property taxes currently generate 70 percent of all local tax. revenue, some or all of which would have to be replaced with other taxes under property tax. Property taxes are the single largest source of state and local revenue in the U.S. and help fund schools, roads, police, and other services.
Sadly for investors, the answer is no, there are no states without property tax. This is because property tax is a useful way for local governments to fund public services such as schools, fire and police departments, infrastructure and libraries.
State and local real property taxes are generally deductible. Deductible real property taxes include any state or local taxes based on the value of the real property and levied for the general public welfare.
Age 65 or Disabled Homeowner Property Tax Relief.
The Freeze does not freeze your taxes, it freezes your Taxable Value. When you reach the age of 65 (or if you are older) you qualify for a Freeze. This also applies if you are on Social Security Disability.
Review your property tax card for errors, since inaccurate details can raise your bill, and file an appeal if the assessment seems too high. Check for local or state exemptions that might lower your costs, and avoid major improvements before an assessment so your home's value doesn't rise unnecessarily.
The $250,000/$500,000 home sale tax exclusion - If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse.
The total amount of deductible state and local income taxes, including property taxes, is limited to $40,000 for tax years 2025 through 2028, but is subject to reduction depending on your income level. For tax years 2019 through 2024, the deduction is limited to $10,000.
Property Tax Exemption
State tax penalties can be just as harsh as those imposed by the IRS. In the most severe cases, the state can even prosecute you for a crime if it believes that your failure to file tax returns was part of a fraudulent scheme. Just like other crimes, the punishment can include time in jail.
If you have a permanent residence in Arkansas and spend more than six months (183 days) in the state, you will be considered a resident. Temporary stays don't count as a permanent place of abode.
What it really is, is a tax deduction you can claim instead of your actual expenses. The $1000 deduction equates to less than $300 in tax refund dollars for an average Australian worker who clicks to claim this deduction. However, for many people, claiming the $1000 instant deduction could mean a smaller tax refund.