AR · #33 by population

Buying a home in Arkansas

Costs and rules that are specific to Arkansas. Main city: Little Rock.

In short

Arkansas taxes property sales through its real property transfer tax, does not require an attorney at closing and has no general seller disclosure form (buyer beware). It allows both court and out-of-court foreclosure and is not a community property state. Deadline to appeal a property tax assessment: last day to schedule a hearing is the third Monday in August.

Calculate for Arkansas

If you buy

Arkansas state transfer tax

Real property transfer tax (documentary stamps): $3.30 per $1,000 of actual consideration, on transactions above $100. Change the price: the amount is recalculated instantly.

Price$215,600
State transfer tax$711.48
Share of the price0.33% of the price
Who paysSet by the purchase contract

Default price: the Arkansas median value of owner-occupied homes, $215,600 (Census ACS 2024). Rule: Price divided by 1,000, times $3.30. Applies only when consideration exceeds $100. The pages read do not say how prices that are not multiples of $1,000 are rounded. Who pays: The DFA pages read do not say whether buyer or seller bears the tax; the contract allocates closing costs. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Arkansas transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Arkansas state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Arkansas in short

Is there a real estate transfer tax in Arkansas?

Arkansas charges a state real property transfer tax of $3.30 per $1,000 of actual consideration on transactions above $100, which is $660 on a $200,000 sale. It is paid by buying documentary stamps for the deed.

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How much is the state transfer tax on a $215,600 home in Arkansas?

On $215,600, the median value of owner-occupied homes in Arkansas (Census ACS 2024), the state real property transfer tax comes to $711.48 ($3.30 per $1,000 of actual consideration, on transactions above $100). County and city taxes are not included.

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What closing costs does Arkansas law set?

Arkansas has no official typical closing-cost total. The state transfer tax is $3.30 per $1,000 of consideration ($660 on a $200,000 sale) and Pulaski County recording is $15 for the first page plus $5 per added page.

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How is property tax calculated in Arkansas?

Arkansas taxes 20% of a property's market value at the local millage rate. Little Rock publishes 70.5 mills (1.41% effective rate), or $2,820 a year on a $200,000 home before credits.

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What is the deadline to appeal a property tax assessment in Arkansas?

In Arkansas, contact the county assessor first, and for a formal dispute schedule a hearing with the County Board of Equalization no later than the third Monday in August.

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Do you need a real estate attorney to close in Arkansas?

No Arkansas statute or rule read requires an attorney to attend or conduct a residential closing, but agents may fill in blanks only on attorney-approved forms for simple transactions (17 CAR 220-1009(c), Pope County Bar Association v. Suggs).

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What must a home seller disclose in Arkansas?

Arkansas has no disclosure statute for individual owner-sellers, according to the Arkansas Real Estate Commission, so no state law requires a seller to deliver a condition report. Licensed agents must disclose material facts they know or should know (Ark. Code 17-42-316).

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How does foreclosure work in Arkansas?

Most Arkansas mortgage foreclosures can run without a court under the Statutory Foreclosure Act of 1987, and the sale cannot take place until at least 60 days after the notice of default is recorded. The Act creates no right of redemption after the sale.

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What first-time home buyer programs does Arkansas offer?

The Arkansas Development Finance Authority (ADFA) offers the StartSmart first-time buyer mortgage, with a $500,000 price limit and a 640 minimum credit score, plus a down payment second mortgage of $1,000 to $15,000.

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How much tax when you sell a home in Arkansas?

The federal rule is the same in Arkansas as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. Arkansas income tax on the gain is not computed here.

Capital gains on a home sale

Arkansas guides

Little Rock

Buying a home in Little Rock, Arkansas

Professionals in Arkansas

All states · Federal guides