Arkansas vs Texas
Property‑Tax Comparison: Arkansas vs. Texas
Quick overview – According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), Arkansas has an effective property‑tax rate of 0.57 %, while Texas’s rate is 1.58 %. The difference translates into substantially lower annual property‑tax bills for comparable home values in Arkansas.
Side‑by‑side metrics
| Metric | Arkansas | Texas |
|---|---|---|
| Effective property‑tax rate | 0.57 % | 1.58 % |
| Median home value | $175,300 | $260,400 |
| Median annual property tax | $1,003 | $4,111 |
| Property tax on a $250,000 home | $1,431 | $3,947 |
| Property tax on a $500,000 home | $2,861 | $7,893 |
| Median household income | $58,773 | $76,292 |
Source: According to U.S. Census Bureau data (2023 ACS 5‑year estimates).
Which state “wins” on property tax?
- Winner (lower rate): Arkansas – Its effective property‑tax rate of 0.57 % is 1.01 percentage points lower than Texas’s 1.58 %.
- Tax‑rate difference: 1.01 % points, representing a 63.75 % relative reduction compared with Texas.
- Annual tax impact:
- On a $250,000 home, Arkansas owners pay $2,516 less per year.
- On a $500,000 home, Arkansas owners pay $5,032 less per year.
Because the comparison is based on the effective tax rate, Arkansas consistently yields lower property‑tax liabilities across the listed home values.
Who is likely to benefit from this comparison?
| Audience | Relevance of lower property tax |
|---|---|
| Current homeowners | Reduces ongoing annual expenses; may affect budgeting and cash‑flow planning. |
| Prospective homebuyers | Influences total cost of ownership; lower taxes can make a higher‑priced home more affordable. |
| Retirees and fixed‑income households | Lower property taxes can ease budget constraints, especially when combined with median household income levels. |
| Investors | Lower tax outlays improve net operating income for rental properties. |
| Policy analysts / researchers | Provides a data‑driven illustration of how state‑level tax structures differ. |
Further reading
- Detailed information on Arkansas’s property‑tax system: Arkansas property tax
- Detailed information on Texas’s property‑tax system: Texas property tax
Based on the most recent ACS estimates, Arkansas’s lower effective property‑tax rate results in materially lower annual tax bills for comparable home values, making it the more tax‑advantageous state for the categories listed above.
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.