Arkansas vs Tennessee
Property Tax Comparison: Arkansas vs. Tennessee
Overview
Both Arkansas and Tennessee have property‑tax rates that are below the national average. 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 Tennessee’s is 0.55 %. The two states also differ in median home values, household incomes, and the resulting annual property‑tax payments. The following sections present the data side‑by‑side, identify which state has the lower tax burden, and note the groups of residents for whom this comparison is most relevant.
Side‑by‑Side Comparison
| Metric (2023 ACS 5‑yr) | Arkansas | Tennessee |
|---|---|---|
| Effective property tax rate | 0.57 % | 0.55 % |
| Median home value | $175,300 | $256,800 |
| Median annual property tax | $1,003 | $1,400 |
| Property tax on a $250,000 home | $1,431 | $1,363 |
| Property tax on a $500,000 home | $2,861 | $2,726 |
| Median household income | $58,773 | $67,097 |
| Internal link | Arkansas property tax | Tennessee property tax |
Which State “Wins” on Property Tax?
- Lower effective tax rate: Tennessee (0.55 % vs. Arkansas’s 0.57 %).
- Rate difference: 0.03 percentage points, which represents a 4.72 % lower rate for Tennessee relative to Arkansas.
- Annual tax difference on a $250,000 home: Tennessee homeowners pay $68 less per year ($1,363 vs. $1,431).
- Annual tax difference on a $500,000 home: Tennessee homeowners pay $135 less per year ($2,726 vs. $2,861).
Why Tennessee is the winner: The lower effective tax rate directly translates into smaller annual tax bills for identical property values. Even though Tennessee’s median home price is higher, the tax burden per dollar of home value remains modest because of the lower rate.
Who Benefits Most from This Comparison?
| Audience | Relevance of the Data |
|---|---|
| Current homeowners | Understanding how their existing property tax liability compares to that of a neighboring state can inform decisions about relocation or refinancing. |
| Prospective homebuyers | Buyers can gauge the long‑term cost of owning a home in each state, especially when evaluating properties near $250 k or $500 k price points. |
| Retirees | Since property taxes affect fixed‑income budgets, retirees can use the lower rate in Tennessee as part of a broader cost‑of‑living assessment. |
| Real‑estate investors | Investors assessing cash‑flow projections need accurate tax estimates; the rate differential of 0.03 % can affect net returns over time. |
The comparison is factual and based solely on the most recent ACS estimates; it does not incorporate other taxes (e.g., income or sales taxes) or local variations in assessment practices.
Conclusion
Based on the effective property tax rate, Tennessee has the lower property‑tax burden compared with Arkansas. The difference is modest—0.03 % of assessed value—but it results in annual savings of $68 for a $250,000 home and $135 for a $500,000 home. Stakeholders such as homeowners, prospective buyers, retirees, and investors can use this data to evaluate the relative cost of homeownership in the two states.
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.