Median one-bedroom rent across the cities we track is $904 in Arkansas versus $1,126 in Minnesota. Overall, Arkansas runs roughly 20% cheaper on rent than Minnesota, its main day-to-day cost driver.
Median household income across tracked cities is $60,583 in Arkansas and $80,269 in Minnesota — about 25% higher in Minnesota. Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax; Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.
State Taxes
Sales Tax
6.5%
6.875%
+0.4 pp in Minnesota
Income Tax (top rate)
3.90%
9.85%
+5.9 pp in Minnesota
Housing (median across tracked cities)
Median 1BR Rent
$904
$1,126
+25% in Minnesota
Median Home Value
$221,200
$287,500
+30% in Minnesota
Income (median across tracked cities)
Median Household Income
$60,583
$80,269
+32% in Minnesota
Climate (median across tracked cities)
Avg Annual Temperature
62.7°F
47.1°F
+15.6°F in Arkansas
Arkansas vs Minnesota — FAQ
- Is it cheaper to live in Arkansas or Minnesota?
- Arkansas is cheaper on rent — its median one-bedroom of $904 runs about 20% below Minnesota's $1,126, based on the cities we track in each state.
- How much more do you need to earn to live in Arkansas than in Minnesota?
- 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 $45,000 in Minnesota.
- Which has lower taxes, Arkansas or Minnesota?
- Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax. Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Arkansas/Minnesota — 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.