A good salary in Arkansas provides excellent purchasing power due to the state’s very low cost of living.

Quick Answer

Situation Good Salary Comfortable Salary
Single, Arkansas average $42,000-$55,000 $32,000-$42,000
Single in Little Rock $45,000-$60,000 $38,000-$45,000
Single in Fayetteville $50,000-$65,000 $42,000-$50,000
Family of 4 $70,000-$90,000 $55,000-$70,000

Key advantage: Arkansas’s cost of living is 14% below the national average, among the lowest in the country.

Why Arkansas Is Affordable

Arkansas benefits from:

  • Very low housing costs (median home price ~$185,000)
  • Low property taxes (0.62% effective rate)
  • Affordable utilities and groceries
  • Growing job market especially in Northwest Arkansas

Good Salary by Arkansas City

Little Rock

Little Rock is the state capital and largest city.

Category Single Person Family of 4
Minimum to survive $30,000 $52,000
Comfortable $42,000 $70,000
Good lifestyle $55,000+ $90,000+

Median home price: ~$215,000
Average rent (1BR): ~$950/month

Fayetteville/Northwest Arkansas

Northwest Arkansas is a booming area home to Walmart, Tyson, and J.B. Hunt headquarters.

Category Single Person Family of 4
Minimum to survive $35,000 $58,000
Comfortable $48,000 $78,000
Good lifestyle $65,000+ $100,000+

Median home price: ~$340,000
Average rent (1BR): ~$1,150/month

Fort Smith

Fort Smith offers very affordable living on the Oklahoma border.

Category Single Person Family of 4
Minimum to survive $28,000 $48,000
Comfortable $38,000 $62,000
Good lifestyle $50,000+ $80,000+

Median home price: ~$165,000
Average rent (1BR): ~$750/month

Hot Springs

Hot Springs offers affordable resort-town living.

Category Single Person Family of 4
Minimum to survive $28,000 $48,000
Comfortable $38,000 $65,000
Good lifestyle $50,000+ $85,000+

Median home price: ~$195,000
Average rent (1BR): ~$850/month

How Much House Can You Afford in Arkansas?

Annual Salary Max Home Price (28% rule)
$40,000 $140,000-$160,000
$55,000 $200,000-$220,000
$70,000 $260,000-$290,000
$90,000 $340,000-$370,000

Arkansas vs. Other States

State $55K Salary Take-Home Cost of Living Index
Arkansas $45,200 86
Texas $46,500 93
Oklahoma $44,800 87
Tennessee $46,500 90

Arkansas offers exceptional value for your salary.

Arkansas State Income Tax

Arkansas has a progressive income tax with rates from 0% to 4.4%:

  • Recent reforms have lowered the top rate from 5.5%
  • First $5,000 is taxed at 0% (effective 2024+)
  • Top rate of 4.4% applies to income over $24,300

Top Industries in Arkansas

  1. Retail (Walmart HQ) — Average salary $65,000+
  2. Transportation/Logistics (J.B. Hunt) — Average salary $55,000+
  3. Food Processing (Tyson) — Average salary $50,000+
  4. Healthcare — Average salary $60,000+
  5. Manufacturing — Average salary $48,000+
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