Median one-bedroom rent across the cities we track is $904 in Arkansas versus $782 in Indiana. Overall, Indiana runs roughly 13% cheaper on rent than Arkansas, its main day-to-day cost driver.
Median household income across tracked cities is $60,583 in Arkansas and $60,293 in Indiana. Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax; Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.
State Taxes
Sales Tax
6.5%
7%
+0.5 pp in Indiana
Income Tax (top rate)
3.90%
2.95%
+0.9 pp in Arkansas
Housing (median across tracked cities)
Median 1BR Rent
$904
$782
+13% in Arkansas
Median Home Value
$221,200
$169,700
+23% in Arkansas
Income (median across tracked cities)
Median Household Income
$60,583
$60,293
+0% in Arkansas
Climate (median across tracked cities)
Avg Annual Temperature
62.7°F
53.2°F
+9.5°F in Arkansas
Arkansas vs Indiana — FAQ
- Is it cheaper to live in Arkansas or Indiana?
- Indiana is cheaper on rent — its median one-bedroom of $782 runs about 13% below Arkansas's $904, based on the cities we track in each state.
- How much more do you need to earn to live in Arkansas than in Indiana?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $36,000 a year in Arkansas versus $31,000 in Indiana.
- Which has lower taxes, Arkansas or Indiana?
- Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Arkansas/Indiana — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.