Real estate transfer tax in Arkansas: rate and exemptions

What is the rate, and what does it apply to?

DFA describes the tax as levied on each deed, instrument or writing by which lands, tenements or other realty sold are granted, assigned, transferred or otherwise conveyed. The rate is $3.30 per $1,000 of actual consideration, and it applies only when the consideration exceeds $100. DFA’s pages also say it reaches transfers of mineral rights.

“Consideration” means what is given for the property. The official affidavit asks for “the amount of the full consideration for the transaction,” so the base is the full price, not only the part that is financed.

Calculation: price ÷ 1,000 × $3.30.

These are straight multiplications of DFA’s rate. They are examples, not quotes. For a price that is not a multiple of $1,000, ask the circuit clerk or DFA how the stamps are rounded; the pages we read do not say.

Does a county or city add its own transfer tax?

The DFA pages we read describe one tax, the state tax. The City of Little Rock’s summary of state, county and city taxes covers income, sales and property taxes and does not list a transfer tax. The Pulaski County clerk’s real estate fee schedule lists recording charges only. We found no county or city transfer tax in these sources. Recording fees are separate from the tax (see below).

Who pays it?

The DFA pages we read do not say whether the buyer or the seller bears the tax. We did not find the statute text on an open official page, so this guide does not state a rule. In practice the purchase contract allocates closing costs, and your title company or closing attorney will show the amount on the settlement statement. DFA’s 1985 regulation says that the grantee or the grantee’s agent signs the statement that the correct stamps were placed on the deed.

Exemptions

DFA’s affidavit of compliance lists the exempt transactions. The ones most likely to matter to a homeowner:

• An instrument given by one party in a divorce action to the other as a division of marital property, by agreement or court order.
• An instrument correcting or replacing one already recorded with the tax fully paid.
• An instrument given solely to secure a debt, such as a mortgage.
• An instrument given to a lender in lieu of, or to avoid, a judicial foreclosure.
• A foreclosure deed that transfers the property to the same party who is enforcing the security interest. DFA’s regulation adds that a third-party buyer at the judicial sale does not get this exemption and must pay the tax on the full amount bid.
• A beneficiary deed under Ark. Code Ann. § 18-12-608.
• A transfer to or from the United States, the State of Arkansas or their agencies and political subdivisions.
• A sale of $60,000 or less of a home financed by FHA, VA or USDA Rural Development, if the seller files the buyer’s sworn statement that neither the buyer nor the buyer’s spouse has owned a home in the last three years.
• Consideration of $100 or less.

Read the full checklist on the DFA form before claiming one.

What you pay in addition: recording fees

The county clerk records the deed. In Pulaski County the clerk’s schedule (dated May 20, 2019) lists $15 for the first page (one side only) and $5 for each additional page of a deed or deed of trust. A five-page deed would cost $15 + 4 × $5 = $35 under that schedule. The same schedule adds $25 if the document does not meet the formatting rules and the requirement is waived for good cause. Confirm the current amounts with the clerk. For the other costs of closing, see closing costs in Arkansas and closing costs explained.

Worked example: a $200,000 sale in Little Rock

This is an example, not a quote.

For local context, see buying in Little Rock.