Costs of Selling Land in Arkansas

Here is what a land seller usually pays in this state, from transfer tax to capital gains. When you sell to us, we pay the closing costs and you pay no fees or commissions.

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Seller Costs in Arkansas at a Glance

Cost	Typical amount	Who usually pays
Transfer tax, base	$1.10 per $1,000 of price (sales over $100)	Set by the contract; the statute does not assign it
Transfer tax, additional	$2.20 per $1,000 of price	Buyer, by statute
Deed recording fee	$15 first page, $5 each additional page	Set by the contract
Title search or title insurance	Varies by company; get a quote	Set by the contract
Closing or attorney fee	Varies by company or attorney; get a quote	Set by the contract
Prorated property taxes	Your share for the months you owned the land	Seller for their months; back taxes paid from the sale
Federal capital gains tax	0%, 15% or 20% on long-term gain (held more than 1 year); regular income rates if held 1 year or less	Seller, on the tax return
State income tax on the gain	Up to 3.9%; only 50% of a net long-term gain is taxed	Seller, on the tax return

Example: Seller Costs on a $25,000 Land Sale

Sale price: $25,000
Base transfer tax, if the contract assigns it to the seller (25 x $1.10): $-27.50
Additional transfer tax (25 x $2.20), paid by the buyer: $0
Net before recording, title, closing fee, prorated taxes and income tax: $24,972.50

$25,000 is 25 units of $1,000. Base tax: 25 x $1.10 = $27.50. Additional tax: 25 x $2.20 = $55, which the statute puts on the buyer. Total tax $82.50. Seller net: $25,000 minus $27.50 = $24,972.50. Title, closing and recording charges are not shown because the contract sets who pays them.

Selling Costs in Arkansas: What to Know

Arkansas charges a real property transfer tax of $3.30 for each $1,000 of the price. The law splits it into a $1.10 base tax and a $2.20 additional tax, and says the purchaser pays the $2.20 part. Other costs are recording, the closing fee, title work, a share of property taxes and tax on any gain.

This page lists each cost, who usually pays it, and where the rate comes from. A worked example shows what a seller keeps from a $25,000 sale. If you want to skip most of these costs, you can get a cash offer for your Arkansas land.

Arkansas real property transfer tax

Arkansas Code 26-60-105 levies $1.10 per $1,000 of consideration, or fraction of $1,000, on each deed when the price is over $100. It adds a second tax of $2.20 per $1,000 that is paid by the purchaser. The total is $3.30 per $1,000.

The tax is based only on the price paid for the real estate, not on personal property sold with it. The rate is set by the state, and we found no county or city add-on in the state sources we checked.

$10,000 sale: $33 total ($11 base, $22 additional)
$25,000 sale: $82.50 total ($27.50 base, $55 additional)
$60,000 sale: $198 total ($66 base, $132 additional)

Who pays what by custom

By statute, the buyer pays the $2.20 additional tax. The statute does not assign the $1.10 base tax, so your purchase contract decides who pays it. Read the closing cost section before you sign.

Recording fees are set by Arkansas Code 21-6-306: $15 for the first page and $5 for each additional page. The seller pays to clear their own liens and back taxes, because the buyer needs clear title.

Attorney or title company closing

Arkansas land sales can close through a title company or a real estate attorney. Either can search the title, prepare the deed, collect the transfer tax and record the deed with the circuit clerk.

Closing fees and title insurance premiums are not set by a state fee schedule we could confirm. Ask for a written quote.

Prorated property taxes

Property taxes are split at closing so each side pays for the part of the year they owned the land. Your closing statement shows the credit or charge. Any back taxes are paid from the sale proceeds at closing.

Capital gains tax basics (federal and Arkansas)

You owe tax on the gain, not on the full price. The gain is the sale price minus your basis (what you paid plus improvements) and minus your selling costs. The IRS explains basis in Topic 703.

If you owned the land for more than one year, the federal gain is long-term and is taxed at 0%, 15% or 20%, based on your taxable income. For 2025, a single filer pays 0% on long-term gains when taxable income is $48,350 or less. Land held one year or less is taxed as regular income. See IRS Topic 409.

Arkansas taxes only 50% of a net long-term capital gain, according to the AR1000D capital gains form. The top Arkansas income tax rate is 3.9% for tax years starting in 2024, per the Department of Finance and Administration. Short-term gains are fully taxable.

The closing agent usually reports the sale to the IRS on Form 1099-S. This page is general information, not legal or tax advice. Confirm the numbers with your closing agent or a tax professional.

How selling to a cash buyer changes the costs

A listing with an agent adds a commission on top of the costs above. When you sell to EasyLotBuyer, there are no fees or commissions, and we pay the closing costs. You get a cash offer within 24 hours and can close in as few as 7 days.

We also buy land with back taxes, liens, title issues or no road access, and land held by heirs or an estate. Back taxes are paid at closing from the sale, so you do not need cash up front. Your capital gains tax is still your own, so keep your closing statement for your tax return.

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Back taxes paid at closing from the sale
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Sources

Rules and fees change; check with the county before you act on them.

Selling Cost Questions in Arkansas

What is the transfer tax in Arkansas?

It is $3.30 per $1,000 of the price: a $1.10 base tax plus a $2.20 additional tax. A $25,000 sale has $82.50 in transfer tax.

Who pays the Arkansas transfer tax?

The buyer pays the $2.20 additional tax by statute. Your contract decides who pays the $1.10 base tax.

How much does it cost to record a deed in Arkansas?

The circuit clerk charges $15 for the first page and $5 for each extra page.

How is capital gains tax figured on Arkansas land?

Arkansas taxes half of a net long-term gain, at rates up to 3.9%. Federal capital gains tax also applies. This is not tax advice.

Do I need an attorney to sell land in Arkansas?

A title company or a real estate attorney can close the sale. Either can record the deed with the circuit clerk.

Can I sell Arkansas land with back taxes?

Yes. We buy land with back taxes, and the taxes are paid at closing from the sale.