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Both live near and in water however a beaver is much larger than a muskrat. An adult beaver typically weighs between 40 and 60 pounds. An adult muskrat typically weighs only 2 to 5 pounds. While a beaver has a broad flat tail a muskrat has a thinner more ratlike tail. The muskrat tail actually has some flatness, but vertical like a boat rudder. Muskrats do not cut down trees. Muskrats and beaver are the only mammals that build their home in the water, but the muskrat lodge is smaller. They often dig dens into the bank; again the muskrat opening is smaller. Muskrats do not store food for the winter as beaver do and a harsh winter can greatly decrease a muskrat population. Muskrats are more prolific breeders capable of multiple litters in one season whereas beavers have one litter annually.

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