Arkansas real estate transfer tax: what it is and how to pay it

What the Arkansas real property transfer tax is

The Arkansas real property transfer tax is a tax imposed on the conveyance of real estate in the state. ^[1] It applies to each deed, instrument, or writing by which lands, tenements, or other realty are granted, assigned, transferred, or otherwise conveyed. ^[1] The tax is administered by the Arkansas Department of Finance and Administration (DFA), which provides guidance and collects the tax. ^[1] The law that establishes and governs the tax is found in Arkansas Code Title 26, Subtitle 5, Chapter 60. ^[2] For more detail, see . Realtor commission in Arkansas: how it works and what to expect.

In practical terms, whenever a deed or similar instrument is used to transfer ownership of real property in Arkansas, the transfer tax statute is the law that makes that document potentially subject to tax. ^[1] The DFA handles filings and questions about how the tax applies to a particular transfer and where payments should be directed. ^[1] If you are closing a sale, gift, or other conveyance of real property, your closing agent or attorney will typically confirm whether the instrument is taxable under the statute and follow DFA procedures. ^[1] For specific language and statutory detail, consult Arkansas Code Title 26, Subtitle 5, Chapter 60. ^[2] For more detail, see . Average Realtor Fees in Arkansas: What Sellers and Buyers Should Expect.

If you need help interpreting whether a specific transfer triggers the tax, contact the DFA or a licensed Arkansas real estate attorney for guidance. ^[1]

Current rate and when it applies

The Arkansas real estate transfer tax is charged at $3.30 for every $1,000 of consideration, which is equivalent to 0.33%. ^[3] The fee applies only when the transaction consideration exceeds $100; transfers of $100 or less are not subject to the tax. ^[4] In practice, that means on a $200,000 sale the state transfer tax would be $660 (200 × $3.30) — because you divide the sale price by $1,000 and multiply by $3.30 — provided the consideration is over the $100 threshold. ^[5]

How to think about it in common transactions

• Home sale example: On a $250,000 sale the transfer tax is $825 (250 × $3.30) if the recorded consideration exceeds $100. ^{[3] [4]}
• Low-value transfers: A deed conveying real property for $100 or less does not trigger the transfer tax. ^[4]

A few practical notes

• The rate is expressed per $1,000 of consideration, so compute transfer tax by dividing the sale price (consideration) by 1,000 and multiplying by $3.30. ^{[3] [5]}
• Confirm with your closing agent or county recorder how the consideration is reported on the deed, because the tax is calculated on the recorded consideration amount. ^[5]

If you want a quick calculation for your transaction, tell your sale price and I’ll compute the state transfer tax for you.

Who pays the tax and common exemptions

Who pays the transfer tax in Arkansas and which transfers are exempt

The Arkansas real property transfer tax is levied on each deed, instrument, or writing that conveys real property, and it applies to the conveyance itself rather than to the person by statute, so the transaction at closing is where the tax is assessed and collected ^[1]. In practice, who actually pays at closing — buyer or seller — depends on the sales contract and local custom: the contract determines whether the buyer or seller covers the transfer tax as a closing cost, so buyers should not assume the seller will pay unless the contract says so ^[1].

Certain conveyances are excluded from the tax by statute. Transfers to or from government entities are among the exclusions listed in Arkansas law, so those transactions are not subject to the transfer tax ^[1]. Because the statutory list of exclusions is broader than a single example, review the statute or ask a title company or attorney to confirm whether a particular transfer is excluded ^[1].

Example scenarios

• Standard residential sale: the deed is presented at closing and the transfer tax is calculated on the conveyance; who pays it is set by the sale contract and closing instructions ^[1].
• Transfer to a municipal government: typically excluded from the tax under statutory exclusions for government transfers ^[1].

If you need to confirm whether a specific transfer is exempt or who should be charged at closing, request a copy of the deed language and the statute or consult your title company or attorney for a binding determination ^[1].

