Side-by-side tax comparison between Arkansas (3.9% top rate, graduated) and Georgia (5.19% top rate, flat). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Arkansas uses a graduated income tax (2-3.9%) while Georgia has a flat system (5.19% flat). On a $100K salary, Arkansas takes $2,535 in state and local taxes compared to Georgia’s $5,190 \u2014 a difference of $2,655.
Because Arkansas has graduated brackets while Georgia is flat, the gap between them changes at different income levels. Arkansas’s rates increase with income, so high earners feel the difference more acutely.
Arkansas wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Arkansas | Georgia | Difference | Winner |
|---|---|---|---|---|
| $40K | $33,306 | $32,244 | −$1,062 | Arkansas |
| $50K | $41,088 | $39,760 | −$1,328 | Arkansas |
| $60K | $48,869 | $47,276 | −$1,593 | Arkansas |
| $75K | $59,636 | $57,645 | −$1,991 | Arkansas |
| $100K | $76,590 | $73,935 | −$2,655 | Arkansas |
| $120K | $90,153 | $86,967 | −$3,186 | Arkansas |
| $150K | $109,949 | $105,966 | −$3,983 | Arkansas |
| $200K | $143,817 | $138,507 | −$5,310 | Arkansas |
| $250K | $176,927 | $170,289 | −$6,638 | Arkansas |
| $300K | $207,724 | $199,759 | −$7,965 | Arkansas |
Take-home pay only tells part of the story. Arkansas has a cost of living index of 86 while Georgia is at 93 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $89,058 in Arkansas vs $79,500 in Georgia. The take-home winner also wins on purchasing power.
For a single earner at $100K filing jointly, take-home becomes $82,175 in Arkansas and $79,520 in Georgia \u2014 a difference of $2,655. The gap remains similar regardless of filing status.
On paper, moving from Georgia to Arkansas would save $2,655/year on a $100K salary, or $13,275 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $2,655/year savings is meaningful but probably not enough to justify a move on its own. However, combined with other factors like career growth, lifestyle preferences, or family proximity, it could tip the scale.