Texas vs Arkansas Taxes: Income, Property & Sales

Does Texas or Arkansas have lower taxes? We answer that in a variety of ways below:

Texas vs Arkansas Income Tax Comparison

	Texas	Arkansas
Income Tax Rates & Thresholds	None	2.00%: $0-$4,300 4.00%: $4,300-$8,500 4.90%: $8,501+
Median Income	$74,640	$53,980
Income Tax Paid On Median Household Income	$9,189	$7,352
Income After Tax Based on Median Household Income	$65,451	$46,628

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Texas vs Arkansas Property Tax Comparison

	Texas	Arkansas
Average Property Tax Rate	1.25%	0.53%
Average House Price By State	$305,497	$199,284
Average Property Tax Owed Per Year	$3,819	$1,056
Income After Income Taxes & Property Taxes Based On Median State Household Income	$61,632	$45,572

Texas vs Arkansas Sales Tax Comparison

	Texas	Arkansas
Average State Sales Tax	6.25%	6.50%
Average Local Sales Tax Across the State	1.95%	2.97%
Average Combined Sales Tax Rate	8.20%	9.47%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,671	$3,942
Maximum Disposable Income Based on Median Household Income	$56,961	$41,629

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Texas	Arkansas
Income Tax Owed	$3,040	$4,906
After Tax Income	$36,960	$35,094
Income After Income & Property Tax	$33,141	$34,038
Maximum Disposable Income After Income, Property & Sales Taxes	$30,630	$31,093

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Texas	Arkansas
Income Tax Owed	$5,968	$8,933
After Tax Income	$54,032	$51,067
Income After Income & Property Tax	$50,213	$50,011
Maximum Disposable Income After Income, Property & Sales Taxes	$46,408	$45,684

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Texas	Arkansas
Income Tax Owed	$10,368	$14,433
After Tax Income	$69,632	$65,567
Income After Income & Property Tax	$65,813	$64,511
Maximum Disposable Income After Income, Property & Sales Taxes	$60,826	$58,930

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Texas	Arkansas
Income Tax Owed	$14,768	$19,933
After Tax Income	$85,232	$80,067
Income After Income & Property Tax	$81,413	$79,011
Maximum Disposable Income After Income, Property & Sales Taxes	$75,243	$72,176

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Texas	Arkansas
Income Tax Owed	$8,481	$13,525
After Tax Income	$91,519	$86,475
Income After Income & Property Tax	$87,700	$85,419
Maximum Disposable Income After Income, Property & Sales Taxes	$81,054	$78,029

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Texas	Arkansas
Income Tax Owed	$18,536	$26,330
After Tax Income	$131,464	$123,670
Income After Income & Property Tax	$127,645	$122,614
Maximum Disposable Income After Income, Property & Sales Taxes	$117,972	$112,007

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Texas	Arkansas
Income Tax Owed	$29,536	$40,080
After Tax Income	$170,464	$159,920
Income After Income & Property Tax	$166,645	$158,864
Maximum Disposable Income After Income, Property & Sales Taxes	$154,016	$145,121

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Texas	Arkansas
Income Tax Owed	$41,455	$54,749
After Tax Income	$208,545	$195,251
Income After Income & Property Tax	$204,726	$194,195
Maximum Disposable Income After Income, Property & Sales Taxes	$189,211	$177,395

FAQ

Does Texas or Arkansas have lower income taxes?

Texas’s income tax falls into the following range: None

Whereas Arkansas’s income tax is the following

• 2.00%: $0-$4,300
• 4.00%: $4,300-$8,500
• 4.90%: $8,501+

Does Texas or Arkansas have lower property taxes?

Texas has an average property tax rate of 1.25%

In comparison, Arkansas has an average property tax rate of 0.53%

Does Texas or Arkansas have lower sales taxes?

Texas has a state sales tax rate of 6.25% and an average local rate of 1.95% for a combined total rate of 8.20%.

In contrast, Arkansas has a state sales tax rate of 6.50% and an average local rate of 2.97% for a combined total rate of 9.47%.

Do you get to keep more money in Texas or Arkansas?

Based on median household income after income, property and sales taxes Texas gives you a maximum amount of disposable income of $56,961

In comparison, Arkansas gives you $41,629.

More Comparisons:

Texas vs Mississippi
Texas vs Kansas
Texas vs New Mexico
Texas vs Nebraska
Texas vs Idaho

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/