Arkansas vs Indiana
Property‑Tax Comparison: Arkansas vs. Indiana
Introduction
Both Arkansas and Indiana 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 lower than Indiana’s, resulting in smaller annual tax bills for comparable home values.
Side‑by‑Side Metrics
| Metric (2023 ACS) | Arkansas | Indiana |
|---|---|---|
| Effective property‑tax rate | 0.57 % | 0.74 % |
| Median home value | $175,300 | $201,600 |
| Median annual property tax | $1,003 | $1,496 |
| Tax on a $250,000 home | $1,431 | $1,855 |
| Tax on a $500,000 home | $2,861 | $3,711 |
| Median household income | $58,773 | $70,051 |
| Source | Arkansas property tax | Indiana property tax |
All figures are derived from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Tax?
Winner (lower tax rate): Arkansas
- Rate difference: 0.17 % points, which is a 22.89 % lower effective rate than Indiana.
- Annual tax impact:
- On a $250,000 home, Arkansas homeowners pay $424 less per year.
- On a $500,000 home, the difference rises to $850 per year.
The lower effective rate in Arkansas directly translates into smaller property‑tax liabilities across the typical range of home values.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of Arkansas’s Lower Rate |
|---|---|
| Current or prospective homeowners | Lower annual taxes reduce the cost of homeownership, especially for buyers of mid‑range to high‑value properties. |
| Retirees on fixed incomes | Reduced tax bills can help stretch retirement income, making Arkansas more financially attractive for downsizers. |
| Real‑estate investors | Lower property‑tax expenses improve cash‑flow projections for rental or investment properties. |
| Households comparing overall affordability | While Arkansas has a lower tax rate, Indiana’s higher median household income may offset some tax differences; a full affordability analysis should consider both taxes and income levels. |
Summary
Based on the most recent ACS estimates, Arkansas’s effective property‑tax rate of 0.57 % is lower than Indiana’s 0.74 %, resulting in modest but measurable savings on annual tax bills for comparable home values. The advantage is most pronounced for owners of higher‑valued homes and for households where property‑tax expense is a significant portion of the budget.
All data referenced are from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
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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.