Salem, Arkansas Property Taxes
The median property tax rate in Salem, Arkansas is 0.75%, which is lower than both the national median of 0.99% and the Arkansas state median of 0.84%. With a median home value of $67,800 in Salem, the typical annual property tax bill amounts to $471, significantly less than the national median of $2,690. Property taxes in Salem are calculated based on the tax assessed value, which is often below the market value due to various exemptions, such as those for primary residences and agricultural properties. Understanding Salem's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to significant annual savings. Whether you're in the heart of Salem or another part of the city, grasping the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Salem, Arkansas Property Tax Bill Calculator
$100,000
$2,500,000
$5,000,000
Average Tax Rate
0.84%
Estimate Property Tax Bill
$1,680
Ownwell’s Salem Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Salem with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Salem to estimate your property tax bill. This insightful tool helps you understand potential tax liabilities. If you’re interested in seeing trends on a neighborhood level, scroll down to find more localized information. Your property’s assessed value is the value assigned by the county for property tax calculations, accounting for any exemptions that may apply.
Property Tax Rates Across Salem, Arkansas
Property taxes in Salem, Arkansas, are crucial for funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Salem is 0.75%, which is lower than the U.S. national median of 0.99%. Local government entities within Salem set these rates annually, and they can vary significantly across different neighborhoods. Each year, Salem estimates its required budget to maintain services for the upcoming fiscal year, then divides this budget by the total value of all taxable property within the jurisdiction to calculate the property tax rate. While tax rates and budgets are influenced by laws and voter input, this calculation forms the basis of setting property tax rates. The data below compares Salem's effective property tax rate to other counties in Arkansas and the national median. For comparison, the 72576 zip code has the highest median property tax rate of 0.75%, while the same zip code also has the lowest median tax rate of 0.75%. Understanding how these cities compare with Salem provides valuable insights into the varying tax landscape across Fulton County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Salem Tax Rate
0.75%
Average Fulton County Tax Rate
0.75%
Average Arkansas Tax Rate
0.84%
Average United States Tax Rate
0.99%
Property Tax Rates Across Salem, Arkansas
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 72576 | 0.55% | 0.67% | 0.75% | 0.75% | 0.85% |
Source: Ownwell
Property Tax Assessment Values Across Salem, Arkansas
In Salem, Arkansas, understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes. The market value is the price a willing buyer would pay a willing seller in an open and competitive market, influenced by factors like location, property condition, and economic trends. This value is estimated by the Fulton County Appraisal District for tax purposes. In contrast, the assessed value is the market value minus any applicable exemptions or limits based on local laws and available programs. The assessed value is then used to calculate your property taxes by multiplying it by the combined tax rates of all relevant taxing entities. In Salem, assessment notices are typically mailed out in the spring, usually by mid-April. These notices provide homeowners with both the market and assessed values, along with an estimate of the annual property tax bill. By understanding the distinction between these valuation concepts, property owners can better navigate their tax responsibilities and comprehend how their property taxes are determined. Being aware of these valuation processes in Salem helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. Notably, the highest and lowest median tax bills in Salem are both $471.00, found in the 72576 zip code.
Average Salem Assessed Value
$67,800
Average Fulton County Assessed Value
$68,050
Average Arkansas Assessed Value
$113,950
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Salem, Arkansas
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 72576 | $20,840 | $39,300 | $67,800 | $101,650 | $148,630 |
Source: Ownwell
Property Tax Bills Across Salem, Arkansas
In Salem, property tax bills are calculated based on the assessed value of your home. The assessed value is typically a percentage of the market value of the property. For instance, with a median home price of $67,800, the assessed value is used to determine the tax obligation. Various factors such as the property's location, size, and condition can influence this assessed value. Once the assessed value is determined, a tax rate is applied. In Fulton County, this rate can result in varying tax bills. For example, the 25th percentile tax bill is around $272, while at the 75th percentile, homeowners might pay approximately $725. Those at the 90th percentile can see tax bills as high as $1,060. Comparatively, the median property tax rate in Salem is relatively lower than the national median of 0.99%. This can be beneficial for homeowners, making property ownership more affordable. However, it's essential to stay informed about these factors to manage financial expectations and obligations effectively.
Average Salem Tax Bill
$471
Average Fulton County Tax Bill
$483
Average Arkansas Tax Bill
$877
Average United States Tax Bill
$2,690
Property Tax Bills Across Salem, Arkansas
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 72576 | $147 | $272 | $471 | $725 | $1,060 |
Source: Ownwell