Understanding Arkansas’s Transfer Tax: A Quick Guide
Learn about the Arkansas transfer tax: Understand how it affects your property sale and learn about possible exemptions.
When selling a home in Arkansas, it’s important to understand the full scope of costs involved—including the Arkansas real estate transfer tax. This tax is a one-time fee paid when property ownership changes hands, typically calculated based on the sale price. While transfer taxes are common across the U.S., the specific amount and who pays can vary by state, county, and city.
In this guide, we’ll break down how real estate transfer taxes work in Arkansas, what sellers can expect to pay, and whether there are any exemptions.
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What are transfer taxes?
A real estate transfer tax is a fee imposed by state or local governments when property ownership is officially transferred from one party to another. According to the Federal Trade Commission, this tax applies when a home’s title—the legal document proving ownership—changes hands. The amount owed can vary based on local regulations and the property’s sale price.
The specific transfer tax rate depends on where the property is located, as state, county, and city governments often set their own transfer tax policies. These taxes help generate revenue for public services and infrastructure. Home sellers and buyers should be aware of these costs to avoid surprises at closing.
Who pays for transfer taxes?
The responsibility of who pays for transfer taxes at closing varies by state. In Arkansas, real estate transfer taxes are paid by the seller.
