February 4, 2026

Arkansas Homestead Tax Credit: How It Works and How to Claim It in 2026

Article Summary:

Arkansas tax rules continue to shift, and what you can deduct in 2026 may look different than you expect. From individual write-offs to business-related deductions, small changes in the law can have a real impact on what stays in your pocket. This guide breaks down the Arkansas tax deductions worth paying attention to now, so you can plan ahead and avoid costly surprises later.


Legal Topics

EMPLOYMENT LAW UPDATE: FEDERAL TRADE COMMISSION ELIMINATES NON-COMPETE CLAUSES

On Tuesday, the Federal Trade Commission issued a new Rule putting an end to employment-related non-compete clauses. In its justification for the rule, the FTC called non-compete clauses “an unfair method of competition” and stated it is a “violation for [employers] to… enter into non-compete clauses (“non-competes”) with workers.” In today’s very competitive labor market, the new FTC Rule creates a significant disruption for employers.

WHEN IS THE FTC ELIMINATION OF NON-COMPETE CLAUSES SET TO TAKE EFFECT?

This new FTC provision—set to take effect in 120 days—renders existing non-compete agreements unenforceable. Existing non-compete agreements with senior executives will remain enforceable, although employers cannot require newly hired senior executives to sign such an agreement.

WHAT REQUIREMENTS HAS THE FTC IMPOSED ON EMPLOYERS BY ELIMINATING NON-COMPETE CLAUSES?

After the Rule takes effect, employers are required to deliver personal notice to employees (past and present) who signed a non-compete agreement informing them agreements are no longer enforceable. In the notice, employers must inform employees they are free to accept any job or start any business, even if it is directly competitive with the employer.

IS THE FTC’S ELIMINATION OF THE NON-COMPETE CLAUSES OPTIONAL FOR EMPLOYERS?

Compliance with the FTC Rule is not optional. Employers should consider new ways they can protect against a former employee gaining a competitive advantage by using the employer- provided training, the relationships made possible by the employer, or the confidential information learned from the employer. RMP can assist you in navigating this disruption and can provide advice on how to most effectively protect your vital business interests going forward.

RMP: Your Employment Law Attorneys

RMP Attorneys At Law has an experienced Employment Law Attorney team dedicated to helping you navigate these changes. If you have any questions or would like guidance, reach out to one of our employment attorneys, Tim Hutchinson, Seth Haines, Larry McCredy, or Taylor Baltz or call  479.443.2705.

If you own a home in Arkansas, the homestead property tax credit can directly reduce the amount of property tax you owe each year. Yet many homeowners miss it entirely or lose it because of paperwork issues, ownership changes, or simple misunderstandings.

This guide explains how the Arkansas homestead tax credit works, who qualifies, how to claim it for 2026, and common mistakes to avoid.

🔗 Arkansas DFA – Property Tax Relief
https://www.dfa.arkansas.gov/office/arkansas-assessment-coordination-division/real-property/property-tax-relief/

Brick house located in North West Arkansas with homestead credit, surrounded by a grassy field, with trees in the background and blue sky above.

What Is the Arkansas Homestead Tax Credit?

The Arkansas homestead property tax credit is established by Arkansas Code § 26-26-1118. The credit is a property tax credit of up to $600 applied against the real property taxes assessed on a property owner’s primary residence. It is not an income tax deduction. Instead, it reduces your annual property tax assessment.

The credit is administered at the county level through the assessor’s office and applies only to a dwelling which is used as your principal place of residence.

Homeowners who are either age 65 or older or who are disabled may be eligible for additional relief with respect to property tax on their homestead.

Who Qualifies for the Homestead Credit?

You may qualify if:

  • You own the property
  • The property is your primary residence
  • Neither you nor your spouse claim an Arkansas homestead property tax credit with respect to another property

Ownership can include:

  • Record ownership in the property owner’s individual name
  • Ownership by a revocable or irrevocable trust if the settlor or the beneficiary uses the property as their principal place of residence s
  • Ownership through a limited liability company whose members are either a married couple or just one natural person who uses the property as their principal place of residence
  • A buyer’s interest in the property under a recorded purchase agreement
  • A life estate in the property

The credit does not apply to:

  • Commercial or investment property
  • Rental properties
  • Second homes

How Much Is the Homestead Credit in 2026?

The Arkansas Legislature just recently increased the Arkansas homestead property tax credit to $600. Accordingly, eligible homeowners may receive up to $600 off their property tax assessment. The exact benefit depends on the amount of tax assessed on the property, but the credit cannot reduce the assessment to less than zero dollars

The credit applies automatically once properly claimed and remains in place until there is a change in ownership, use, or eligibility.

How to Claim the Arkansas Homestead Tax Credit

To claim the credit, you must apply through your county assessor’s office.

Typical steps include:

  1. Completing the county’s homestead credit application
  2. Providing proof of ownership and residency
  3. Filing before the deadline

State law requires filing for the credit no later than October 15 following the year of assessment for the credit to apply.

Common Reasons Homeowners Lose the Credit

The homestead credit is frequently lost due to avoidable issues, including:

  • Moving without updating the assessor’s office
  • Transferring property to a trust without reapplying for the credit
  • Adding or removing an owner from the deed
  • Death of a homeowner
  • Using the property as a rental

These situations often arise during estate planning, probate, or real estate transfers.