How to calculate the transfer tax

1. Take the sale price (consideration). ^[3]

How to pay the transfer tax at closing

1. Confirm who will handle payment at closing. Ask your title company or closing agent whether they will collect and remit the real estate transfer tax or stamp as part of the closing settlement so the payment is handled with other closing costs. ^[1]
2. Provide the sale price and necessary documents. Give the closing agent the final sale price and any deed or transfer forms the agent needs to calculate the correct tax or prepare the stamp for recording. ^[1]
3. Let the agent prepare and pay the stamp or tax. If the closing agent is collecting the transfer tax, they will obtain or prepare the real estate transfer tax stamp and remit payment to the appropriate authority as required for recording the deed. ^{[1] [6]}
4. Request proof of payment. Ask the title company or closing agent for a copy of the paid transfer tax stamp or a receipt showing the tax was paid so you can keep that with your closing documents. ^[6]
5. Keep records with your closing packet. Store the paid stamp or receipt with your deed, settlement statement and title insurance policy so you have a clear record that the transfer tax obligation was satisfied at closing. ^[1]

Example: if your title company agrees to collect the stamp at closing, they will calculate the amount from the sale price, procure the stamp, pay the required office, and return a paid-stamp receipt for your file. ^{[1] [6]}

Common issues and misconceptions

Some calculators and providers note a rounding rule: Arkansas’ transfer tax is often applied using "ceiling units," meaning every started $1,000 of consideration counts as a full unit for the tax calculation; confirm the local practice with your closer or title company before finalizing figures. ^[7]

The state’s real property transfer tax is levied on deeds and other instruments conveying real property, so the tax applies at the time you record those documents. ^[1]

The commonly cited statewide rate is $3.30 per $1,000 of consideration (0.33%), which many online summaries and calculators use when estimating the amount due. ^{[3] [7]}

Local (city or county) real estate transfer taxes are not widely applied in Arkansas, but because local practice can vary and recording offices or counties might have specific procedures, check with your county recorder or title company to confirm whether any local tax or fee will be added at closing. ^{[7] [1]}

These checks avoid surprises at closing and ensure the transfer tax on your deed matches state and local practice. ^[1]

Frequently asked questions

Is the transfer tax the same as recording fees?

No — transfer tax is a separate tax imposed on deeds and similar instruments transferring real property, while recording fees are charged by the county recorder for filing documents with the recorder’s office.^[1]

Who decides who pays the transfer tax?

Contract terms between buyer and seller normally set who pays the transfer tax, but the tax itself is imposed on the deed or instrument that conveys real property under state law.^[1][2]

Where can I find the statute and official guidance?

See Arkansas Code Title 26, Chapter 60 for the statutory provisions and the Arkansas Department of Finance and Administration’s Real Property Transfer Tax page for administrative guidance.^[2][1]

Is the transfer tax applied to all property transfers?

The transfer tax is levied on each deed, instrument, or writing by which lands, tenements, or other realty sold are granted or conveyed, per the DFA description.^[1]

Can a 1031 exchange affect transfer tax treatment?

Resources that discuss Arkansas transfer taxes in the context of 1031 exchanges note the state’s transfer tax rules when planning exchanges, so consult exchange specialists and the DFA guidance for specifics that apply to like-kind exchanges.^[5][1]

Conclusion and next steps

Wrap up and next steps

• The standard Arkansas real property transfer tax rate is $3.30 per $1,000 on transactions over $100 — calculate the amount early so you can include it in your closing estimates. ^{[3] [4]}
• Confirm whether your transaction qualifies for any exemptions or special rounding rules with your title or closing agent, and check the Arkansas Department of Finance and Administration for official guidance before closing. ^[1]
• The transfer tax is levied on deeds, instruments, or writings that convey real property; make sure the deed recording or transfer documentation references the tax payment. ^[1]
• Arrange payment through your closing agent or as instructed by the DFA, and keep receipts and the recorded deed or instrument as proof of payment for your records. ^[1]

Sources

1. Real Property Transfer Tax – Arkansas Department of Finance ...
2. Arkansas Code Title 26, Subtitle 5, Chapter 60 (2025)
3. SUMMARY OF REAL ESTATE TRANSFER TAXES BY ...
4. Understanding Arkansas's Transfer Tax: A Quick Guide
5. 1031 Exchanges in Arkansas (Transfer Taxes & QI Services)
6. EXHIBIT C Real Estate Transfer Tax Stamp
7. Arkansas Real Property Transfer Tax Calculator