Arkansas vs New York
Property Tax Comparison: Arkansas vs. New York (2023 ACS)
According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Arkansas and New York differ markedly in property‑tax burden, home values, and median household income. The data below summarizes the key metrics that affect homeowners and other property owners in each state.
Side‑by‑Side Comparison
| Metric | Arkansas | New York |
|---|---|---|
| Effective property‑tax rate | 0.57 % | 1.60 % |
| Median home value | $175,300 | $403,000 |
| Median annual property tax | $1,003 | $6,450 |
| Property tax on a $250 k home | $1,431 | $4,001 |
| Property tax on a $500 k home | $2,861 | $8,003 |
| Median household income | $58,773 | $84,578 |
Sources: Arkansas property tax and New York property tax; data from the 2023 ACS 5‑year estimates.
Which State “Wins” on Property Tax?
- Winner (lower tax burden): Arkansas – its effective property‑tax rate of 0.57 % is less than half that of New York.
- Rate difference: 1.03 percentage points, representing a 64.25 % lower rate in Arkansas.
- Annual tax difference on a $250 k home: $2,570 less in Arkansas.
- Annual tax difference on a $500 k home: $5,142 less in Arkansas.
Based on the most recent ACS estimates, the lower effective rate translates directly into lower annual tax payments for comparable property values.
Why Arkansas Has the Lower Burden
- The effective rate (taxes divided by assessed value) is calculated from state‑ and local‑level assessments that are generally lower in Arkansas than in New York.
- New York relies more heavily on property taxes to fund local services, resulting in a higher rate despite a higher median home value.
Who Benefits Most From This Comparison?
| Audience | Relevance of Lower Tax Rate |
|---|---|
| Current homeowners | Reduced annual out‑of‑pocket costs for existing property, especially for homes valued near the median. |
| Prospective homebuyers | Lower ongoing tax expenses can improve affordability calculations when comparing housing markets. |
| Retirees and fixed‑income households | Fixed incomes are less strained by the lower property‑tax payments typical in Arkansas. |
| Real‑estate investors | Lower tax rates can increase net operating income for rental properties, though other factors (e.g., market demand, appreciation potential) also matter. |
| Policy analysts | The contrast illustrates how state fiscal structures influence the property‑tax burden independent of home‑price levels. |
The data do not address other cost‑of‑living components (e.g., income tax, sales tax, health‑care costs), which may affect the overall affordability for each group.
Summary
- Arkansas offers a substantially lower effective property‑tax rate (0.57 %) than New York (1.60 %).
- For comparable home values, Arkansas homeowners pay roughly $2,570–$5,142 less per year in property taxes.
- The lower tax burden is most advantageous for current homeowners, prospective buyers, retirees, and investors who prioritize ongoing tax expenses.
All figures are drawn from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates) and reflect median values for each state.
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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.