Homestead Credit and Trust-Owned Property

Placing a home in a trust does not automatically disqualify the property from the homestead credit. However, the trust must meet specific requirements, and the credit may need to be re-applied for after the transfer.

Failure to update the assessor’s office can result in the credit being removed.

Why This Matters

The homestead credit can save Arkansas homeowners hundreds of dollars each year. Failing to apply for the credit is a lost opportunity for savings, and losing the credit can increase property taxes unexpectedly. Property owners should pay careful attention to ownership changes to ensure they qualify and remain eligible for the homestead property tax credit with respect to their primary residence.

When to Talk to an RMP Tax Attorney

You may want legal guidance if:

  • You are transferring property to a trust
  • A homeowner has passed away
  • You are buying or selling your primary residence
  • You received notice that the credit was removed

Contact RMP Law

RMP Law helps Arkansas homeowners with estate planning, real estate transfers, and tax planning impacted by property ownership. If you have questions about the Arkansas homestead property tax credit or how property ownership changes may affect your taxes, contact RMP Law at 479-443-2705 or use our Message Us form.


Contact RMP Law Today

Main RMP Number: 479-443-2705

Bentonville – 479-553-9800
Jonesboro – 870-394-5200
Little Rock – 501-954-9000

Message Us



RMP Business Law Attorney Arkansas

If you own a home in Arkansas, the homestead property tax credit can directly reduce the amount of property tax you owe each year. Yet many homeowners miss it entirely or lose it because of paperwork issues, ownership changes, or simple misunderstandings.

This guide explains how the Arkansas homestead tax credit works, who qualifies, how to claim it for 2026, and common mistakes to avoid.

🔗 Arkansas DFA – Property Tax Relief
https://www.dfa.arkansas.gov/office/arkansas-assessment-coordination-division/real-property/property-tax-relief/

Brick house located in North West Arkansas with homestead credit, surrounded by a grassy field, with trees in the background and blue sky above.

What Is the Arkansas Homestead Tax Credit?

The Arkansas homestead property tax credit is established by Arkansas Code § 26-26-1118. The credit is a property tax credit of up to $600 applied against the real property taxes assessed on a property owner’s primary residence. It is not an income tax deduction. Instead, it reduces your annual property tax assessment.

The credit is administered at the county level through the assessor’s office and applies only to a dwelling which is used as your principal place of residence.

Homeowners who are either age 65 or older or who are disabled may be eligible for additional relief with respect to property tax on their homestead.

Who Qualifies for the Homestead Credit?

You may qualify if:

  • You own the property
  • The property is your primary residence
  • Neither you nor your spouse claim an Arkansas homestead property tax credit with respect to another property

Ownership can include:

  • Record ownership in the property owner’s individual name
  • Ownership by a revocable or irrevocable trust if the settlor or the beneficiary uses the property as their principal place of residence s
  • Ownership through a limited liability company whose members are either a married couple or just one natural person who uses the property as their principal place of residence
  • A buyer’s interest in the property under a recorded purchase agreement
  • A life estate in the property

The credit does not apply to:

  • Commercial or investment property
  • Rental properties
  • Second homes

How Much Is the Homestead Credit in 2026?

The Arkansas Legislature just recently increased the Arkansas homestead property tax credit to $600. Accordingly, eligible homeowners may receive up to $600 off their property tax assessment. The exact benefit depends on the amount of tax assessed on the property, but the credit cannot reduce the assessment to less than zero dollars

The credit applies automatically once properly claimed and remains in place until there is a change in ownership, use, or eligibility.

How to Claim the Arkansas Homestead Tax Credit

To claim the credit, you must apply through your county assessor’s office.

Typical steps include:

  1. Completing the county’s homestead credit application
  2. Providing proof of ownership and residency
  3. Filing before the deadline

State law requires filing for the credit no later than October 15 following the year of assessment for the credit to apply.

Common Reasons Homeowners Lose the Credit

The homestead credit is frequently lost due to avoidable issues, including:

  • Moving without updating the assessor’s office
  • Transferring property to a trust without reapplying for the credit
  • Adding or removing an owner from the deed
  • Death of a homeowner
  • Using the property as a rental

These situations often arise during estate planning, probate, or real estate transfers.

Homestead Credit and Trust-Owned Property

Placing a home in a trust does not automatically disqualify the property from the homestead credit. However, the trust must meet specific requirements, and the credit may need to be re-applied for after the transfer.

Failure to update the assessor’s office can result in the credit being removed.

Why This Matters

The homestead credit can save Arkansas homeowners hundreds of dollars each year. Failing to apply for the credit is a lost opportunity for savings, and losing the credit can increase property taxes unexpectedly. Property owners should pay careful attention to ownership changes to ensure they qualify and remain eligible for the homestead property tax credit with respect to their primary residence.

When to Talk to an RMP Tax Attorney

You may want legal guidance if:

  • You are transferring property to a trust
  • A homeowner has passed away
  • You are buying or selling your primary residence
  • You received notice that the credit was removed

Contact RMP Law

RMP Law helps Arkansas homeowners with estate planning, real estate transfers, and tax planning impacted by property ownership. If you have questions about the Arkansas homestead property tax credit or how property ownership changes may affect your taxes, contact RMP Law at 479-443-2705 or use our Message Us form.


Contact RMP Law Today

Main RMP Number: 479-443-2705

Bentonville – 479-553-9800
Jonesboro – 870-394-5200
Little Rock – 501-954-9000

Message Us



RMP Business Law Attorney Arkansas

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