Median one-bedroom rent across the cities we track is $817 in Arkansas versus $877 in Kentucky. Overall, Arkansas runs roughly 7% cheaper on rent than Kentucky, its main day-to-day cost driver.
Median household income across tracked cities is $59,074 in Arkansas and $64,731 in Kentucky — about 9% higher in Kentucky. Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax; Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.
State Taxes
Sales Tax
6.5%
6%
+0.5 pp in Arkansas
Income Tax (top rate)
3.90%
3.50%
+0.4 pp in Arkansas
Housing (median across tracked cities)
Median 1BR Rent
$817
$877
+7% in Kentucky
Median Home Value
$221,200
$232,100
+5% in Kentucky
Income (median across tracked cities)
Median Household Income
$59,074
$64,731
+10% in Kentucky
Climate (median across tracked cities)
Avg Annual Temperature
61.7°F
58.0°F
+3.7°F in Arkansas
Arkansas vs Kentucky — FAQ
- Is it cheaper to live in Arkansas or Kentucky?
- Arkansas is cheaper on rent — its median one-bedroom of $817 runs about 7% below Kentucky's $877, based on the cities we track in each state.
- How much more do you need to earn to live in Arkansas than in Kentucky?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $33,000 a year in Arkansas versus $35,000 in Kentucky.
- Which has lower taxes, Arkansas or Kentucky?
- Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax. Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.
Housing, income, and climate are medians across the 3/3 cities we track in Arkansas/Kentucky — 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.