Arkansas vs New Mexico
Property Tax Comparison: Arkansas vs. New Mexico
Brief Overview
Both Arkansas and New Mexico have property‑tax systems that are funded primarily at the local level (county, city, and school districts). According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Arkansas’s effective property‑tax rate is lower than New Mexico’s, resulting in lower annual taxes for comparable home values. The following sections present the key metrics side‑by‑side, identify which state has the lower rate, and note the types of residents for whom the comparison may be most relevant.
Side‑by‑Side Comparison
| Metric | Arkansas | New Mexico |
|---|---|---|
| Effective property‑tax rate | 0.57 % | 0.72 % |
| Median home value | $175,300 | $232,200 |
| Median annual property tax | $1,003 | $1,669 |
| Annual tax on a $250,000 home | $1,431 | $1,797 |
| Annual tax on a $500,000 home | $2,861 | $3,594 |
| Median household income | $58,773 | $62,125 |
| Internal link | Arkansas property tax | New Mexico property tax |
All figures are drawn from the U.S. Census Bureau’s 2023 ACS 5‑year estimates.
Which State “Wins” on Property Taxes?
Winner (lower tax rate): Arkansas
- Effective tax‑rate difference: 0.15 percentage points.
- Relative difference: Approximately 20.8 % lower than New Mexico’s rate (0.15 ÷ 0.72 ≈ 0.208).
- Annual tax gap for a $250k home: $366 less in Arkansas.
- Annual tax gap for a $500k home: $733 less in Arkansas.
Because the effective property‑tax rate is the primary driver of yearly tax bills, Arkansas’s lower rate translates directly into lower property‑tax payments for homeowners with comparable property values.
Who Might Find This Comparison Most Useful?
| Audience | Relevance of the Comparison |
|---|---|
| Current homeowners | Understanding how their existing tax burden compares to an alternative state can inform decisions about relocation or refinancing. |
| Prospective homebuyers | The tax differential is a material cost factor when evaluating overall housing affordability in each state. |
| Retirees | Fixed‑income retirees often prioritize lower recurring expenses; a lower property‑tax rate can reduce long‑term housing costs. |
| Real‑estate investors | Investment analysis that includes tax expense will show a lower operating cost for properties in Arkansas versus New Mexico, assuming similar property values. |
| Policy analysts | The data illustrate how state‑level tax structures affect local revenue generation and household financial burden. |
The comparison is purely factual and does not constitute financial advice. Individuals should consider the full range of cost‑of‑living factors—including income levels, housing prices, and local services—when evaluating relocation or investment decisions.
Sources
- According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
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.