Tax Foreclosure in Arkansas: What Homeowners Need to Know
A guide from AuctionBlock.org — a mission-driven company dedicated to foreclosure prevention education
Arkansas uses a tax deed system. The state sells delinquent tax properties through the Commissioner of State Lands rather than selling tax liens to investors.
How It Works
When property taxes go unpaid in Arkansas, the county collector certifies the delinquent taxes. Under Arkansas Code 26-37-101 et seq., after taxes are delinquent for two years, the land is certified to the Commissioner of State Lands, who conducts a public auction. The Commissioner's office sells the property — not a lien — meaning the buyer receives a deed.
Before the sale, the Commissioner must provide notice to the property owner by certified mail and by publication.
Redemption Period
Arkansas provides a right of redemption. Under Ark. Code 26-37-301 et seq., the former owner can redeem the property by paying all delinquent taxes, penalties, interest, and costs. The redemption period ends when the deed is delivered to the purchaser, which is generally 10 business days after the sale. However, if the property is a homestead, the owner may have additional protections. Contact the Commissioner of State Lands office for specifics.
After Tyler v. Hennepin County (2023), Arkansas property owners may have rights to surplus proceeds above the tax debt owed. Consult a legal aid attorney if your property sold for more than you owed.
Key Programs and Exemptions
Homestead Property Tax Credit: Arkansas provides a property tax credit on homestead property. Under Amendment 79 to the Arkansas Constitution, homeowners receive a credit on the first $350 of property tax on their homestead. This is applied automatically by the county.
Disabled Veteran Homestead Exemption: Under Ark. Code 26-3-306, disabled veterans with a 100% permanent disability rating are exempt from all property taxes on their homestead.
Senior Citizen Property Tax Freeze: Under Amendment 79, homeowners 65 and older (or disabled) who have owned and lived in their home for at least 3 years may have their property's taxable value frozen — preventing assessment increases.
Where to Get Help
- Center for Arkansas Legal Services: Provides free legal help to low-income Arkansans. Call (501) 376-3423 or 1-800-950-5817, or visit arlegalservices.org.
- Legal Aid of Arkansas: Serves northern and eastern Arkansas. Call (870) 972-9224 or 1-800-952-9243, or visit arlegalaid.org.
- HUD-Approved Housing Counselors: Call 1-800-569-4287 or visit hud.gov/counseling.
Take Action
Contact your county collector's office immediately if you are behind on property taxes. Ask about payment options before your property is certified to the Commissioner of State Lands.
Visit auctionblock.org/get-help for free resources and referrals.
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Laws and programs change. Verify current rules with your county tax office or a licensed attorney. AuctionBlock.org is a mission-driven company.