The short version
- Social Security taxed?
- No
- Income tax
- Brackets up to 3.9%
- Property tax on a $300,000 home
- ≈ $1,680 / yr ($140 / mo)
- Everyday cost index (U.S. = 100)
- 90
- January / July high
- 51°F / 93°F
- Sales tax (state + local avg)
- 9.48%
Retiring in Arkansas
Very low living costs, mild winters, and no tax on Social Security. Watch out: sales taxes near 9.5% and limited rural healthcare.
How Arkansas taxes your retirement income
Social Security: not taxed at all.
Pensions: $6,000 pension exclusion per person; military pensions exempt.
401(k) and IRA withdrawals: $6,000 exclusion covers some 401(k)/IRA income.
The setup: Brackets up to 3.9%.
Property tax & senior breaks
The average effective property tax rate is about 0.56% — roughly $1,680 a year ($140 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Homeowners 65+ can freeze their home's assessed value.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 10% below the U.S. average. The combined state and average local sales tax is 9.48%.
Weather
January days top out around 51°F and July days around 93°F, with roughly 217 sunny days a year. Watch out for: Tornadoes, ice storms, and humid summers.
Healthcare
UAMS anchors care in Little Rock; rural access is limited.