Cost of Living in Arkansas for Veterans & Retirees

Housing is the biggest lever

Central Arkansas housing costs run well below the national median, which is the single biggest factor in how far a fixed retirement income stretches here compared to higher-cost states. That said, "Arkansas" isn't one price point — Jacksonville and outlying areas are noticeably cheaper than newer construction in Cabot or West Little Rock. See our area comparison for the range.

State tax treatment for military income

Arkansas does not tax military retirement pay or survivor benefit plan (SBP) income. VA disability compensation is not taxed at the federal or state level regardless of which state you live in. Between those two facts and the 100% disabled veteran property tax exemption for those who qualify, a retiree's effective tax burden in Arkansas can be meaningfully lower than in a state that taxes retirement income.

Everyday costs

Utilities, groceries, and healthcare costs in Central Arkansas generally track close to or slightly below national averages, though this varies by category and has moved with broader inflation trends in recent years — treat any specific index number you see as a snapshot, not a guarantee, and budget with some cushion.

Vehicle and sales tax

Arkansas does charge state and local sales tax, and vehicle purchases are taxed at the point of sale like most states. This is worth factoring in if you're planning a vehicle purchase around your move.

Putting it together

The practical way to budget a move here: take your expected fixed income (retirement pay, disability compensation, any spouse income), subtract Arkansas's more favorable tax treatment of military income, and run that against real listings in the specific towns you're considering rather than a statewide average — the difference between Jacksonville and West Little Rock housing costs is larger than most statewide cost-of-living indexes will show you.