Retirement Cost of Living in Arkansas

When considering retirement in Arkansas, most of the talk surrounds the activities, such as the hunting, fishing, boating, and golfing in the state. This is largely because of the great weather, with the exception of the tornado seasons. However, while activities and outdoor life is always nice, it should always come secondary to the actual cost of living compared to the retirees’ means. With it becoming tougher in today’s world to survive on pension, here is a look at the cost of retirement in Arkansas.

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1. Arkansas Home Prices - The first thing to consider when trying to find a retirement home in any state is the median cost of homes, so you will have an idea of the price you are looking for. When it comes to the median cost of homes in the state of Arkansas, Zillow reported that the value is $114,200, and even in the spots where the prices are higher, they are still lower than the national average of $178,400. One of the top spots for retirement in Arkansas is Fayetteville, which has a median home cost of $170,800, making the state very affordable. 
2. Cost of Living - The cost of living in Arkansas is also very affordable, which makes the low home prices even more attractive. The average for Arkansas is 14.4 percent below the national average. Property taxes in Arkansas are below average and the cost to build new homes in the state is also low. With the large number of retirement communities, and what they offer, as well as discounts on hunting and fishing for those seeking retirement in Arkansas, the cost of living is even more affordable.

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3. Tax Burden - While the house costs are nice, there is still a problem in Arkansas when it comes to taxes, as Arkansas ranks 40th in the United States when it comes to the worst states for taxpayers. The average state and local taxes for Arkansas is $6,451. Even when re-ranked based on the cost of living in the state, Arkansas still ranked 28th. The income tax in Arkansas is seven percent and private, state and federal retirement pensions are not exempt.
4. Property Taxes - Once again, the only area where Arkasnsas rank well for taxes is in the area of property taxes. Arkansas ranks 35th in the U.S. for these taxes. This really adds on to the nice cost of living when it comes to home ownership and is the only thing that makes retirement in Arkansas look good when it comes to taxes.

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