Lower Manhattan skyline across New York Harbor, United States

Home / Relocation inside the US / Arkansas

United StatesRelocation inside the US

Relocating to Arkansas: state taxes, residency rules and cost of living

Official figures for Arkansas: state income tax, capital gains, estate and inheritance tax, sales tax and the residency test, with rents, home values, price levels and safety from federal statistics.

Talk to a specialist
3.7%Top state income tax rate
6.5%State sales tax rate
$1,055Median gross rent per month
86.9Price level (US = 100)
Data updated 30 October 2026 Official sources: state revenue departments, Census Bureau, BEA, EIA, FBI Also served to AI agents via MCP

The short answer

What does it cost to live in Arkansas?

Arkansas state income tax: Graduated, top rate 3.7% from $26,400 of taxable income (single filer). Median gross rent is $1,055 per month and the price level is 86.9 against a US average of 100. Sales, estate and inheritance taxes and the residency rule are set out below with their sources.

Evidence: Official source · Machine-readable data · As of 30 October 2026

State tax rules

State taxes in Arkansas

Each rule below is read from the Arkansas revenue department or statute and checked against an independent table. Local taxes are not included.

State income tax
Graduated, top rate 3.7% from $26,400 of taxable income (single filer)
Source
Capital gains
For 2025 Arkansas taxes only 50 percent of net long-term capital gain (and exempts the part of a gain above 10 million dollars), while short-term gain is taxed as ordinary income.
Source
Who is a resident
Arkansas treats a person as a full-year resident if domiciled in Arkansas, meaning the place intended as a permanent home to which the person returns when away.
Source
Sales tax
Statewide rate 6.5%; local rates may be added
Source

State level only. Local income taxes (for example city or county taxes) and local sales taxes are added on top where they exist.

Cost of living

Housing, prices and safety in Arkansas

Housing, prices and safety in Arkansas
MetricValue
Median gross rent per month$1,055
Median home value$228,400
Property tax as a share of home value0.5%
Median real estate taxes paid per year$1,142
Median household income$65,588
Price level (US = 100)86.9
Housing price level (US = 100)58.2
Residential electricity price13.74 cents per kWh

Rent, home value, property tax and income: Census Bureau, American Community Survey 2025. Price levels: BEA Regional Price Parities 2024. Electricity: EIA, year to date through August 2026.

Back to the state overview · Methodology and sources

Questions

Living in Arkansas: common questions

Does Arkansas have a state income tax?

Arkansas state income tax: Graduated, top rate 3.7% from $26,400 of taxable income (single filer). Federal income tax applies in addition, as in every state.

What is the sales tax in Arkansas?

The statewide sales tax rate in Arkansas is 6.5%. Counties and cities may add local rates.

How much does housing cost in Arkansas?

In Arkansas the median gross rent is $1,055 per month and the median value of an owner-occupied home is $228,400, according to the Census Bureau American Community Survey 2025.

Who counts as a resident of Arkansas for income tax?

Arkansas treats a person as a full-year resident if domiciled in Arkansas, meaning the place intended as a permanent home to which the person returns when away.

Information, not tax or legal advice. Rates are statutory state rates for the stated year; local income, sales and property taxes, deductions and federal tax are not included. Statistics are the latest official releases for the year shown. Confirm your own position with the state revenue department or a tax adviser.

Plan the move with a specialist

Residence, tax domicile and timing decide what a move is worth. Our consultants help you weigh state tax, cost of living and your immigration status together, in confidence.

Book a consultation
ArkansasConfidential consultation
Consult