Arkansas vs Missouri
Arkansas vs. Missouri Property Tax Comparison
Intro
Both Arkansas and Missouri 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 has a lower effective property tax rate than Missouri, resulting in smaller annual tax bills for comparable home values.
Side‑by‑side metrics
| Metric | Arkansas | Missouri |
|---|---|---|
| Effective property tax rate | 0.57 % | 0.88 % |
| Median home value | $175,300 | $215,600 |
| Median annual property tax | $1,003 | $1,887 |
| Property tax on a $250,000 home | $1,431 | $2,188 |
| Property tax on a $500,000 home | $2,861 | $4,376 |
| Median household income | $58,773 | $68,920 |
| Internal link | Arkansas property tax | Missouri property tax |
Who wins on property taxes?
- Winner (lower tax rate): Arkansas
- Rate difference: 0.30 percentage points, which is a 34.62 % lower effective rate than Missouri’s.
- Annual tax difference for a $250,000 home: $757 less in Arkansas.
- Annual tax difference for a $500,000 home: $1,515 less in Arkansas.
Why Arkansas wins: The effective property tax rate of 0.57 % is substantially below Missouri’s 0.88 %. Since the tax bill is calculated by applying the effective rate to the assessed value of the property, the lower rate directly translates into lower annual payments across all home price tiers.
Who might benefit most from this comparison?
| Audience | Relevance of the comparison |
|---|---|
| Current or prospective homeowners | Lower ongoing property tax expenses in Arkansas can reduce the total cost of home ownership, especially for buyers of mid‑range ($250k) and higher‑value ($500k) properties. |
| Retirees | Fixed‑income retirees often consider property tax burden when choosing a location. Arkansas’s lower rate may allow a larger portion of retirement income to be allocated to other expenses. |
| Real‑estate investors | Investors evaluating cash‑flow projections will see lower tax outlays in Arkansas, which can improve net operating income on rental properties. |
| Policy analysts / researchers | The clear rate differential provides a data point for studies on how state tax structures affect housing affordability and migration patterns. |
Summary
Based on the most recent ACS estimates, Arkansas’s effective property tax rate of 0.57 % is markedly lower than Missouri’s 0.88 %, producing annual tax savings of $757 on a $250,000 home and $1,515 on a $500,000 home. The lower rate makes Arkansas the more tax‑advantageous state for homeowners, retirees, and investors who prioritize property tax costs. All figures are drawn 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.