Cost of Living in Arkansas — Housing, Taxes & Everyday Expenses
Very low cost of living, affordable housing
Data: 2026-Q2 · BLS · HUD · KFFOverview
Arkansas is one of the most affordable states in the country with housing costs well below the national average. The economy is anchored by retail (Walmart HQ), food processing, and agriculture.
Housing costs
Median 1BR rent in Little Rock is approximately $850. Homeownership is highly accessible with median home prices around $200,000.
Tax reality
Arkansas has a top income tax rate of 4.7% as of 2024.
Everyday expenses
At a cost of living index of 85, Arkansas is about 15% cheaper than the national average of 100. A $60,000 salary in Arkansas provides purchasing power equivalent to roughly $85,000-$95,000 in California.
Salary reality in Arkansas
Cost of Living in Arkansas — FAQ
Is Arkansas affordable?
Yes. Arkansas has a cost of living index of 85, about 15% below the national average. Housing is especially affordable.
What is Arkansas's income tax rate?
Arkansas has a top income tax rate of 4.7% as of 2024, reduced from higher rates in recent years.