Arkansas Cost of Living Calculator 2026

Compare cost of living in Arkansas to other US states and cities. See equivalent salary needed when relocating.

By Konstantin Iakovlev · Updated October 19, 2026 · Methodology

Current Annual Salary

Current City

Target City

Equivalent Salary Needed

$81,981.98

Difference

-$18,018.02

Cost Difference

-18.02%

Cost of Living Comparison

Austin, TX Index	111
Little Rock, AR Index	91
National Average	100
Your Current Salary	$100,000.00
Equivalent in Little Rock, AR	$81,981.98
You would need less	$18,018.02

Breakdown by Category (Annual)

Housing	-33.33%
Current (Austin, TX)	$40,000.00
Target (Little Rock, AR)	$26,666.67
Food & Groceries	-4.00%
Current (Austin, TX)	$15,000.00
Target (Little Rock, AR)	$14,400.00
Transportation	-10.00%
Current (Austin, TX)	$15,000.00
Target (Little Rock, AR)	$13,500.00
Healthcare	-13.33%
Current (Austin, TX)	$10,000.00
Target (Little Rock, AR)	$8,666.67

Cost of living indices are approximate and based on aggregate data. Individual expenses may vary significantly. Housing costs tend to have the largest impact when moving between cities.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

Arkansas Cost of Living Overview

Understanding the cost of living in Arkansas means looking at taxes, housing, and everyday expenses together. Arkansas levies a progressive income tax, which directly impacts take-home pay. The average property tax rate is 0.54%, and the state sales tax rate is 6.50%.

Arkansas consistently lands among the more affordable states, and its tax mix is a big reason. The income tax tops out at just 3.9%, the average effective property tax rate is a low 0.54%, and the state sales tax base is 6.5% before local add-ons. Housing is the heavier lever for most budgets, and here it tends to work in residents' favor: modest home prices paired with light property taxes mean the cost of renting or owning eats a smaller share of pay in places like Little Rock, Fort Smith, or fast-growing Fayetteville.

Comparing two job offers by salary alone misses the point. What matters is the money left after taxes and housing, and a bigger gross number in a costlier metro can leave less spendable income than a smaller one in a low-cost Arkansas town once rent, the 6.5%-plus sales tax on daily purchases, and property tax come out. A capped income tax and below-average property tax leave more of each paycheck free for housing, food, and savings than residents would keep in many higher-tax states.

Arkansas Cost Snapshot (2026)

Avg. Property Tax Rate	0.54%
State Sales Tax Rate	6.50%
Minimum Wage	$11.00/hr
State Income Tax	Progressive (up to 3.9%)
State Disability Insurance (SDI)	No
Estate / Inheritance Tax	No
Local/City Taxes	Local city and county sales taxes up to about 6.1% (Tax Foundation, midyear 2026)

City indexes (U.S. average = 100) are planning estimates on one scale. The 29 cities added in August 2026 were reconciled from BestPlaces city pages, the Payscale and RentCafe cost-of-living calculators (both built on the C2ER Cost of Living Index) and the MERIC state index for Q1 2026; the original 30 large metros date from April 2026 and have not been re-checked since. Local rents and home prices can differ a lot within a metro, and the equivalent salary does not account for income taxes.

Official Sources:

Arkansas Cost of Living FAQ

Is Arkansas an affordable state to live in?

It generally ranks as one of the cheaper states, supported by below-average property taxes at a 0.54% effective rate and modest housing costs across much of the state. A 3.9% cap on the income tax also limits what residents hand to the state. Costs still vary by city, with growing metros like Fayetteville running higher than smaller towns.

How do Arkansas taxes shape a household budget?

Three taxes do most of the shaping: income tax up to 3.9%, sales tax starting at 6.5% on everyday purchases, and property tax averaging 0.54% of home value. The low property tax leaves more room in a budget than in higher-tax states, while sales tax is the one felt most often because it hits routine shopping. Local sales taxes can push that everyday rate higher depending on the city.

How should I compare a salary between two Arkansas cities?

Weigh take-home pay against local housing rather than the gross figure. The state income tax and the 6.5% state sales tax are uniform statewide, so the real differences between cities come from rent, home prices, and county millage rates. A smaller paycheck in a low-cost area can leave more spendable income than a larger one where housing runs expensive.

Does Arkansas's low property tax make it more affordable than the sticker price suggests?

Often, yes. A 0.54% average effective property tax, against a national average near 0.9%, means homeowners keep more each year than they would in many states. Paired with the 3.9% income tax cap, those yearly savings can offset the 6.5% sales tax and let a household budget stretch further over time.