Overall
Arkansas feels cheaper overall
Arkansas has the lower cost-of-living index, beating Alabama by 1.0 points on the overall affordability baseline.
View detailed comparison
Cost of Living Comparison
Quality of Life
Alabama vs Arkansas: Cost of Living
Arkansas is cheaper overall by 1.0 cost-of-living points, but Arkansas has lower median home values.
Alabama
AL • South
88.6
Composite cost of living index (100 = national average). Lower = more affordable.
Arkansas
AR • South
87.6
Composite cost of living index (100 = national average). Lower = more affordable.
Visual Comparison
Alabama
88.6
Arkansas
87.6
Difference: 1.0 points — Arkansas leads.
Overview
A fast-reading view of the tradeoffs behind the raw cost numbers.
Living Costs
Housing
pay about 1.1x more for a home
Arkansas has the lower median home value, while buying in Alabama costs materially more at the median.
View detailed comparisonRent Pressure
Alabama puts less pressure on a median paycheck
Median rent takes a smaller share of household income in Alabama than in Arkansas, which makes monthly budgeting easier.
View detailed comparisonTaxes
Arkansas keeps more income after state tax
Arkansas has the lower top state income tax rate, which softens the total cost picture even when prices are close.
View detailed comparisonCost Stack
Alabama
Overall Affordability
Cost of living index
88.6
Regional price parity
87.2
Regular gas price
$3.840/gal
Electricity price
16.06 c/kWh
Housing
Median gross rent
$925/mo
Median home value
$174,600
Owner costs with mortgage
-
Owner costs without mortgage
-
Taxes
State income tax
5.00%
State sales tax
4.00%
Property tax
0.38%
Income
Median household income
$54,943
Income after median rent
$3,654
Minimum wage
$7.25/hr
Laws
Gun laws
Permissive
Alcohol system
Control State
Marijuana status
Medical
Arkansas
Overall Affordability
Cost of living index
87.6
Regional price parity
86.1
Regular gas price
$3.610/gal
Electricity price
12.35 c/kWh
Housing
Median gross rent
$881/mo
Median home value
$154,200
Owner costs with mortgage
-
Owner costs without mortgage
-
Taxes
State income tax
4.40%
State sales tax
6.50%
Property tax
0.55%
Income
Median household income
$52,123
Income after median rent
$3,463
Minimum wage
$11.00/hr
Laws
Gun laws
Permissive
Alcohol system
License State
Marijuana status
Medical
What Stands Out
- Arkansas has lower median home values.
- Arkansas has the lower overall cost index.
- Alabama has the higher median household income.
- Arkansas looks more attainable on home value to income ratio.
Affordability Ratios
Related Pages
What This Means
Alabama vs Arkansas: Cost of Living in context
Arkansas has a cost of living of 87.6, compared with 88.6 in Alabama. Composite cost of living index (100 = national average). Lower = more affordable.
Alabama
88.6
Arkansas
87.6
Difference
1.0 points
People Also Ask
Alabama vs Arkansas Cost of Living — Common Questions
Q What is Alabama's cost of living?
Alabama's cost of living is 88.6.
Q What is Arkansas's cost of living?
Arkansas's cost of living is 87.6.
Q Which state has a lower cost of living — Alabama or Arkansas?
Arkansas is cheaper overall by 1.0 cost-of-living points, but Arkansas has lower median home values.
More Comparisons: Alabama vs Arkansas
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Sources: Core demographic data comes from the 2020 U.S. Census, with land area from U.S. Census Bureau TIGER files. Income, housing, affordability, and tax fields are maintained in our comparison dataset, with minimum wage data 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.