A Little Rock apartment building is taxed on 20% of the market value the Pulaski County Assessor sets for it, multiplied by the millage rates of the taxing units where the parcel sits. What makes Arkansas different from most states is the combination of a statewide assessment ratio, periodic countywide reappraisals, and a constitutional cap that slows how fast a rental property’s taxable value can rise after one.
Little Rock is the state capital and the county seat of Pulaski County, so every apartment parcel inside the city limits goes through the same county assessment, equalization and collection process described below.
The 20% rule and how a bill is built
Arkansas does not use separate assessment ratios for homes, apartments and commercial buildings. According to the Arkansas Department of Finance and Administration’s property tax FAQ, the assessment rate is 20% of true, actual or market value for real property across the state. The Pulaski County Assessor’s FAQ describes the same math locally: take 20% of market value to get the assessed value, then multiply by the local tax rate.
That local rate is expressed in mills, and it varies by location because it is the sum of levies from the school district, the county, the city and other taxing units covering a given parcel. Two Little Rock buildings with identical market values can therefore carry different bills if they sit in different school districts. The practical way to size taxes on a specific building is to pull the parcel’s current assessed value and total millage from county records rather than applying a citywide average.
A simple illustration of the structure (not a Little Rock rate): a building the Assessor values at $2,000,000 has an assessed value of $400,000. At a hypothetical 70 mills, the tax would be $400,000 × 0.070, or $28,000.
January 1 values, taxes paid the following year
Two timing rules trip up owners and buyers who come from other states:
- Lien date: the Pulaski County Assessor values real property as of January 1.
- Paid in arrears: the DFA explains that taxes on an assessment made in one year become due the following year, payable beginning the first business day in March and due by October 15.
- Business personal property: owners must list non-household tangible personal property with the Assessor between January 1 and May 31, and it is assessed at the same 20% level. For an apartment owner, that can include items such as appliances, furniture in furnished units and maintenance equipment. The Assessor’s office notes a 10% penalty for late assessment.
Because the bill lags the valuation by a year, a buyer closing in 2026 is typically dealing with taxes based on the prior year’s assessment, and the prorations at closing should reflect that.
Reappraisal cycles and the Amendment 79 cap
Arkansas counties reappraise real property on a schedule rather than every year. The DFA says reappraisals take place every three or five years, depending on how quickly real estate values in the county are growing. After a reappraisal, Amendment 79 to the Arkansas Constitution limits how quickly the taxable value of an existing parcel can climb:
- Homestead property (an owner’s principal residence) is limited to a 5% increase in taxable assessed value in the first year after reappraisal, with further annual steps until it reaches full value.
- Non-homestead property, which is the category an apartment building falls into, is limited to a 10% increase over the prior year’s taxable assessed value.
The cap has important exceptions. The DFA notes that it does not apply to newly discovered real property, new construction, or substantial improvements. A newly built complex, or an older building that goes through a major renovation, can be assessed at full market value right away instead of phasing in.
For owners, the result is that a building’s taxable value can sit below its full appraised value for several years after a big reappraisal jump. Anyone underwriting a purchase should look at both numbers on the county record and model how the gap will close at up to 10% per year.
Challenging a value: the August deadline
If an owner believes the Assessor’s value is too high, the first formal step is the Pulaski County Board of Equalization. The Assessor’s office states that any appeal to the board must be initiated by the third Monday in August for the tax year in question; for 2026, that was August 17. The office also accepts appeals by phone or email from mid-July until close of business on that deadline.
Income-producing properties are generally argued on their numbers. A useful appeal package for an apartment building usually includes:
- A current rent roll showing occupied and vacant units
- Trailing 12-month income and operating statements
- Evidence of deferred maintenance or capital needs, with contractor bids
- Recent sales of comparable Little Rock apartment properties, if available
Missing the August date generally means waiting until the next tax year, so the calendar matters as much as the evidence.
What this means for owners
Property tax is usually one of the largest fixed expenses on a Little Rock apartment building, and the Arkansas system rewards owners who track it closely. A few practical habits help:
- Check your parcel after every reappraisal and compare taxable value with full value, so you know how much headroom the 10% cap is protecting.
- Remember that a large renovation can reset the cap and push value to full market immediately; budget for that before starting work.
- Keep personal property listings current each spring to avoid the late penalty.
- If you are preparing to sell, give buyers the parcel’s assessment history. Buyers tend to price in the gap between taxable and full value, and clear records reduce retrades.
For a look at how Arkansas compares with other states, see our rent control and property tax guide by state. For local context on pricing and buyer demand, see our page on selling an apartment building in Little Rock, or browse other Arkansas multifamily markets.
