Cost of Living in Arkansas (AR)
Compare costs across 4 Arkansas cities. From home services to salaries, see how AR stacks up against the national average.
4
Cities
86
Avg Cost Index
$51K
Avg Income
Direct Answer
Arkansas's average cost index is 86, which is below the national baseline of 100. Conway is the most affordable tracked city in AR at index 82, while Fayetteville is the most expensive at index 89.
The gap between the cheapest and most expensive tracked cities is 7 index points, so state-level averages should be used as a map, not a final budget.
State cost overviewBLS, Census, HUD inputsLast verified May 2026
Arkansas Highlights: Most affordable city: Conway (index 82). Most expensive: Fayetteville (index 89). The gap between cheapest and most expensive is 7 index points.
What Drives the Statewide Cost Picture?
Average index
86/100
Arkansas is below the national cost baseline across tracked cities.
Cheapest city
Conway
Conway has a cost index of 82.
Most expensive
Fayetteville
Fayetteville has a cost index of 89.
Income average
$51K
Average median household income across 4 tracked AR cities.
Cheapest and Most Expensive Cities in Arkansas
| City | Population | Cost Index | Median Income | Tier |
|---|---|---|---|---|
| Little Rock | 203K | 86 | $50K | mid |
| Fayetteville | 94K | 89 | $49K | mid |
| Rogers | 73K | 88 | $56K | small |
| Conway | 68K | 82 | $48K | small |
Arkansas State Taxes (2026)
Headline tax rates that affect your real take-home pay and total cost of living in Arkansas.
State Income Tax
2-4.4%
progressive system
Combined Sales Tax
9.46%
6.5% state + 2.96% avg local
Property Tax (Effective)
0.61%
~$1,830/yr on a $300K home
Income tax: Arkansas uses a progressive income tax at 2-4.4%. No state estate tax. Estimate your take-home pay
State Planning Checklist
- Start with Conway if the priority is lowest recurring cost inside Arkansas.
- Compare Fayetteville against salary and tax advantages before assuming the higher-cost city is worse.
- Use city pages for rent, salary, insurance, and local service costs before making a relocation decision.