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Updated 2025 Tax Year

Independence County
Property Tax Guide

Everything you need to know about property taxes in Independence County, AR. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
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Quick Facts
Tax Rate
1.500% county rate plus additional rates for school districts, cities, and special districts - varies by location
Exemptions
5+ Available
Section 1

How Property Tax Works

Independence County, Arkansas operates under the state's property tax system to fund essential local services including public schools, county operations, municipal services, and special districts. Property taxes are assessed annually based on the assessed value of real estate and personal property, with the county collecting taxes for multiple jurisdictions including the county government, school districts, cities, and various special purpose districts.

The effective property tax rate in Independence County varies significantly by location within the county due to the layering of different taxing jurisdictions. While the county-wide rate component is 1.500% as of the 2025 tax year, property owners also pay additional rates for their local school district, municipal services (if within city limits), and any applicable special districts such as fire protection, library, or improvement districts. This means actual total tax rates typically range from approximately 2.0% to 3.5% depending on the specific location and applicable special taxing districts.

Property owners should note that their exact tax rate depends on their property's location within Independence County's various taxing districts. The Independence County Assessor's office maintains detailed maps and rate schedules showing how rates vary across different areas of the county.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
Independence County General1.500%County operations, road maintenance, public safety (FY 2025)
School Districts0.800% - 1.200%Varies by school district (Batesville, Cave City, etc.)
Municipal Rates0.300% - 0.800%City services (applies only within city limits)
Fire Protection Districts0.100% - 0.300%Rural fire protection services
Library Districts0.050% - 0.150%Public library funding
Special Improvement Districts0.100% - 0.500%Infrastructure, drainage, other improvements

Note: These rates apply to the FY 2025-2026 levy year. Total effective rates vary significantly by location within Independence County due to different combinations of special taxing districts. Property owners may be subject to 3-6 different taxing entities depending on their location. Contact the Independence County Assessor's office or use their online GIS mapping system to determine the exact rate for a specific address.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Independence County, property taxes are due in two installments:

Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental property taxes in Independence County are additional tax bills issued when there are changes to property ownership, new construction, or improvements that increase a property's assessed value during the current tax year. These taxes are calculated from the effective date of the change through the end of the current tax year (December 31st).

Common triggers for supplemental taxes include: purchasing property (ownership transfer), completing new construction or major renovations, adding structures like pools or outbuildings, or correcting assessment errors that result in higher valuations. The supplemental tax amount is calculated by taking the difference between the new assessed value and the previous assessed value, multiplying by the applicable tax rate, then prorating for the remaining months in the tax year.

Example: If you purchase a home in July that triggers a $50,000 increase in assessed value, and your total tax rate is 2.5%, your supplemental tax would be approximately $625 (($50,000 × 0.025) ÷ 2) for the remaining six months of the tax year. Supplemental tax bills are typically issued 30-90 days after the triggering event and have separate due dates from regular property tax bills.

Example Calculation

$300,000 Home (Assessed at 20% of market value)

  • Market Value: $300,000
  • Assessed Value: $60,000
  • Less: Homestead Tax Credit: -$375 (application required)
  • Net Taxable Value: $59,625
  • Tax Rate: 2.8% (example total rate)
  • Annual Tax: $1,670
  • Monthly Escrow: $139

$600,000 Home (Assessed at 20% of market value)

  • Market Value: $600,000
  • Assessed Value: $120,000
  • Less: Homestead Tax Credit: -$500 (application required)
  • Net Taxable Value: $119,500
  • Tax Rate: 2.8% (example total rate)
  • Annual Tax: $3,346
  • Monthly Escrow: $279

$1,000,000 Home (Assessed at 20% of market value)

  • Market Value: $1,000,000
  • Assessed Value: $200,000
  • Less: Homestead Tax Credit: -$500 (application required)
  • Net Taxable Value: $199,500
  • Tax Rate: 2.8% (example total rate)
  • Annual Tax: $5,586
  • Monthly Escrow: $466

Note: Tax rates vary by location within Independence County. Homestead Tax Credit requires annual application with the Independence County Assessor's office and is not automatic. Credit amounts may be lower than the maximum depending on your specific tax liability.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Independence County require borrowers to maintain an escrow account for property tax payments, especially when the loan-to-value ratio exceeds 80%. Lenders collect monthly escrow payments along with principal and interest, then pay property taxes directly to Independence County when they become due in October.

