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Updated 2025 Tax Year

Montgomery County
Property Tax Guide

Everything you need to know about property taxes in Montgomery 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
3.000% effective rate (varies by taxing district combination)
1st Due
Oct 15
Exemptions
4+ Available
Section 1

How Property Tax Works

Montgomery County, Arkansas operates on a property tax system that serves as the primary funding source for essential local services including public schools, county government operations, road maintenance, and emergency services. Property owners in Montgomery County face an effective tax rate of approximately 3.000% based on assessed value, though this represents a countywide average that can vary significantly depending on your specific location.

The actual tax rate you pay depends on the combination of taxing districts that serve your property, including the county general fund, school districts, municipal governments (if applicable), and various special districts such as fire protection or library districts. These overlapping jurisdictions each levy their own rates, which are combined to determine your total property tax bill. Assessment values in Arkansas are typically set at a percentage of fair market value, and property is reassessed periodically to reflect current market conditions.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County General0.500%County operations, roads, courts
School District2.000%Public education funding
Municipal (varies)0.200-0.800%City services (if within city limits)
Fire Protection0.100-0.300%Fire and emergency services
Library District0.050-0.150%Public library services
Total Range2.850-3.750%Varies by location and districts

Note: These rates apply to the current tax levy year and are based on assessed value. Your specific rate depends on which taxing districts serve your property address. Special improvement districts, drainage districts, or other local assessments may result in additional charges not reflected in the base rate.

Section 3

When Are Property Taxes Due?

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

First Installment
Oct 15
Delinquent after Dec 10
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 Montgomery County are additional tax bills issued when there are changes to property ownership, value, or use that occur after the main tax roll has been completed. The most common triggers include new construction, completion of major improvements, subdivision of property, or ownership transfers that remove existing tax credits.

When supplemental taxes are levied, they are calculated by applying the current tax rate to the difference between the old and new assessed values, prorated for the portion of the tax year remaining. For example, if you complete a $100,000 home addition in January that increases your assessed value by $20,000, and your total tax rate is 3.000%, you would receive a supplemental bill for approximately $600 ($20,000 × 3.000%) covering the full tax year, since the improvement was completed early in the year.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value (20%): $60,000
  • Less: Homestead Tax Credit: -$425
  • Net Taxable Value: $59,575
  • Annual Tax (3.000%): $1,787
  • Monthly Payment: $149

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value (20%): $120,000
  • Less: Homestead Tax Credit: -$425
  • Net Taxable Value: $119,575
  • Annual Tax (3.000%): $3,587
  • Monthly Payment: $299

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value (20%): $200,000
  • Less: Homestead Tax Credit: -$425
  • Net Taxable Value: $199,575
  • Annual Tax (3.000%): $5,987
  • Monthly Payment: $499

Note: Tax credits such as the Homestead Tax Credit require annual application and are not automatically applied. Actual rates may vary based on your property's specific taxing districts.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Montgomery County require borrowers to maintain an escrow account for property taxes, especially when the loan-to-value ratio exceeds 80%. Your lender will collect monthly escrow payments equal to your estimated annual property tax divided by 12, plus a cushion amount typically equal to two months of payments. These funds are held in a separate account and used to pay your property taxes when they become due on October 15th.

Lenders are required to provide an annual escrow analysis showing the account activity and any adjustments needed for the coming year. If property taxes increase due to higher assessments or rate changes, your monthly escrow payment will be adjusted accordingly. You have the right to review the escrow account and request corrections if you believe there are errors. Property owners should verify that their lender pays the correct amount by reviewing their tax bill and ensuring all applicable credits have been properly applied.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are Montgomery County property taxes due? A: Property taxes are due by October 15th each year. If October 15th falls on a weekend, the deadline extends to the next business day.

Q: What tax credits are available and how do I apply? A: The primary tax credit is the Arkansas Homestead Tax Credit of up to $425 annually for owner-occupied homes. This credit requires an application to be filed with the Montgomery County Assessor's office and must be renewed periodically.

Q: How does the Homestead Credit work? A: The Homestead Credit provides a dollar-for-dollar reduction in your tax bill, not your assessed value. It also caps assessment increases on your primary residence. You must apply for this credit - it is not automatic.

Q: What happens if I pay my taxes late? A: Late payments incur penalties and interest charges. Properties with delinquent taxes may eventually be subject to tax sale proceedings.

Q: Can I pay my property taxes online? A: Yes, Montgomery County offers online payment options through their official website. Credit card payments may incur additional processing fees.

Q: How often is property reassessed? A: Arkansas law requires periodic reassessment to maintain current market values. The specific schedule varies by county.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Montgomery County Board of Equalization within the specified timeframe after assessment notices are mailed, typically in the spring.

Q: Do special districts affect my tax rate? A: Yes, fire protection districts, library districts, and other special taxing districts can add to your base county and school tax rates.

Q: Are senior citizens eligible for additional tax relief? A: Contact the Montgomery County Assessor's office to inquire about age-based tax credits or exemptions that may require separate application.

Q: What if I disagree with special district charges on my bill? A: Contact the specific district directly for questions about their charges, or the Montgomery County Collector's office for assistance in directing your inquiry.

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
F iscal P lanmontgomerycountymd.gov
03
Fiscal Year 2026montgomerytn.gov
04
Tax Doc
Property Tax Centerportal.arkansas.gov
05
State
Residential Real Estate – Arkansas Department of Finance ...dfa.arkansas.gov
06
County
Montgomery County Property Tax Billnacdashboard.nara.gov
07
State
State of Arkansas Tax Reform and Relief Legislative Task ...arkleg.state.ar.us
08
aacd-annual-report-2023.pdfdfa.arkansas.gov
09
Tax Doc
Residential Property Tax Relief Programsarchive.legmt.gov
10
County
Montgomery County, Arkansasarklegaudit.gov
All sources verified as of 2025 Tax Year

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