With a 4.4% top income tax rate and 0.62% property tax, Arkansas homeowners face a moderate combined tax burden. This calculator is pre-filled with Arkansas numbers: $195,000 median price, 0.62% property tax, $1,900/year insurance.
Last updated: March 13, 2026
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Monthly Payment (Arkansas)$0
Loan Details — Arkansas
Arkansas median: $195,000
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Below 20% triggers PMI on conventional loans
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Average 30-year fixed ~6.75% (March 2026)
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Arkansas average: 0.62%
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Arkansas average: $1,900/yr
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Property Tax
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Arkansas Metro Area Home Prices
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Yearly Amortization Schedule+
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Arkansas's Tax Landscape and Your Mortgage
Arkansas uses a progressive income tax with a top rate of 4.4%. A household earning $150,000 pays an estimated $4,290-$5,610 in state income tax, depending on filing status and deductions. That's $413/month less available for housing costs.
At the state's median home price of $195,000, the $0.62% property tax rate adds $101/month to your mortgage payment. That's $1,209/year — below the national median of ~1.1%.
Property Taxes Across Arkansas
The 0.62% statewide average masks significant variation. Property assessment ratio is 20% of market value
Price ranges across the state: Little Rock has a median of $225,000, while Fort Smith sits at $170,000 — a $55,000 gap that dramatically changes your monthly payment. At $0.62% property tax, that price difference alone means $28/month more in property tax in Little Rock.
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Homebuyer Programs and Exemptions
Arkansas offers several programs for homebuyers:
ADFA Move-Up program with competitive rates
Down payment assistance through ADFA up to $15,000
Homestead exemption: Homestead credit of up to $375 per year; additional freeze for seniors 65+
Arkansas-Specific Considerations
Very affordable housing market — among lowest median prices nationally
Higher-than-average insurance due to tornado and severe storm risk
No local income taxes
Property assessment ratio is 20% of market value
Property tax rates vary by county and school district — rates in Little Rock metro (~0.6%) differ from rural areas (~0.9%+)
Compare Arkansas Mortgage Rates
See personalized rates from Arkansas lenders. LendingTree matches you with up to 5 offers so you can compare and save.
0.39% property tax, 5% top rate. Median home: $232,500.
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1.04% property tax, no income tax. Median home: $340,000.
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0.62% property tax, 2.5% top rate. Median home: $395,000.
Frequently Asked Questions
What is the average property tax rate in Arkansas?
The average effective property tax rate in Arkansas is 0.62%. On a $195,000 home (the state median), that works out to approximately $1,209/year or $101/month added to your mortgage payment. Property tax rates vary by county and school district within Arkansas — always check your specific jurisdiction's rate. Homestead exemption: Homestead credit of up to $375 per year; additional freeze for seniors 65+
How much does homeowners insurance cost in Arkansas?
The average annual homeowners insurance premium in Arkansas is approximately $1,900 ($158/month). This is near the national average of approximately $1,500/year. Actual premiums depend on your home's location, age, construction type, and coverage limits.
What first-time homebuyer programs are available in Arkansas?
ADFA Move-Up program with competitive rates. Down payment assistance through ADFA up to $15,000. These programs typically have income limits, purchase price caps, and may require homebuyer education courses. Check the Arkansas housing finance agency website for current eligibility requirements and application deadlines.
How does Arkansas's 4.4% income tax affect home affordability?
Arkansas's top income tax rate of 4.4% reduces your take-home pay, which affects how much mortgage you can comfortably carry. On a $150,000 salary, state income tax takes roughly $4,290-$5,610/year (effective rate is lower than the top marginal rate). The tradeoff: Arkansas's relatively low 0.62% property tax rate keeps the housing-specific portion of your tax burden lower. Use our paycheck calculator to see your exact take-home pay.
What is the conforming loan limit in Arkansas?
The 2026 conforming loan limit in Arkansas is $806,500. Loans above this amount are considered jumbo loans and typically carry higher interest rates (0.25-0.5% premium), require larger down payments (10-20%), and have stricter qualification requirements including higher credit scores (700+) and lower debt-to-income ratios.
This calculator is for educational purposes. Tax rates and insurance costs are based on Arkansas state averages and may not reflect your specific county, school district, or municipality. Consult a financial professional for advice specific to your situation.