Everyone asks me about taxes here in NW Arkansas compared to where they are moving from. It’s a hard question to answer, since it depends on where the person is moving from. I recently came across an article on the Internet that said Arkansas ranked in the middle of most-to-least tax-friendly states. According to this article, an Arkansasan’s tax burden is 10.3% of his/her per capita income, which makes Arkansas #27 on the list.
For property taxes, the rule of thumb that we realtors(r) use in Washington and Benton Counties, is that property taxes are slightly less than 1% of the purchase price of the home. In addition, there is a $300 per year homestead credit for one's personal residence.
In addition, homeowners in Arkansas have who are at least 65 years age qualify to have their appraised evaluation capped. This provision helps senior citizens remain in their homes instead of being taxed out of them as evaluations increase. And still another good point to note about Arkansas: it is heir-friendly. There is no estate tax in Arkansas.
The bottom line is that all political entities need revenue to provide services and that money must come from the people. All in all, I think Arkansas is very tax friendly.
For more information:
Washington and Benton County Millage rates (for local property taxes):
http://www.co.washington.ar.us (click on information and then on Millage rates)
General information about Arkansas taxes