Income Reality in Arkansas — Taxes, Housing & Salary
Very low cost of living, affordable housing
Data: 2026-Q2 · BLS · HUD · KFFIncome tax overview
Arkansas has a top income tax rate of 4.7% as of 2024.
Housing snapshot
Median 1BR rent in Little Rock is approximately $850. Homeownership is highly accessible with median home prices around $200,000.
Cost of living summary
At an index of 85, Arkansas is about 15% cheaper than the national average of 100.
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.
Salary reality examples
Comfortable in most Arkansas cities. Housing is very affordable relative to take-home pay.
Strong purchasing power. Savings potential is meaningful at this range.
High flexibility statewide. Homeownership is easily accessible.
FAQ — Income Reality in Arkansas
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.
Related tools
Cost of Living Index from C2ER. This is a picture, not a verdict.