Alabama vs Arkansas: Tax & Cost of Living Comparison
A comprehensive side-by-side comparison of taxes, cost of living, housing, income, and insurance costs between Alabama and Arkansas.
State 1
Alabama
AL
State 2
Arkansas
AR
| Category | Alabama | Arkansas |
|---|---|---|
| Income Tax Rate | 5.00% | 4.40%Better |
| Property Tax Rate | 0.37%Better | 0.57% |
| Property Tax (on Median Home) | $777/yrBetter | $1,026/yr |
| Sales Tax Rate | 4.00%Better | 6.50% |
| Cost of Living Index | 89 | 89 |
| Median Home Price | $210,000 | $180,000Better |
| Median Household Income | $56,500Better | $52,500 |
| Avg. Auto Insurance | $1,560/yrBetter | $1,790/yr |
| Avg. Home Insurance | $1,850/yrBetter | $2,200/yr |
Cost of Living Comparison
Index relative to national average (100)
Median Home Price
Alabama
$210,000
Property Tax: $777/yr
Arkansas
$180,000
Property Tax: $1,026/yr
Alabama homes are +16.7% more expensive than Arkansas homes.
Median Household Income
Alabama
$56,500
Arkansas
$52,500
Alabama households earn $4,000 more per year on average.
Insurance Costs
| Type | Alabama | Arkansas | Difference |
|---|---|---|---|
| Auto Insurance | $1,560/yr | $1,790/yr | $230/yr |
| Home Insurance | $1,850/yr | $2,200/yr | $350/yr |
| Total Insurance | $3,410/yr | $3,990/yr | $580/yr |
Overall Financial Comparison
Weighted score combining income tax, property tax, sales tax, cost of living, housing, insurance, and income. A lower score indicates better overall financial affordability.
Alabama
39.3
More Affordable
Arkansas
54.9
The Bottom Line
Alabama offers lower property tax, lower sales tax, higher median income compared to Arkansas. Meanwhile, Arkansas offers lower income tax, more affordable housing. Overall, Alabama edges ahead in our weighted financial comparison.
Alabama Advantages
- +Lower property tax
- +Lower sales tax
- +Higher median income
Arkansas Advantages
- +Lower income tax
- +More affordable housing