Arkansas variant. This is a Arkansas-specific version of the Budget Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Budget Calculator.
Building a budget in Arkansas starts with the $56,335 median income ($4,695/month) and the local cost of housing - a $200,000 median home and 9.47% combined sales tax.
50/30/20 budget for Arkansas
The 50/30/20 rule splits after-tax income into needs (50%), wants (30%), and savings/debt (20%). On $4,695/month gross, that's roughly $2,347 needs, $1,408 wants, $939 savings - before adjusting for Arkansas taxes.
Factor in Arkansas's 4.4% top income tax when converting gross to take-home.
About taxes and housing in Arkansas
Arkansas has a graduated income tax that tops out at a modest rate, and the state has steadily reduced its top rate in recent years.
Arkansas has low property taxes and some of the most affordable home prices in the country.
Arkansas is home to major retail and food-processing companies, with agriculture and timber remaining important to its low-cost-of-living economy.
Worked example: $56,335 income
$4,695/month → needs $2,347, wants $1,408, savings $939. If housing in Arkansas exceeds the $2,347 needs cap, trim wants or relocate within the metro.
Quick reference
- State income tax: Top rate 4.4% on income over $24,300
- State sales tax: 6.5% (plus 2.97% avg local)
- Median home value: $200,000
- Median household income: $56,335
- Effective property tax rate: 0.61%
- Avg auto insurance: $1,657/yr
Frequently Asked Questions
What's a good monthly budget in Arkansas?
Anchor to take-home pay using 50/30/20: about $2,347 needs on the median income, adjusted for Arkansas taxes.
How much should I save in Arkansas?
The 50/30/20 rule targets 20% - roughly $939/month on the Arkansas median income.