State profile
Arkansas Cost of Living Comparison
Arkansas has the lowest 2024 price level of all 51 jurisdictions, 86.937, and it is lowest on goods as well (93.597), not just on rents.
Updated
86.937Arkansas all-items price level, U.S. = 100 · rank 1 of 51, lowest first
| Measure | Arkansas | Mississippi | First − second |
|---|---|---|---|
| All-items price level | 86.937 | 86.953 | −0.016 points |
| Rent price level | 58.203 | 56.456 | +1.747 points |
| Home value | $188,000±$1,754 | $169,800±$1,198 | +$18,200 |
| Two-bedroom gross rent | $907±$8 | $913±$13 | −$6 |
| Household income | $60,773±$467 | $56,447±$539 | +$4,326 |
| Real estate taxes paid | $1,040±$13 | $1,215±$12 | −$175 |
$4,000 of monthly spending in Arkansas scales to $4,001 in Mississippi at the 2024 all-items price ratio.
BEA 2024 and ACS 2020–2024; ± marks the Census 90% margin. How to read a gap
The lowest price level in the country
Most low-cost states earn their rank through housing alone. Arkansas is broader than that: goods rank first (lowest) of 51, housing third at 58.203, utilities seventh at 74.731 and other services eighth. Few household budgets will find a category where the state is expensive relative to the nation.
Housing figures confirm it. Arkansas sits 49th or 50th of 51 on home value, two-bedroom rent and mortgaged owner costs alike. Renters spend 27.6% of income on gross rent, near the bottom of the table.
Incomes are low too, but prices close part of that gap. Median household income is $60,773, rank 48. Real per capita personal income, which adjusts for the state's price level, is $55,219 and ranks 38th, ten places higher than the nominal household median.
The relative price level has drifted down. Arkansas stood at 88.165 in 2020 and 88.902 in 2021 before settling near 86.9 for 2022 through 2024; the net change since 2020 is minus 1.228 points.
The state tax mix is distinctive for its property line. Property taxes supplied 12.9% of the state government's fiscal 2025 collections, $521 per resident, a far larger state share than in any of its six neighbours (none above 1.2%), alongside general sales at 40.9% and individual income at 21.8%. Total collections were $4,032 per resident, rank 27, which is more per head than Texas next door even though Arkansas prices are lower. The state's graduated income tax reached a 3.9% top rate for 2025.
Of six neighbours, only Mississippi comes close on price level (86.953); Texas is the most expensive at 97.057, with a two-bedroom median of $1,395. Mississippi is also the nearest price level nationally.
Category price levels in Arkansas
| Category | Parity | Rank, low first | vs U.S. |
|---|---|---|---|
| All items | 86.937 | 1 | 13.06% below |
| Goods | 93.597 | 1 | 6.40% below |
| Housing (rents) | 58.203 | 3 | 41.80% below |
| Utilities | 74.731 | 7 | 25.27% below |
| Other services | 95.312 | 8 | 4.69% below |
| Real income per person, 2017 $ | $55,219 | 38 | U.S. $59,195 |
All items by year: 2020 88.165 · 2021 88.902 · 2022 86.913 · 2023 86.810 · 2024 86.937 (−1.228 since 2020). How to read categories and trends
Monthly housing costs
- Owners with a mortgage
- $1,345±$9 · rank 50, high first
- Owners without a mortgage
- $437±$3 · rank 49
- Renters: gross rent / income
- 27.6%±0.4 · rank 45
Arkansas state tax collections, FY2025
$12.56 billion in total, $4,032 per resident. Scope of these figures
| Tax | FY2025 | Share | Per resident |
|---|---|---|---|
| Individual income | $2.74 billion | 21.8% | $878 |
| General sales | $5.14 billion | 40.9% | $1,649 |
| Property | $1.62 billion | 12.9% | $521 |
| Motor fuel | $590.5 million | 4.7% | $190 |
| Other selective sales | $1.18 billion | 9.4% | $380 |
| Corporate income | $644.4 million | 5.1% | $207 |
| Licenses | $461.9 million | 3.7% | $148 |
| Severance | $37.5 million | 0.3% | $12 |
| Other taxes | $147.3 million | 1.2% | $47 |
Arkansas income tax on wages
For tax year 2025, the Department of Finance and Administration's indexed brackets tax net income up to $5,599 at 0%, then 2%, 3% and 3.4%, reaching 3.9% from $26,400 through $94,700, with bracket adjustments for incomes just above that. Changes enacted for 2026 were not reviewed for this page.
Read : Arkansas Department of Finance and Administration: 2025 indexed tax brackets. Price parities exclude income taxes.
Arkansas beside its neighbours
Before you budget a move
Arkansas has a below-national broad price level in the verified BEA release. That finding is useful for purchasing-power screening, but it does not settle a move to a particular neighborhood. A lower price index can coexist with a smaller offered salary, a different commute or a larger first-year moving expense.
When comparing Little Rock and a northwest Arkansas destination, price the same dwelling size and travel requirements. Keep a security deposit or home down payment in the one-time column. Monthly groceries, utilities and commuting belong in recurring cash, which the historical state index cannot itemize.
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