AR 4.4% vs TX 0%. TX saves $4,292/year income. Border states.

By CountryTaxCalc Research Team

Last Updated: April 2026

The Big Picture

💎 Arkansas

2-4.4%

Progressive

4.4% top rate (cut from 5.9%)

🤠 Texas

0%

No Income Tax

Zero income tax

Typical Annual Savings

At $100,000 income:

$4,292 income

That is TX saves $358/month back in your pocket!

Tax Savings by Income Level

IncomeAR TaxTX TaxSavings10-Year
$50,000 $1,960$0TX saves $1,960$19,600
$100,000 $4,292$0TX saves $4,292$42,920

Arkansas Pros and Cons

✅ Pros

  • Low property tax 0.64%
  • Ultra-affordable housing $170K
  • Ozark Mountains beauty
  • Military retirement exempt

❌ Cons

  • 4.4% income tax
  • Limited job market
  • Education ranks 42nd
  • Brain drain to TX/TN

Texas Pros and Cons

✅ Pros

  • 0% income tax
  • Dallas/Houston/Austin jobs
  • Business-friendly
  • No retirement tax

❌ Cons

  • Property tax 1.60% (high)
  • Housing $300K+ cities
  • Hot summers
  • Limited public transit
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Frequently Asked Questions

Q: TX vs AR savings?

TX saves $4,292/year income but higher property tax offsets

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