Cost of living & taxes

Read this first: general guidance, not advice

Tax law is our most-hedged topic for a reason: rules change, individual situations vary, and a small detail can flip the outcome. Everything below is general information as of recent Arkansas law and should be confirmed against current statutes with a qualified tax professional or the Arkansas Department of Finance and Administration before you plan around it. We publish no specific dollar amounts as fixed fact, and we don't quote listing prices here. With that said, the broad picture is genuinely favorable for retirees, which is a real part of why people move here.

The cost story has two halves: taxes (how much of your retirement income and property Arkansas takes) and everyday cost of living (housing, groceries, services). Arkansas tends to score well on both relative to higher-cost states, though the exact gap depends on your income mix, the home you buy, and current prices. For the lifestyle and healthcare side of a move, pair this with our healthcare and life guide.

Amendment 79 and the 65-plus assessment freeze

One Arkansas feature is especially relevant to retirees: Amendment 79, which, among other provisions, freezes the assessed value of a homestead for owners who are 65 or older or who are disabled. In plain terms, it can cap how much the taxable assessed value of your primary home rises after you qualify — a meaningful protection in a market where values climb. The details, eligibility, and how you apply (typically through the county assessor) matter, and the provisions can be updated, so confirm current eligibility and filing requirements with the Garland County Assessor before counting on it. Amendment 79 also provides the general homestead property-tax credit noted above.

Stacked together — no state tax on Social Security, an exemption for military retirement, a capped exemption on other retirement income, low property taxes, a homestead credit, and the 65-plus assessment freeze — Arkansas's treatment of retirement income is a genuine draw. Just remember that state income tax is only one line in the budget; weigh it alongside housing, insurance, and healthcare costs rather than in isolation.

Cost of living, in practice

Beyond taxes, the everyday cost of living in the Hot Springs area has historically run below the national average and well below the high-cost states many retirees relocate from — with housing usually the biggest source of savings. That's an average picture, not a promise: a lakefront home or a home inside Hot Springs Village carries different costs than a modest place in town, and prices move year to year. The practical move is to build a written side-by-side budget comparing your current city to a specific Hot Springs scenario — home price, property tax, insurance, utilities, and healthcare — using current local numbers rather than averages. We're glad to point you toward real, current data and local professionals who can pressure-test the math.