Arkansas vs Kentucky Cost of Living
Purchasing power
Your $75,000 is worth different amounts in each state
$83,241
in Arkansas
$81,967
in Kentucky
Each cell = 1% of purchasing power. Green = value, red = gap.
Spending breakdown
Estimated annual spending on a $75,000 salary
What things actually cost
Real dollar costs side by side
Category breakdown
| Category | Arkansas | Kentucky | Difference |
|---|---|---|---|
| Housing | 78.8 | 74.8 | +5% |
| Groceries | 94.3 | 99.8 | -6% |
| Utilities | 94.3 | 88.0 | +7% |
| Transportation | 90.7 | 96.0 | -6% |
| Healthcare | 87.3 | 93.5 | -7% |
| Dining & Misc | 97.5 | 101.9 | -4% |
| Overall | 90.1 | 91.5 | -2% |
Index values relative to national average (100). Positive difference = more expensive in Arkansas.
What things actually cost
| Item | Arkansas | Kentucky | Difference |
|---|---|---|---|
| Median home price | $195,000 | $195,000 | $0 |
| Average 2BR rent | $1,103/mo | $1,047/mo | +$56 |
| Gas price | $3.05/gal | $3.16/gal | $0.11 |
| Electric bill | $85/mo | $89/mo | $4 |
| Infant childcare | $8,873/yr | $8,756/yr | +$117 |
Salary equivalent: Arkansas → Kentucky
What a Arkansas salary buys you in Kentucky, adjusted for cost of living.
| Salary in Arkansas | Equivalent in Kentucky | Difference |
|---|---|---|
| $50,000 | $50,777 | $-777 |
| $75,000 | $76,165 | $-1,165 |
| $100,000 | $101,554 | $-1,554 |
| $150,000 | $152,331 | $-2,331 |
| $200,000 | $203,108 | $-3,108 |
Positive = your money goes further in Kentucky. Based on overall COL index ratio.
Based on MERIC/C2ER 2025 composite indices. Dollar amounts from AAA, EIA, Zillow, and Child Care Aware.
Overview
Kentucky is 2% more expensive than Arkansas overall. Kentucky has an index of 91.5 vs 90.1 for Arkansas (national average = 100).
FAQ
Is it cheaper to live in Arkansas or Kentucky?
Arkansas is cheaper to live in. Kentucky is 2% more expensive overall. The biggest driver is housing — median home prices are $195,000 in Arkansas vs $195,000 in Kentucky.
Is Arkansas cheaper than Kentucky?
Yes, Arkansas is 2% cheaper than Kentucky overall based on the MERIC/C2ER cost-of-living index. Housing, groceries, and utilities all factor into the difference.
Is Kentucky more expensive than Arkansas?
Yes, Kentucky is 2% more expensive than Arkansas based on the MERIC/C2ER composite index. Housing is typically the largest factor in the difference.
What salary in Kentucky equals $100,000 in Arkansas?
To maintain the same purchasing power as a $100,000 salary in Arkansas, you would need approximately $101,554 in Kentucky. This is based on the overall cost-of-living index (90.1 vs 91.5).
How do housing costs compare between Arkansas and Kentucky?
Housing is cheaper in Arkansas. Median home prices are $195,000 in Arkansas vs $195,000 in Kentucky — a $0 difference. Average 2-bedroom rent is $1,103/mo vs $1,047/mo.
What costs more in Arkansas vs Kentucky?
Utilities is 7% higher in Arkansas (index 94.3 vs 88). Healthcare is 7% lower in Arkansas (index 87.3 vs 93.5). Groceries is 6% lower in Arkansas (index 94.3 vs 99.8).
Is gas cheaper in Arkansas or Kentucky?
Gas averages $3.05/gallon in Arkansas and $3.16/gallon in Kentucky — a $0.11 difference per gallon.
Arkansas vs Kentucky cost of living — how do they compare?
Arkansas has an overall cost-of-living index of 90.1 and Kentucky has 91.5 (national average = 100). Kentucky is 2% more expensive overall. Use the calculator above to see how this affects your specific salary.
How do taxes compare between Arkansas and Kentucky?
Cost of living is only part of the picture — state income taxes also affect your take-home pay. Arkansas uses a progressive income tax with a top rate of 3.90% on income above $24,300. Kentucky has a flat income tax rate of 3.50% for 2026, reduced from 4.00% in 2025. Use the Arkansas vs Kentucky paycheck comparison to see how a specific salary compares after federal and state taxes, FICA, and deductions.
Do I need to file state tax returns in Arkansas and Kentucky?
Arkansas requires residents to file a state income tax return annually, typically due April 15. Kentucky requires residents to file a state income tax return annually, typically due April 15. If you move between states mid-year, you typically file a part-year resident return in each state for the income earned while living there.
Where does this cost of living data come from?
Cost-of-living indices are from the MERIC/C2ER 2025 Annual Average. Dollar amounts use AAA gas prices (March 2025), EIA electricity rates (2024), Child Care Aware childcare costs (2024), Zillow home values (2024-2025), and BEA Regional Price Parities.
Related tools
- Arkansas Cost of Living — Housing, groceries, gas, and more
- Kentucky Cost of Living — Housing, groceries, gas, and more
- Arkansas vs Kentucky Paycheck Comparison — Compare take-home pay after taxes
- House Affordability in Arkansas — How much house can you afford?
- House Affordability in Kentucky — How much house can you afford?
- Arkansas Tax Brackets — See 2026 marginal rates
- Kentucky Tax Brackets — See 2026 marginal rates
- Arkansas Mortgage Calculator — Estimate monthly payments with local rates
- Kentucky Mortgage Calculator — Estimate monthly payments with local rates
- Arkansas Bonus Tax Calculator — See how bonuses are taxed differently
- Kentucky Bonus Tax Calculator — See how bonuses are taxed differently
- Gross-Up Calculator — Find the salary you need to hit a target take-home
- Salary to Hourly Converter — Convert annual salary to hourly rate
- Compare any two states
Based on MERIC/C2ER 2025 composite indices and publicly available price data. Cost of living varies significantly by metro area within a state. These are statewide averages.