Retire in Arkansas: 2026 Tax & Cost of Living Guide
Moderate income tax with a generous 50% long-term capital gains exclusion and low property taxes make Arkansas attractive for equity-heavy retirees.
State income tax
Progressive — top rate 4.40%
Social Security
Not taxed
Estate tax
None
Property tax
0.64%
How Arkansas Taxes Retirement Income
- Social Security
- Not taxed
- Public pensions (state/federal)
- Taxed
- Private pensions
- Taxed
- 401(k) / IRA withdrawals
- Taxed
Exemption / exclusion
$6,000 exclusion per taxpayer from pensions and IRA withdrawals
What Would You Pay in State Income Tax?
Rough estimates at the top marginal rate (actual effective rate will be lower for most retirees due to brackets, exemptions, and standard deduction):
| Annual Retirement Income | Estimated State Tax | Effective Rate |
|---|---|---|
| $50,000 | $2,200 | 4.4% |
| $100,000 | $4,400 | 4.4% |
| $200,000 | $8,800 | 4.4% |
Capital Gains in Arkansas
50% of long-term capital gains are excluded from AR income tax
We don't have detailed cost-of-living data for a city in Arkansas yet. See our city guides for 300+ other cities worldwide, or compare Arkansas against other US states below.
States With No Income Tax
Compare Against Other States
All 50 US States + DC
Ranked by tax-friendliness for retirees. Grouped by income-tax type.
Retirement Methodology Calculators
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Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.