• Effective property tax rate: 0.63%
• Median home value: $125,700
• Annual taxes on home priced at state median value: $792
• Median household income: $43,813
A combo between low effective property rates and low housing prices makes Arkansas one of the most affordable places in terms of living costs. However, Arkansas has the third-highest combined state and local sales tax rate in the country and the highest personal income tax rate among the surrounding states.