Cost of Living in Arkansas
Things cost about ▼ 13% less in Arkansas than the national average.
What Things Cost in Arkansas
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Arkansas is one of the cheapest states in the country, with a cost of living roughly 13.5% below the national average. Housing is the standout: at about 32% below the national average, it is one of the most affordable housing markets in the United States. The median home price sits around $162,500, less than half the national median. What makes Arkansas increasingly interesting is the northwest corner of the state, where Bentonville (Walmart's headquarters) and Fayetteville (University of Arkansas) have created a pocket of economic growth with high-quality amenities that remain far cheaper than comparable communities in other states.
Arkansas at a Glance
Taxes in Arkansas
Arkansas's state income tax tops out at Up to 3.9%. The combined sales tax averages 6.5%. Property taxes run about 0.62% of home value, which on a $162,500 median home means roughly $1,008/year.
Cities in Arkansas
Ranked from least to most expensive. Index 100 = national average.
Explore Arkansas
FAQ About Arkansas
Arkansas is one of the five cheapest states for cost of living, running about 13.5% below the national average. Housing is the biggest bargain at roughly 32% below average. The median home price is around $162,500 and median rent is about $790 per month. A household earning $50,000 in Arkansas has purchasing power comparable to earning roughly $58,000 in an average-cost state.
Bentonville has become one of the most talked-about small cities in America. As Walmart's headquarters city, it benefits from corporate investment in local infrastructure, trails, arts, and dining. The cost of living is below the national average, the school system is strong, and the outdoor recreation (especially mountain biking) is nationally recognized. Housing costs have risen with the city's popularity but remain far below comparable communities in states like Colorado or North Carolina.
Arkansas has a graduated income tax topping out at 4.4%, a 6.5% state sales tax (averaging about 9.47% with local additions), and an effective property tax rate of about 0.63%. The state has been gradually reducing its income tax rate. While the sales tax is relatively high, the overall tax burden is offset by very low property taxes and housing costs.