Overall
Arkansas feels cheaper overall
Arkansas has the lower cost-of-living index, beating Texas by 6.7 points on the overall affordability baseline.
See full data →
Quality of Life
Arkansas vs Texas: Cost of Living
Arkansas is cheaper overall by 6.7 cost-of-living points, but Texas has no state income tax, but Arkansas has lower median home values.
National Rankings
Where They Rank Nationally
See where both states fall among all 50 states for cost of living.
Arkansas
#3 · 87.6
Texas
#18 · 94.3
Best
Worst
10 Best States — Cost of Living
Lower is better
#1
West Virginia
83.6
West Virginia
#2
Mississippi
85.5
Mississippi
#3
Arkansas
87.6
Arkansas
#4
Kentucky
88.0
Kentucky
#5
Alabama
88.6
Alabama
#6
Oklahoma
88.6
Oklahoma
#7
Missouri
90.0
Missouri
#8
Kansas
90.2
Kansas
#9
Iowa
91.0
Iowa
#10
Ohio
91.0
Ohio
Selected states
#18
Texas
94.3
Texas
Arkansas ranks 3rd and Texas ranks 18th nationally for cost of living.
Overview
Cost of Living in context
A fast-reading view of the tradeoffs behind the raw cost numbers.
Housing
pay about 1.9x more for a home
Arkansas has the lower median home value, while buying in Texas costs materially more at the median.
See full data →Rent Pressure
Arkansas puts less pressure on a median paycheck
Median rent takes a smaller share of household income in Arkansas than in Texas, which makes monthly budgeting easier.
See full data →Taxes
Texas has no state income tax
Texas gives residents a cleaner paycheck-level tax advantage, while Arkansas still taxes income at the state level.
See full data →Cost stack
ArkansasOverall 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
TexasOverall affordability
- Cost of living index
- 94.3
- Regional price parity
- 97.2
- Regular gas price
- $3.824/gal
- Electricity price
- 15.69 c/kWh
Housing
- Median gross rent
- $1,232/mo
- Median home value
- $294,400
- Owner costs w/ mortgage
- $2,211/mo
- Owner costs w/o mortgage
- $703/mo
Taxes
- State income tax
- None (0%)
- State sales tax
- 6.25%
- Property tax
- 1.49%
Income
- Median household income
- $66,963
- Income after median rent
- $4,348
- Minimum wage
- $7.25/hr
Laws
- Gun laws
- Permissive
- Alcohol system
- License State
- Marijuana status
- Medical
What stands out
- Arkansas has lower median home values.
- Texas has no state income tax.
- Arkansas has the lower overall cost index.
- Texas has the higher median household income.
Affordability ratios
Home value to income
Arkansas: 2.96x
Texas: 4.40x
Rent to income
Arkansas: 20.3%
Texas: 22.1%
Owner costs to income
Arkansas: 14.6%
Texas: 18.0%
Related pages
What this means
Arkansas vs Texas: Cost of Living in context
Arkansas's cost of living is 87.6, compared with 94.3 in Texas. Composite cost of living index (100 = national average). Lower = more affordable.
Arkansas
87.6
Texas
94.3
Difference
6.7 points
People also ask
Arkansas vs Texas Cost of Living — common questions
QWhat is Arkansas's cost of living?
Arkansas's cost of living is 87.6.
QWhat is Texas's cost of living?
Texas's cost of living is 94.3.
QWhich state has a lower cost of living — Arkansas or Texas?
Arkansas is cheaper overall by 6.7 cost-of-living points, but Texas has no state income tax, but Arkansas has lower median home values.
More comparisons: Arkansas vs Texas
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Data source and freshness
Data period
2026 incorporated quarterly release
Dataset reviewed
July 23, 2026
Method note
Composite index where 100 equals the national average.