Arkansas vs New Jersey
Property Tax Comparison: Arkansas vs. New Jersey
Quick overview – Both states levy a tax on the assessed value of real‑estate, but the effective rates and resulting dollar amounts differ substantially. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Arkansas’s effective property‑tax rate is 0.57 %, while New Jersey’s is 2.23 %. The gap translates into markedly lower annual taxes for comparable home values in Arkansas.
Side‑by‑side metrics
| Metric (2023 ACS) | Arkansas | New Jersey |
|---|---|---|
| Effective property‑tax rate | 0.57 % | 2.23 % |
| Median home value | $175,300 | $427,600 |
| Median household income | $58,773 | $101,050 |
| Median annual property tax | $1,003 | $9,541 |
| Property tax on a $250,000 home | $1,431 | $5,578 |
| Property tax on a $500,000 home | $2,861 | $11,157 |
| Tax‑rate difference | – | +1.66 % (74.36 % higher) |
Sources: “According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).”
Which state has the lower tax burden?
Arkansas wins on the basis of a lower effective property‑tax rate.
- Rate advantage: Arkansas’s 0.57 % versus New Jersey’s 2.23 % – a difference of 1.66 percentage points, which is a 74.36 % lower rate.
- Dollar impact: For a $250,000 home, the annual tax in Arkansas is $1,431, compared with $5,578 in New Jersey—a $4,147 difference. For a $500,000 home, the gap widens to $8,296 ($2,861 vs. $11,157).
These calculations follow directly from the effective rates supplied by the ACS data.
Who is this comparison most relevant for?
| Audience | Why the data matters |
|---|---|
| Current homeowners | Understanding how much of a homeowner’s budget will be allocated to property taxes in each state. |
| Prospective homebuyers | Evaluating the long‑term cost of owning a comparable property (e.g., $250 k or $500 k) when choosing a location. |
| Retirees | Property‑tax burden can affect fixed‑income budgeting; Arkansas’s lower rates may preserve more discretionary income. |
| Real‑estate investors | Tax rates influence net cash flow and return‑on‑investment calculations for rental or resale properties. |
| Policy analysts | The figures illustrate how state‑level tax structures vary, which can be a factor in broader fiscal studies. |
Further reading
- Detailed information on Arkansas’s property‑tax system: Arkansas property tax
- Detailed information on New Jersey’s property‑tax system: New Jersey property tax
Based on the most recent ACS estimates, Arkansas imposes a substantially lower property‑tax rate than New Jersey, resulting in considerably lower annual tax payments for comparable home values.
Explore More Comparisons
Discover how property taxes compare across all states in our comprehensive comparison guide.
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.