Alabama
AL • South
Quality of Life Score
47.01
State Comparison
Alabama vs Arkansas
Arkansas is cheaper overall, while $100 goes further in Alabama, Alabama has higher incomes, Arkansas has lower state income tax, and Arkansas gets more sunshine.
Alabama
13
/ 31
metrics won
Score
VS
Arkansas
18
/ 31
metrics won
AR wins Housing
AR wins Quality of Life
AR wins Climate
AL wins Demographics
Quality of Life
Composite score — income, affordability, education, health, and safety.
Alabama
winner
vs
Arkansas
Alabama scores higher on quality of life — 4.94 points difference.
Overview
Key differences overview
These cards keep the comparison factual first, so the biggest tradeoffs in affordability, housing, taxes, politics, climate, and day-to-day living are easy to scan.
Overall Affordability
Arkansas is 1.0 points cheaper overall
Arkansas has the lower cost-of-living index. Arkansas is at 87.6, while Alabama is at 88.6.
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Real Dollar Value
$100 goes $1.22 further in Alabama
After BEA price-level adjustments, $100 has about $114.62 of local buying power in Alabama, versus $113.40 in Arkansas.
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Income
Alabama income is 5.4% higher
Alabama has the higher median household income at $54,943, compared with $52,123 in Arkansas.
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Jobs
Arkansas minimum wage is $3.75 higher
Arkansas has the higher statewide minimum wage at $11.00/hr, compared with $7.25/hr in Alabama.
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Housing
Alabama homes cost about 1.1x more
Arkansas has the lower median home value at $154,200, versus $174,600 in Alabama.
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Taxes
Arkansas has lower state income tax
Arkansas has the lower state income tax rate. Its top rate is 4.40%, compared with 5.00% in Alabama.
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What's Your Salary Really Worth?
Enter your gross income to see real purchasing power and the cost-of-living equivalent in both states.
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Alabama
- Gross salary
- —
- State income tax (top rate 5.0%)
- —
- After state tax
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- Real buying power (BEA RPP)
- —
Arkansas
- Gross salary
- —
- State income tax (top rate 4.4%)
- —
- After state tax
- —
- Real buying power (BEA RPP)
- —
Cost-of-Living Equivalent
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* "After state tax" uses the top marginal rate — actual effective rate is lower for most incomes. Real buying power uses BEA Regional Price Parity (87.2 for Alabama, 86.1 for Arkansas). COL equivalent uses the MERIC/C2ER composite index.
Tradeoffs
Pros and cons for each state
A fast scan of the biggest advantages and drawbacks pulled from affordability, housing, income, taxes, safety, health, education, jobs, and weather.
Alabama
At-a-glance strengths and tradeoffs
Pros: Alabama
- Alabama shows higher median income.
- Alabama has lower property tax rates on average.
- Alabama has a lower violent crime rate.
- Alabama health coverage access proxy is stronger.
- Alabama education proxy is higher.
Cons
- Alabama has a higher overall cost of living.
- Alabama has a higher housing cost index.
- Alabama has higher median home values.
- Alabama job growth trend is weaker.
- Alabama health access/outcomes proxy is lower.
- Alabama has fewer sunny days.
Arkansas
At-a-glance strengths and tradeoffs
Pros: Arkansas
- Arkansas has a lower overall cost of living.
- Arkansas has a lower housing cost index.
- Arkansas has lower median home values.
- Arkansas job growth trend is stronger.
- Arkansas health access/outcomes proxy is higher.
- Arkansas has more sunny days.
Cons
- Arkansas shows lower median income.
- Arkansas has higher property tax rates on average.
- Arkansas has a higher violent crime rate.
- Arkansas health coverage access proxy is weaker.
- Arkansas education proxy is lower.
Full Comparison
Pick a category to focus on. General shows the most important facts at a glance.
