Cost of Living for Arkansas (2026)
Arkansas (AR) Key Facts
Cost of Living Index
87
National Average Index
100
Median Household Income
$52,000
Approximate Median Rent (1 B R)
$750/month
State Income Tax Rate
3.9%
How This Calculator Works in Arkansas
This cost of living calculator helps you compare salaries between Arkansas and other states or cities by adjusting for purchasing power differences. Enter a salary and a target location to see what equivalent income you would need. It uses Arkansas's cost of living index of 87 relative to the national average of 100 to provide an accurate comparison.
Arkansas Overview
Arkansas has a cost of living index of 87, where 100 represents the national average. Arkansas has one of the lowest costs of living in the nation. Fayetteville (home to Walmart HQ and the University of Arkansas) is the most expensive area but remains below the national average. The median household income is $52,000, which has a purchasing power equivalent of approximately $59,770 in an average-cost location.
How Arkansas Compares
Arkansas's cost of living index of 87 compares to Missouri's 89 and Tennessee's 90. Residents in Arkansas benefit from lower costs compared to the national average, meaning salaries stretch further here. The most affordable states like Mississippi (84) cost roughly 4% less than Arkansas, while the most expensive like Hawaii (192) cost 121% more.
| State | Top Rate | Notes |
|---|---|---|
| Missouri | COL Index: 89 | Missouri has a cost of living index of 89 and a median household income of $59,000. It is more expensive than Arkansas. |
| Tennessee | COL Index: 90 | Tennessee has a cost of living index of 90 and a median household income of $56,000. It is more expensive than Arkansas. |
| Mississippi | COL Index: 84 | Mississippi has a cost of living index of 84 and a median household income of $46,000. It is more affordable than Arkansas. |
The national average cost of living index is 100. Arkansas's index of 87 is below the national average. States like Mississippi (84) and West Virginia (84) have the lowest cost of living, while Hawaii (192) and DC (148) have the highest. Arkansas's median household income of $52,000 should be evaluated alongside its cost of living to understand real purchasing power.
Tips for Arkansas Residents
- 1Arkansas has one of the lowest costs of living in the nation. Fayetteville (home to Walmart HQ and the University of Arkansas) is the most expensive area but remains below the national average.
- 2Arkansas's median household income of $52,000 has a real purchasing power of about $59,770 when adjusted to the national average. Compare this figure, not the raw salary, when evaluating cross-state moves or job offers.
- 3Arkansas's top state income tax rate of 3.9% further reduces purchasing power beyond what the cost of living index alone shows. Factor in taxes when making state-to-state comparisons.
- 4When comparing job offers between states, adjust salaries by the cost of living index. A $60,000 salary in a state with an index of 90 provides more purchasing power than $70,000 in a state with an index above 105.
- 5Look beyond the state average — costs can vary dramatically within Arkansas between metro areas, suburbs, and rural communities. Research the specific city or county where you would live.