Lenders typically collect escrow payments based on the previous year's tax bill plus a cushion (usually 2 months of payments). When property taxes are due on October 15th, your lender will pay the full annual amount from your escrow account. Lenders are required to provide an annual escrow analysis showing projected taxes, actual payments made, and any shortage or surplus in the account. If taxes increase significantly due to reassessment or rate changes, your monthly escrow payment may be adjusted.

Property owners should verify that their lender has paid property taxes on time by checking with Independence County or reviewing their annual tax statement. If you pay taxes directly (without escrow), you're responsible for ensuring payment reaches the Independence County Collector's office by the October 15th deadline to avoid penalties and interest charges.

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Section 6

Frequently Asked Questions

Q: When are property taxes due in Independence County? A: Property taxes for the 2025 tax year are due October 15, 2025. This deadline applies to all property taxes in Independence County, including county, school district, municipal, and special district taxes.

Q: What tax credits are available and do they require application? A: The main tax credit available is the Homestead Tax Credit of up to $500 annually for owner-occupied residences. This credit requires annual application with the Independence County Assessor's office and is NOT automatic. Beginning with 2026 tax bills, additional homestead benefits may be available.

Q: How does the Homestead Tax Credit work? A: The Homestead Tax Credit provides a direct reduction to your property tax bill (not your assessed value) and caps annual assessment increases. You must file an application with the Independence County Assessor's office each year to receive this credit. The credit limits how much your assessment can increase year-over-year, providing tax stability for homeowners.

Q: How often are properties reassessed in Independence County? A: Arkansas law requires property to be reassessed periodically, though the specific schedule varies. Independence County conducts systematic reappraisals on a rotating basis. Property owners receive notice of assessment changes and have the right to appeal through the Independence County Board of Equalization.

Q: What are the penalties for late property tax payments? A: Property taxes not paid by the October 15th deadline are subject to penalty and interest charges. Delinquent taxes accrue interest monthly and may eventually result in tax lien proceedings against the property.

Q: Can I pay property taxes online? A: Yes, Independence County offers online property tax payments through their official website. You can pay by electronic check or credit card, though convenience fees may apply for credit card transactions. Payments can also be made in person at the county courthouse or by mail.

Q: Why does my tax rate differ from my neighbor's? A: Tax rates vary within Independence County based on the specific taxing districts where your property is located. Different school districts, municipal boundaries, fire protection districts, and special improvement districts create varying total tax rates across the county.

Q: How do I appeal my property assessment? A: Property assessment appeals must be filed with the Independence County Board of Equalization within the specified appeal period (typically 30 days after assessment notices are mailed). Contact the Independence County Assessor's office for specific appeal procedures and deadlines.

Q: What triggers supplemental tax bills? A: Supplemental taxes are issued when property changes ownership, new construction is completed, or improvements increase assessed value during the tax year. These create additional tax liability from the effective date through December 31st of the current tax year.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
JANUARY - MARCH 2025dfa.arkansas.gov
02
Tax Doc
Local Sales & Use Tax Rate Changesdfa.arkansas.gov
03
County
Independence County, Arkansasarklegaudit.gov
04
Tax Doc
Property Tax Centerportal.arkansas.gov
05
Arkansas Assessment Coordination Divisiondfa.arkansas.gov
06
arkansas public service commissiontpucdockets.tn.gov
07
State
State of Arkansas Tax Reform and Relief Legislative Task ...arkleg.state.ar.us
08
Tax Doc
Property Tax Relief – Arkansas Department of Finance and ...dfa.arkansas.gov
09
House Billsarkleg.state.ar.us
10
County
Independence County, Arkansasarklegaudit.gov
All sources verified as of 2025 Tax Year

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