June 20th 2025
By Ari Parker
Thinking about retiring in Arkansas? This complete guide covers the best places to retire, cost of living, tax benefits, healthcare options, and everything you need to know for a smooth transition.
For retirees looking to settle down in the South, Arkansas can be an attractive destination. The state has a mild climate and plenty of Southern cooking to enjoy. Arkansas’s low cost of living and a variety of affordable housing options also make it an appealing retirement destination.
In this article, we’ll discuss the pros and cons of retiring in Arkansas, as well as provide you with some of the best cities to live in based on your budget.
Arkansas is a beautiful state with mild weather and all four seasons. The Ozarks run along the northern and northwestern sections of the state, with numerous lakes, woodlands, and caves to explore. Southern Arkansas tends to be a bit flatter and is filled with forests.
If you’re an outdoors person, Arkansas has a lot to offer. Hiking, biking, boating, and fishing are popular activities in Arkansas.
If indoor activities are more your thing, Arkansas has a rich art and music scene. The Arkansas Museum of Fine Arts highlights many different art forms, and many cities and towns embrace public art. Live music is a staple in the state, with Mountain View even being known as “The Folk Music Capital of the World”.
History buffs will also have plenty to explore. Arkansas played a key role in the American Civil War and the American Civil Rights Movement. So, many towns have tried to preserve this history. Eureka Springs is one town known for its Victorian architecture. It offers regular walking tours, letting guests explore its rich history.
While we gave you an overview of what retiring in Arkansas might feel like above, next, we’ll give you some more details with specific pros and cons.
If you enjoy outdoor activities, Arkansas can be a good fit. Arkansas offers a mild climate with all four seasons. The weather won’t stop you from enjoying outdoor activities like hiking and biking.
Arkansas has a low cost of living (8% lower than the national average) and offers several tax advantages for seniors. There’s no state income tax on Social Security benefits or pension income.
There’s plenty to do in Arkansas. If you like getting out and about, you’ll enjoy the museums, historical sites, and live music venues.
Summers in Arkansas can be hot, with temperatures into the 90s. If you don’t do well in the heat, you might find this uncomfortable.
Although Arkansas has low property taxes, there is a high state sales tax. This can impact your cost of essentials like groceries.
Arkansas has a healthcare shortage. This can make it difficult to access doctors for medical exams and treatments, especially for those living in more rural areas.
Retiring in Arkansas is about more than enjoying the great outdoors and live music venues. The state's low cost of living and retirement-friendly tax policies can help make your dollar stretch further. We’ll provide some more details about how taxes work in Arkansas below.
No Social Security tax: Retirees in Arkansas are exempt from taxes on their Social Security benefits. If you rely on Social Security benefits as part of your retirement income, this can be helpful.
Retirement income deductions: The first $6,000 of retirement income is exempt from income tax in Arkansas. If you’re aged 59.5 or older, you’re also exempt from taxes on the first $6,000 of your IRA distribution.
Property tax relief: Homeowners over 65 in Arkansas can have their property value frozen. This means that your property taxes won’t increase, even if the value of your property does.
No estate taxes: There are no estate taxes in Arkansas, but individuals will still be required to pay federal estate taxes.
Low property taxes: Arkansas has low property taxes compared with other areas in the country. The average effective property tax rate in Arkansas is 0.59%, and the median annual property tax payment is $877.
Arkansas is a more affordable place to live. The cost of living in Arkansas is 4% lower than the national average. Housing is 22% lower than the national average, while rent is about 18% lower than the national average. The typical house value is $210,000, while the average rent is about $1,000 for a one-bedroom apartment. Grocery prices also tend to be lower in Arkansas than the national average.
According to the U.S. News & World Report’s Affordability Rankings, Arkansas is ranked #1 for cost-of-living affordability. It also ranks #3 for housing affordability. Housing prices tend to be higher in urban areas compared to rural areas.
All three states are generally considered affordable locations to retire. However, Arkansas tends to offer the lowest cost of living. But, Tennessee can be more tax-friendly, as there is no state income tax. Many retirees also appreciate that Arkansas’s winters are milder.
It can be a bit more difficult to access healthcare services in Arkansas, especially if you live in a rural area. Healthcare costs can be lower than in Missouri or Tennessee. However, you’ll want to research access to hospitals and healthcare providers before deciding where to retire.
While Arkansas is generally affordable, there are also more luxurious retirement options. These include:
Hot Springs Village: Hot Springs Village is one of the largest gated communities in the U.S. It features championship golf courses, lake access, and hiking and biking trails. Plus, it's just a short drive to the city.
Little Rock: This upscale city offers access to the Ozarks. It also offers plenty of amenities like museums, theaters, and music venues.
Bella Vista: Bella Vista is a popular spot for retirees. It offers stunning views and plenty of activities. You can enjoy golf, tennis, pickleball, and swimming pools.
More affordable places to retire in Arkansas include:
Eureka Springs: A charming, small town that is rich with history and built around dozens of hot springs.
Mountain Home: This small town offers easy access to outdoor activities at nearby Norfolk Lake, White River, and the Ozark National Forest.
Rogers: A growing city in the Ozarks that’s close to Hobbs State Park-Conservation Area, the largest state park in Arkansas.
Arkansas is ranked as the 45th least healthy state in America’s Health Rankings Senior Report. Seniors in Arkansas report that it can be difficult to access healthcare services. This is especially true for those who have a disability. Access to high-speed internet is growing in the state. This could help seniors, especially those in rural areas, connect to telehealth services more easily.
There are about 677,000 Medicare beneficiaries in Arkansas, which makes up about 18% of the population. 55% of these Medicare beneficiaries are on Original Medicare, whereas 45% have enrolled in Medicare Advantage plans.
For individuals with low income, Legal Aid of Arkansas can help with accessing benefits or care.
If you want to learn more about Medicare in Arkansas, you can also speak with a Chapter Medicare Advisor. Schedule a free consultation or call us at (888) 604-0055 to get more details about costs and coverage.
Arkansas has budget-friendly retirement choices. You can enjoy outdoor activities like hiking and biking. You’ll also enjoy the historic sites, museums, and live music venues.
