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Frequently Asked Questions About Retiring in Arkansas
What is the best age to retire in Arkansas?
The best age to retire in Arkansas depends on your financial situation, but many experts recommend waiting until at least age 67 (full retirement age for Social Security). In Arkansas, you should also consider when you qualify for state-specific benefits like property tax exemptions or senior discounts. Use our calculator to see how different retirement ages affect your nest egg and monthly income.
How much money do I need to retire in Arkansas?
With a cost of living index of 86.5 and median home prices around $170,000, most retirees in Arkansas need between $500,000 and $1.5 million in retirement savings. The exact amount depends on your lifestyle, healthcare needs, and desired retirement income. Our retirement calculator can give you a personalized target based on your specific situation.
Does Arkansas tax retirement income?
Tax-friendly for retirees. Social Security is not taxed. Up to $6,000 in military retirement income is exempt. The state income tax rate is 2% to 4.9%, and Social Security benefits are not taxed. Property taxes average 0.63% of home value, and sales tax is 6.5% state (up to 11.63% with local). Consider these taxes when planning your retirement budget.
What is the cost of living in Arkansas for retirees?
Arkansas has a cost of living index of 86.5 (U.S. average = 100), making it more affordable than the national average. Healthcare costs index at 88.7, below the national average. Housing costs vary significantly by region, with median home prices around $170,000.
How does Arkansas compare to other states for retirement?
Arkansas ranks favorably among retirement destinations. Key factors include state income tax of 2% to 4.9%, property taxes at 0.63%, and no taxation of Social Security benefits. The overall cost of living is 86.5 compared to the U.S. average of 100.
What are the property tax rates for retirees in Arkansas?
Property taxes in Arkansas average 0.63% of assessed home value annually. On a $170,000 home, you would pay approximately $1,071 per year. Many counties offer property tax exemptions or freezes for seniors age 65+. Check with your local tax assessor for specific programs available in your area.