The Arkansas Senate has approved a property tax cut to save Arkansas homeowners USD 56 million annually.
The tax reduction is in Senate Bill 263, which will take effect for assessment years beginning on or after 1 January 2025. It raises the homestead property tax credit by USD 100 to USD 600 yearly. The credit is currently USD 500.
About 708,000 homeowners will benefit from the lower real property taxes.
According to the Senate Bill 263’s fiscal impact statement, the enhanced property tax credit will provide USD 56 million in tax relief in 2026 and USD 56.8 million in 2027. This is the third year in a row that Arkansas has raised the credit. Lawmakers increased it from USD 375 to USD 425 in early 2023 and then to USD 500 in 2024.
Arkansas Governor Sarah Huckabee Sanders signed Senate Bill 263 on 18 March 2025, introducing the increase.