If you are comparing the cost of living and housing in Texarkana, Arkansas, the biggest surprise is this: the answer is not just about the listing price. Because Texarkana works as a bi-state corridor, many buyers compare homes on the Arkansas and Texas sides at the same time. If you want a clearer picture of what your monthly budget may actually look like, this guide will walk you through home prices, rent, utilities, taxes, and key cost factors so you can plan with confidence. Let’s dive in.
Housing Costs in Texarkana Arkansas
Texarkana, Arkansas remains a relatively affordable option for buyers who want to own a home in the Texarkana area. In the 2020 through 2024 Census snapshot, the median owner-occupied home value in Texarkana, Arkansas was $170,200. That is very close to Texarkana, Texas at $171,500.
Current market data shows a wider gap between the two sides. As of May 31, 2026, Zillow reported a typical home value of $169,100 in Texarkana, Arkansas and $202,958 in Texarkana, Texas. For many buyers, that difference makes the Arkansas side worth a closer look.
Monthly Ownership Costs Matter
Home value is only part of the story. The Census snapshot shows median monthly owner costs with a mortgage at $1,262 in Texarkana, Arkansas. On the Texas side, that figure was $1,608.
That gap matters if you are trying to stay within a monthly payment target. Even when home values look similar in older snapshot data, the monthly carrying cost can still be lower on the Arkansas side.
Rent in Texarkana Arkansas
If you are relocating and plan to rent before buying, Texarkana, Arkansas may also offer a lower starting point. The Census snapshot lists median gross rent at $909 in Texarkana, Arkansas. In Texarkana, Texas, median gross rent was $1,010.
For renters who want time to explore the area before purchasing, that difference may help free up room in the budget. It can also make a short-term transition into the market a little more manageable.
Why Texarkana Is a Cross-Border Market
Texarkana is not a typical one-city market. Texarkana Water Utilities serves both cities and the surrounding area, which is one reason many people shop both sides of the state line instead of treating them as fully separate housing markets.
That means your decision often comes down to the full cost of ownership for a specific property. A home in Arkansas may look appealing based on price alone, but utilities, local taxes, and location inside or outside city limits can all affect your monthly budget.
Utility Costs to Include in Your Budget
When you estimate your housing costs, be sure to look beyond principal and interest. Water, sewer, and trash service are part of everyday ownership expenses, and they vary depending on where the home is located.
For Arkansas-side homes inside city limits, Texarkana Water Utilities lists these current residential charges:
- $0.40 service fee for water
- $1.00 infrastructure fee for water
- $17.82 minimum water charge for 0 to 2,000 gallons
- $1.00 infrastructure fee for sewer
- $20.96 minimum sewer charge for 0 to 2,000 gallons
The City of Texarkana, Arkansas also lists a residential refuse rate of $24.45. That is another recurring cost to include when you build your monthly budget.
Outside-city residential customers pay 1.5 times inside-city utility rates. So if you are considering a property outside city limits, ask for recent utility bills before assuming the monthly total will be similar.
Comparing Utility Costs the Right Way
It is easy to compare the wrong numbers when looking at the Arkansas and Texas sides. The utility schedules use different fee structures, so a simple base-fee comparison does not tell you much.
A better approach is to estimate likely total monthly bills based on household size, expected water usage, and whether the property is inside or outside city limits. This is especially helpful if you are comparing several homes across the state line.
Taxes in Texarkana Arkansas
Taxes are one of the most misunderstood parts of the Texarkana cost-of-living conversation. Many people assume the choice is simple because Arkansas has a state income tax and Texas does not. In reality, the border-city rules make the comparison more nuanced.
According to the Arkansas Department of Finance and Administration, a resident of Texarkana, Arkansas can exempt income earned while a resident of the city from Arkansas income tax. Texarkana, Texas residents working in Texarkana, Arkansas may also exempt wages earned in Texarkana, Arkansas. Other Arkansas-sourced income can still be taxable.
For many in-city residents and some commuters, that border-city exemption can materially reduce the usual Arkansas-versus-Texas income-tax gap. This is one reason it helps to look at your own work location and income situation instead of relying on broad assumptions.
