Texarkana TX vs AR: 4 things that change

Texarkana is one town split by State Line Avenue. Buying or owning a home works differently on each side in four ways.

1. State income tax

Texas has no state income tax. Arkansas does, with one big exception here: if you live inside the city limits of Texarkana, Arkansas, the income you earn is exempt from Arkansas income tax. You still file an Arkansas return and claim the exemption on it, and you need a street address inside the city limits (a P.O. box or rural route doesn’t count). Live outside the city limits, in the rest of Miller County or another Arkansas town, and Arkansas income tax applies. What any of this means for you depends on your income and situation, so have a tax preparer run your numbers before you decide.

Sources: Texas Comptroller, accessed Oct 2026; Arkansas DFA, Border City Exemption (Subject 302), accessed Nov 2026. Not tax advice.

2. Property taxes in Texarkana TX vs AR: homestead exemption or credit

Both states have a homestead tax break, but they work differently.

In Texas, if the home is your main residence, school districts have to give a homestead exemption of $140,000. An exemption comes off the amount the school district can tax. It's not money off your bill.

In Arkansas, there's a homestead property tax credit of up to $500 a year, rising to up to $600 starting with 2026 tax bills. A credit comes off the bill itself.

So one comes off the amount being taxed, and the other comes off the bill. You can't line up the two numbers and pick the bigger one. What the difference works out to for a particular house depends on that house and the local tax rates.

To find out, look up the parcel: the Bowie Central Appraisal District in Texas, or the Miller County Assessor in Arkansas. In both states, you have to apply. It doesn't happen on its own.

Sources: Texas Comptroller, Property Tax Exemptions page; Arkansas DFA, Property Tax Relief page. Both accessed Oct 2026.

3. Paperwork before a home tour

In Texas, since January 1, 2026, state law requires a written buyer agreement before an agent shows you a house. It spells out what the agent will do for you, how long the agreement lasts and how the agent gets paid. It also has to say that broker pay isn't set by law and is negotiable. Arkansas rules are different, and I'll go over how it works there before you start.

Source: Tex. Occ. Code 1101.563; TREC, accessed Oct 2026. More in the Texas buyer agreement guide

4. The pace of the market

Homes on each side don't always sell at the same pace. Redfin tracks Texarkana, Texas and Texarkana, Arkansas separately, and their monthly numbers move around. A citywide number also doesn't tell you what any one house will sell for. That depends on the house. If you'd like this month's numbers for either side, ask me.

The short version

Which side makes sense depends on your numbers and the house.

Questions? Call or text me.

General information, not tax or legal advice.