Arkansas is one of the most affordable states in the country to live in, making it the perfect retirement destination. In addition to a median home cost of $149,120, the state does not tax Social Security benefits. For those with other forms of retirement income, such as pensions or IRAs, Arkansas also offers a deduction of $6,000 for persons age 59 ½ or older.
Property Taxes
The State of Arkansas does not have a property tax; however, Arkansas cities and counties do collect a property tax, which is the principal source of revenue for funding local public schools. Arkansas is blessed to be in the Top 15 in the nation for the lowest real estate property taxes in America.
Combined with low taxes, low housing costs and 4 distinct seasons, Hot Springs Village is a great choice to live, work and play. Check out our Discovery Packages and see for yourself why Hot Springs Village is one of the premier retirement/relocation destinations in the South.
| Rank | State | Effective Real-Estate Tax Rate |
Annual Taxes on $217.5K Home | State Median Home Value |
Annual Taxes on Home Priced at State Median Value |
| 1 | HI | 0.28% | $606 | $615,300 | $1,715 |
| 2 | AL | 0.41% | $895 | $142,700 | $587 |
| 3 | CO | 0.51% | $1,113 | $343,300 | $1,756 |
| 4 | LA | 0.55% | $1,187 | $163,100 | $890 |
| 5 | DC | 0.56% | $1,221 | $601,500 | $3,378 |
| 6 | SC | 0.57% | $1,238 | $162,300 | $924 |
| 6 | DE | 0.57% | $1,240 | $251,100 | $1,431 |
| 8 | WV | 0.58% | $1,269 | $119,600 | $698 |
| 9 | NV | 0.60% | $1,310 | $267,900 | $1,614 |
| 10 | WY | 0.61% | $1,319 | $220,500 | $1,337 |
| 11 | AR | 0.62% | $1,358 | $127,800 | $798 |
| 12 | UT | 0.63% | $1,362 | $279,100 | $1,748 |
| 13 | AZ | 0.66% | $1,446 | $225,500 | $1,499 |
| 14 | ID | 0.69% | $1,492 | $212,300 | $1,456 |
| 15 | TN | 0.71% | $1,548 | $167,200 | $1,190 |
Source: https://wallethub.com/edu/states-with-the-highest-and-lowest-property-taxes/11585/
Personal Income Taxes
Personal income tax is levied statewide only; not on the local level. The following information is from 2022.
Income Tax Rate for Individuals with Net Income of Less Than or Equal to $84,500
| Taxable Income | Tax Rate |
| $0 – $4,999 | 0.0% |
| $5,000 – $9,999 | 2.0% |
| $10,000 – $14,299 | 3.0% |
| $14,300 – $23,599 | 3.4% |
| $23,600 – $39,699 | 5.0% |
| $39,700 – $84,500 | 5.5% |
Income Tax Rate for Individuals with a Net Income Greater Than $84,500
| $0 – $4,300 | 2.0% |
| $4,301 – $8,500 | 4.0% |
| +$8,500 | 5.5% |
Source: https://www.arkansasedc.com/why-arkansas/business-climate/tax-structure/personal-income-tax
Sources of Income Not Taxed in Arkansas:
- Social Security benefits
- Military pensions
- Inheritances and estates
- Railroad retirement benefits
Gas Prices in Arkansas
Gas prices in Arkansas are lower than the national average. Learn more information from AAA.