| Metric |
AL
|
AR
|
|---|---|---|
|
Capital City
|
Montgomery | Little Rock |
|
State Color
|
Solid Red | Solid Red |
|
Population
|
5,024,279
|
3,011,524
|
|
Median Income
|
$54,943
|
$52,123
|
|
Cost of Living
|
88.6
|
87.6
|
|
Median Housing Value
|
$174,600
|
$154,200
|
|
Property Tax
|
0.38%
|
0.55%
|
|
State Income Tax
|
5.00%
|
4.40%
|
|
Minimum Wage
|
$7.25/hr
|
$11.00/hr
|
|
Gas Price
|
$3.840/gal
|
$3.610/gal
|
|
Electricity Rates
|
16.06 c/kWh
|
12.35 c/kWh
|
|
Livability Score
|
47.01
|
42.07
|
|
Average Temperature
|
62.8°F
|
60.4°F
|
|
Sunny Days
|
99 days
|
123 days
|
|
Land Area
|
52,419 sq mi
|
53,179 sq mi
|
|
Population Density
|
95.8 per sq mi
|
56.6 per sq mi
|
|
Statehood
|
December 14, 1819 (#22)
|
June 15, 1836 (#25)
|
Intent-Oriented
Which state fits your priorities better?
Use these cards as decision shortcuts for common goals like saving money, buying a home, finding better weather, or optimizing for work and family life.
6
of
17
shown
Saving Money
Arkansas is cheaper overall
Overall cost-of-living index: 87.6 vs 88.6 in Alabama. On a national baseline of 100, the lower score usually means cheaper day-to-day expenses.
See full data
Gas Price
Arkansas is cheaper at the pump
Average regular gas price: $3.610/gal in Arkansas vs $3.840/gal in Alabama. Lower pump prices can cut everyday driving costs.
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Minimum Wage
Arkansas has the higher minimum wage
State minimum wage: $11.00/hr in Arkansas vs $7.25/hr in Alabama. That matters most for hourly, entry-level, and part-time workers.
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Electricity Rates
Arkansas has cheaper electricity
Average residential electricity rate: 12.35 c/kWh in Arkansas vs 16.06 c/kWh in Alabama. Lower cents-per-kWh pricing can help keep utility bills down.
See full data
Buying a Home
Arkansas is more attainable for buyers
Home-value-to-income ratio: 2.96x in Arkansas vs 3.18x in Alabama. A lower ratio means the median home is easier to afford on a median income.
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Renting
Alabama is easier for renters
Rent-to-income ratio: 20.2% in Alabama vs 20.3% in Arkansas. A lower percentage means rent takes a smaller bite out of a typical household budget.
See full dataExplore by Category
Dive Deeper
Each link opens a full one-on-one breakdown for that metric — national rankings, charts, and context.
People Also Ask
Alabama vs Arkansas - Common Questions
Q Is Alabama cheaper to live in than Arkansas?
Arkansas has the lower cost of living. On the national index (100 = average), Arkansas scores 87.6 versus 88.6 for Alabama - a gap of 1.0 points.
Q Where does $100 go further - Alabama or Arkansas?
$100 goes further in Alabama. After BEA regional price adjustments, $100 is worth about $114.62 in Alabama, compared with $113.40 in Arkansas.
Q Which state is bigger - Alabama or Arkansas?
Arkansas is larger, covering 53,179 sq mi compared with 52,419 sq mi for Alabama - roughly 1.0x the size.
Q Does Alabama or Arkansas have more people?
Alabama has the larger population at 5,024,279, compared with 3,011,524 in Arkansas.
Q Which state has higher household income - Alabama or Arkansas?
Alabama has the higher median household income at $54,943, versus $52,123 in Arkansas.
Q Which state has lower income taxes - Alabama or Arkansas?
Arkansas has the lower state income tax top rate at 4.40%, compared with 5.00% in Alabama.
Q Is housing cheaper in Alabama or Arkansas?
Homes are cheaper in Arkansas, where the median home value is $154,200, versus $174,600 in Alabama.
Q Which state is more densely populated - Alabama or Arkansas?
Alabama is more densely populated at 95.8 per sq mi people per sq mi. Arkansas is more spread out at 56.6 per sq mi people per sq mi.
Related Comparisons
Methodology
All figures are sourced from U.S. government datasets and updated annually. Page last updated: April 2026.
Core demographic data comes from the 2020 U.S. Census, with land area from U.S. Census Bureau TIGER files and statehood dates from the National Archives. Income, housing, affordability, and tax fields are maintained in our comparison dataset; purchasing-power figures use BEA Regional Price Parities. Minimum wage data comes from the U.S. Department of Labor, gas prices from AAA, and electricity rates from the U.S. Energy Information Administration. Political control and election fields use 2024 presidential results together with National Conference of State Legislatures data. Gun-law labels use the Giffords scorecard, alcohol system data comes from NABCA, and marijuana status uses NCSL's state cannabis laws tracker. See our editorial policy for how we review and update these pages.