Cost of living in Arkansas: Affordable housing options across the state. Competitive utility rates. Low property taxes. Reasonable grocery and food expenses. Affordable healthcare services. Moderate transportation costs. Lower-than-average state income tax. Varied entertainment costs. Inexpensive education opportunities. No personal state tax on groceries.
Affordable housing options across the state.
Arkansas offers highly affordable housing options, with the state having the second-lowest cost of living in the U.S. The median home price is $234,167, and the median rent is $1,394, coupled with low property taxes and utility rates, making housing significantly more affordable than in most other states. For more information, visit the Cost of Living page for a detailed overview.
Competitive utility rates.
The average monthly electric bill in Arkansas is $137.19, with a relatively low electricity rate of 12.36 cents per kWh, making it more affordable than the national average and contributing to the state's lower cost of living. For more insights on energy costs in Arkansas, visit the Jackery Blog where you can find detailed articles on this topic.
Low property taxes.
Arkansas has one of the lowest property tax rates in the country, with an effective property tax rate of only 0.63%, making it one of the top 10 states for lowest property taxes. This significant advantage is highlighted on the website of the Arkansas Economic Development Commission, which provides detailed insights into the Cost Of Living in the Natural State. This low tax rate is an attractive feature for both current residents and those considering relocating to Arkansas, contributing to the state's appeal as a financially viable place to live and invest. As such, Arkansas stands out as a destination where economic and residential benefits go hand in hand.
Reasonable grocery and food expenses.
Arkansas boasts relatively low grocery and food expenses, with residents spending 20% less than the national average. On average, monthly grocery bills range between $200 and $233, and food prices in cities like Conway, Jonesboro, and Little Rock are significantly below the national average.
Affordable healthcare services.
Healthcare services in Arkansas, such as doctor check-ups and dentistry, are significantly more affordable than the national average, with costs being 11% lower, making healthcare more accessible for residents. For more detailed information on living expenses in Arkansas, you can explore the Cost of Living Calculator provided by Rentcafe. This affordability in healthcare is a highlight of Arkansas, benefiting the state's residents by reducing the financial burden associated with necessary medical services.
Moderate transportation costs.
Moderate transportation costs in Arkansas are significant, with drivers in the state facing annual costs of billions due to deteriorated, congested roads and lack of safety features. These issues translate to substantial additional expenses per driver annually in terms of vehicle operating costs, congestion-related delays, and traffic crash costs. To learn more about the impact on Arkansas roads and their economic implications, you can visit the NWA Council website for comprehensive insights.
Lower-than-average state income tax.
Arkansas has a lower-than-average state income tax, with rates ranging from 0% to 3.9%, depending on the income level. Recent legislation has further reduced the top individual income tax rate from 4.4% to 3.9% as of January 1, 2024. For more detailed information on the state's tax policies, you can visit the Arkansas Economic Development Commission Website for insights into Arkansas's tax structure and how it supports business and individual financial growth.
Varied entertainment costs.
In Arkansas, the average household spends significantly less on entertainment compared to the national average, with an average of $1,643 per household, making it one of the states that spend the least on entertainment. This is part of a broader trend where states in the Midwest and South tend to have lower entertainment spending. For more insights into the cost of entertainment across various states, you can explore the detailed analysis on the Cost of Entertainment in America website.
Inexpensive education opportunities.
Arkansas offers highly affordable education opportunities, particularly through institutions like UA Little Rock, which provides a 50% off scholarship guarantee for all incoming freshmen. This allows students to obtain a four-year degree for as low as $14,000 and even completely debt-free for those receiving Pell Grants and other state aid.
No personal state tax on groceries.
In Arkansas, groceries are not entirely tax-exempt; instead, they are taxed at a reduced rate of 1.5% plus any local rate, rather than being completely free from state tax. This nuanced approach highlights the unique nature of Arkansas's Sales Tax Policy on grocery items, balancing revenue generation with the essential nature of food items. Such a policy is crucial for understanding how tax regulations impact daily consumer expenses and state income strategies.