Arkansas vs Illinois
Property Tax Comparison: Arkansas vs. Illinois
Summary
Both Arkansas and Illinois 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), Arkansas’s effective property tax rate is substantially lower than Illinois’s. The difference in rates translates into markedly lower annual tax bills for comparable home values in Arkansas.
Side‑by‑side metrics
| Metric | Arkansas | Illinois |
|---|---|---|
| Effective property tax rate | 0.57 % | 2.07 % |
| Median home value | $175,300 | $250,500 |
| Median annual property tax | $1,003 | $5,189 |
| Tax on a $250k home | $1,431 | $5,179 |
| Tax on a $500k home | $2,861 | $10,357 |
| Median household income | $58,773 | $81,702 |
All figures are taken from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which state “wins” on property taxes?
Winner (lower tax rate): Arkansas
- Rate difference: 1.50 percentage points, which is a 72.38 % lower effective rate than Illinois.
- Annual tax difference on a $250,000 home: $3,748 less in Arkansas.
- Annual tax difference on a $500,000 home: $7,496 less in Arkansas.
The lower effective tax rate in Arkansas means that, for the same home value, property‑tax liabilities are considerably smaller than in Illinois. The calculation is straightforward: multiply the home value by each state’s effective rate (e.g., $250,000 × 0.57 % = $1,431 in Arkansas vs. $250,000 × 2.07 % = $5,179 in Illinois).
Who benefits most from this comparison?
| Audience | Relevance of the comparison |
|---|---|
| Current or prospective homeowners | The lower tax burden in Arkansas can reduce ongoing housing costs, influencing affordability decisions. |
| Retirees on fixed incomes | Lower annual property taxes may make Arkansas a more financially sustainable location for retirees. |
| Real‑estate investors | Property‑tax expense is a key component of cash‑flow analysis; Arkansas’s rates can improve net returns on comparable assets. |
| Policy analysts / researchers | The data illustrate how state‑level tax policy impacts household finances and can be used for comparative studies. |
The comparison is factual and does not endorse one state over the other; it simply highlights the quantitative differences in property‑tax obligations.
Further reading
- Detailed information on Arkansas’s property‑tax structure: Arkansas property tax
- Detailed information on Illinois’s property‑tax structure: Illinois property tax
Note: All numbers reflect the most recent ACS estimates (2023 5‑year). Local variations (e.g., county or municipal millage rates) can affect actual tax bills, so individuals should verify rates for specific jurisdictions.
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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.