United States
Cost of living in Arkansas
Cost of living in Arkansas carries the lowest RPP in the country at 86.9, placing prices 13.1 percent below the US average and ranking the state 51st nationally. No state in the dataset has lower prices. Arkansas has the distinction of combining the cheapest price level with a competitive income tax structure: the top marginal rate was reduced to 3.9 percent for 2025 in a simplified two-tier bracket system, making it one of the lower progressive top rates in the South. State sales tax is 6.5 percent. The income tax reduction is part of a multi-year trend of rate cuts in Arkansas, improving the state's tax competitiveness relative to its already low price level. For buyers and renters, the gap between Arkansas costs and the national average is the widest available anywhere in the country.
Price level
86.9
US = 100
National rank
51st
of 51, dearest first
Income tax
3.9%
top rate
Sales tax
6.5%
state base rate
What your salary is worth in Arkansas
Because prices here sit at 86.9 against the national 100, the same paycheck stretches differently than it would elsewhere. These figures hold buying power constant: the salary listed is what you would need in Arkansas to live as you would on the reference amount in another place.
| Same lifestyle as | $60,000 | $100,000 |
|---|---|---|
| US average | $52,140 | $86,900 |
| California (dearest) | $47,100 | $78,500 |
| Arkansas (cheapest) | $60,000 | $100,000 |
Compare Arkansas with anywhere in the US
To live the same in California you need
$89,171
to match $70,000 in Arkansas
Price level, US = 100
The equivalent salary keeps your purchasing power constant: it is your pay scaled by the ratio of the two price levels. Regional Price Parities measure what a fixed basket of goods and services costs locally. Source: U.S. Bureau of Economic Analysis, 2024.
Arkansas in context
Arkansas produces the cheapest aggregate price level in the dataset, and housing is the principal reason. Little Rock, Fayetteville, Fort Smith, and Jonesboro all offer housing costs that are dramatically below national medians. The northwest Arkansas corridor around Fayetteville and Bentonville is an exception: driven by Walmart headquarters and a growing tech presence, it carries higher prices than the rest of the state, though still below the national average. The 3.9 percent income tax top rate is the result of deliberate policy cuts and compares favorably with other low-cost Southern states. Sales tax at 6.5 percent is toward the higher end for states in this price band, though local additions vary. Arkansas suits households who prioritize the lowest possible cost of entry into homeownership and are comfortable with a smaller metro or rural environment.
The closest state above Arkansas on price is Mississippi at 87.
Frequently asked questions
Is Arkansas expensive to live in?
Arkansas sits at a price level of 86.9 where the US average is 100, so a typical basket of goods and services costs about 13% less than the national norm. That ranks it 51st most expensive of 51 states. Housing is usually the largest single driver of the gap.
What salary do you need in Arkansas?
To match the buying power of $60,000 earned at the US average, you would need about $52,140 in Arkansas. The figure scales with the price level: a place dearer than average needs more, a cheaper one needs less. Your own number also depends on housing choice and household size.
How much tax does Arkansas charge?
Arkansas applies a top state income-tax rate of 3.9% and a base state sales tax of 6.5%. Top marginal rate reduced to 3.9% for 2025. Bracket structure is simplified two-tier for single filers per Tax Foundation. Local jurisdictions can add their own sales tax on top.
Cost of living in other states
Price levels are Regional Price Parities from the U.S. Bureau of Economic Analysis, Regional Price Parities (SARPP, MARPP), 2024 (public domain). State tax figures are the latest published rates from state revenue departments. All figures are estimates for general comparison and not financial advice; your own costs depend on housing, household size and lifestyle.