Quality of Life

Arkansas vs California: Cost of Living

Arkansas is cheaper overall by 50.9 cost-of-living points, but Arkansas has lower median home values.

Arkansas

AR · South

Winner

87.6

Composite cost of living index (100 = national average). Lower = more affordable.

California

CA · West

138.5

Composite cost of living index (100 = national average). Lower = more affordable.

Visual comparison

Arkansas87.6

California138.5

Difference: 50.9 points — Arkansas leads.

National Rankings

Where They Rank Nationally

See where both states fall among all 50 states for cost of living.

Arkansas #3 · 87.6

California #48 · 138.5

Best Worst

10 Best States — Cost of Living

Lower is better

West Virginia

83.6

Mississippi

85.5

Arkansas

87.6

Kentucky

88.0

Alabama

88.6

Oklahoma

88.6

Missouri

90.0

Kansas

90.2

Iowa

91.0

#10

Ohio

91.0

Selected states

#48

California

138.5

Arkansas ranks 3rd and California ranks 48th nationally for cost of living.

Overview

Cost of Living in context

A fast-reading view of the tradeoffs behind the raw cost numbers.

Overall

Arkansas feels cheaper overall

Arkansas has the lower cost-of-living index, beating California by 50.9 points on the overall affordability baseline.

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Housing

pay about 4.5x more for a home

Arkansas has the lower median home value, while buying in California costs materially more at the median.

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Rent Pressure

Arkansas puts less pressure on a median paycheck

Median rent takes a smaller share of household income in Arkansas than in California, which makes monthly budgeting easier.

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Taxes

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.

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Cost stack

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 w/ mortgage: $1,375/mo
Owner costs w/o mortgage: $450/mo

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

California

Overall affordability

Cost of living index: 138.5
Regional price parity: 113.4
Regular gas price: $5.929/gal
Electricity price: 30.29 c/kWh

Housing

Median gross rent: $1,856/mo
Median home value: $693,700
Owner costs w/ mortgage: $3,001/mo
Owner costs w/o mortgage: $882/mo

Taxes

State income tax: 13.30%
State sales tax: 7.25%
Property tax: 0.70%

Income

Median household income: $84,097
Income after median rent: $5,152
Minimum wage: $16.50/hr

Laws

Gun laws: Restrictive
Alcohol system: License State
Marijuana status: Legal

What stands out

Arkansas has lower median home values.
Arkansas has the lower overall cost index.
California has the higher median household income.
Arkansas looks more attainable on home value to income ratio.

Affordability ratios

Owner costs to income

Arkansas: 14.6%

California: 21.0%

What this means