Property Tax Context on the Arkansas Side
Property taxes should also be reviewed carefully on a home-by-home basis. For Arkansas-side property tax context, the state’s 2026 millage table lists Texarkana city at 10.5 mills and Miller County at 8.8 mills before school-district levies.
That does not mean every property will carry the same tax bill. Exact totals can vary by parcel address, so it is smart to verify the current tax picture for any home you are seriously considering.
Texas-Side Tax Notes Still Matter
Even if you are leaning toward Arkansas, it helps to understand the full cross-border comparison. Texas has no state income tax, and the state notes that there is no state property tax because local taxing units set and collect property taxes.
In practical terms, that means Texas-side buyers still need to review local property taxes and other local assessments carefully. The state-line comparison is not as simple as many people expect.
Income and Affordability
Cost of living always ties back to income. The Census snapshot shows median household income of $45,835 in Texarkana, Arkansas and $50,573 in Texarkana, Texas.
While income is higher on the Texas side in that snapshot, the monthly owner cost is also higher. On a rough back-of-the-envelope basis, the Texas side may carry a higher payment-to-income burden, which can influence affordability for some households.
How Fast Homes Are Moving
If you are planning a move, market pace also affects your strategy. Zillow’s current data showed homes going to pending in about 63 days on the Arkansas side and 52 days on the Texas side.
That suggests the Texas-side market was moving a bit faster at that point in time. For buyers, the Arkansas side may offer a little more room to compare options, but each property still needs to be evaluated on its own merits.
How Texarkana Compares to Nearby Markets
Texarkana also stands out when you compare it to nearby regional markets. Zillow’s current data placed Texarkana, Arkansas at $169,100, below Longview, Texas at $235,208 and above Shreveport, Louisiana at $149,661.
That puts Texarkana in a relatively affordable position for buyers who want access to the region without paying as much as some neighboring markets. If you are relocating from a higher-priced area, that can create more flexibility in your home search.
What Buyers Should Focus On
If you are trying to decide whether Texarkana, Arkansas fits your budget, focus on the full monthly picture instead of one headline number. A lower home price is helpful, but it is only one part of the cost-of-living equation.
Here are the main items to compare for each property:
- Purchase price
- Estimated monthly mortgage payment
- Property taxes by address
- Water and sewer costs
- Trash service
- Whether the home is inside or outside city limits
- Whether the border-city income-tax exemption applies to your situation
This kind of side-by-side review can help you avoid surprises and make a more confident decision.
Why Local Guidance Helps
Because Texarkana spans two states, even simple cost questions can become property-specific very quickly. Utility structures, tax details, and cross-border rules can all change the real monthly cost of a home.
That is where local guidance matters. Working with a broker who understands both the Arkansas and Texas sides can help you compare properties more clearly, especially if you are relocating or buying across the state line.
If you are thinking about buying or selling in Texarkana, Teresa Liepman can help you evaluate the full picture and make a move with confidence.
FAQs
What is the median home value in Texarkana, Arkansas?
- The 2020 through 2024 Census snapshot lists the median owner-occupied home value at $170,200, while Zillow reported a typical home value of $169,100 as of May 31, 2026.
What is the median rent in Texarkana, Arkansas?
- The Census snapshot lists median gross rent in Texarkana, Arkansas at $909.
Are homes in Texarkana, Arkansas cheaper than Texarkana, Texas?
- Current Zillow data shows a lower typical home value on the Arkansas side at $169,100 versus $202,958 on the Texas side, though older Census snapshot values were much closer.
Do Texarkana, Arkansas residents pay Arkansas income tax?
- Under Arkansas border-city rules, a resident of Texarkana, Arkansas can exempt income earned while a resident of the city from Arkansas income tax, though other Arkansas-sourced income may still be taxable.
What utility costs should buyers include for a Texarkana, Arkansas home?
- Buyers should factor in water, sewer, and trash service, including TWU charges and the City of Texarkana, Arkansas residential refuse rate of $24.45, plus higher utility rates for homes outside city limits.
Is Texarkana, Arkansas affordable compared with nearby markets?
- Based on current Zillow data, Texarkana, Arkansas at $169,100 is below Longview, Texas at $235,208 and above Shreveport, Louisiana at $149,661, making it a comparatively affordable regional option.
