Arkansas vs Colorado
Property‑Tax Comparison: Arkansas vs. Colorado
Intro
Both Arkansas and Colorado levy property taxes that fund local services such as schools, roads, and public safety. According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), the two states differ markedly in median home values, effective tax rates, and the resulting annual tax payments. The following sections present the key figures side‑by‑side, identify which state has the lower effective property‑tax rate, and discuss which types of households might be more affected by these differences.
Side‑by‑Side Comparison (2023 ACS)
| Metric | Arkansas | Colorado |
|---|---|---|
| Effective property‑tax rate | 0.57 % | 0.49 % |
| Median home value | $175,300 | $502,200 |
| Median annual property tax | $1,003 | $2,448 |
| Tax on a $250,000 home | $1,431 | $1,219 |
| Tax on a $500,000 home | $2,861 | $2,438 |
| Median household income | $58,773 | $92,470 |
| Internal link | Arkansas property tax | Colorado property tax |
All numbers are drawn from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Who Wins on Property‑Tax Rate?
- Winner (lower rate): Colorado – its effective property‑tax rate of 0.49 % is lower than Arkansas’s 0.57 %.
- Rate difference: 0.08 percentage points, which represents a 14.80 % lower rate in Colorado relative to Arkansas.
- Annual tax difference on a $250 k home: $212 less in Colorado ($1,219 vs. $1,431).
- Annual tax difference on a $500 k home: $423 less in Colorado ($2,438 vs. $2,861).
The lower effective rate in Colorado translates into smaller tax bills for properties of the same assessed value, even though Colorado’s median home price is considerably higher.
Which Audiences Might Find This Comparison Most Relevant?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Understanding how the effective tax rate and median tax payments differ helps when estimating ongoing housing costs in each state. |
| Retirees considering relocation | Property‑tax burden is a key component of fixed‑income budgeting; a lower rate can reduce yearly expenses. |
| Real‑estate investors | Tax rate and median home value influence cash‑flow calculations and return on investment. |
| Policy analysts or local government officials | The data illustrate how tax structures interact with income levels and housing markets in the two states. |
Because the comparison is based purely on the effective property‑tax rate, it is most useful for anyone whose primary concern is the proportion of a home’s value that must be paid annually in taxes, rather than absolute dollar amounts, which are affected by the large disparity in median home values.
Summary
Based on the most recent ACS estimates, Colorado’s effective property‑tax rate (0.49 %) is lower than Arkansas’s (0.57 %). This 0.08 % difference results in $212‑$423 lower annual taxes for typical home values of $250 k and $500 k, respectively. While Colorado’s median home price is substantially higher, the lower rate means a smaller share of a property’s value is allocated to taxes. Homeowners, retirees, investors, and policy analysts can use these figures to assess the relative tax burden in each state.
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Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.