Side-by-side tax comparison between Arkansas (3.9% top rate, graduated) and Texas (no income tax). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Texas has no state income tax, while Arkansas uses a graduated system with rates of 2-3.9%. On a $100K salary, this creates a state tax difference of $2,535/year that Texas residents simply don’t pay.
Arkansas’s graduated brackets mean the gap between these two states widens at higher salaries. At $200K, the state tax difference grows to $5,070/year, while at $50K it’s only $1,268.
Texas wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Arkansas | Texas | Difference | Winner |
|---|---|---|---|---|
| $40K | $33,306 | $34,320 | +$1,014 | Texas |
| $50K | $41,088 | $42,355 | +$1,268 | Texas |
| $60K | $48,869 | $50,390 | +$1,521 | Texas |
| $75K | $59,636 | $61,538 | +$1,901 | Texas |
| $100K | $76,590 | $79,125 | +$2,535 | Texas |
| $120K | $90,153 | $93,195 | +$3,042 | Texas |
| $150K | $109,949 | $113,751 | +$3,803 | Texas |
| $200K | $143,817 | $148,887 | +$5,070 | Texas |
| $250K | $176,927 | $183,264 | +$6,338 | Texas |
| $300K | $207,724 | $215,329 | +$7,605 | Texas |
Take-home pay only tells part of the story. Arkansas has a cost of living index of 86 while Texas 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 $85,081 in Texas. However, Arkansas actually provides better purchasing power despite Texas’s take-home advantage.
For a single earner at $100K filing jointly, take-home becomes $82,175 in Arkansas and $84,710 in Texas \u2014 a difference of $2,535. The gap remains similar regardless of filing status.
On paper, moving from Arkansas to Texas would save $2,535/year on a $100K salary, or $12,675 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $2,535/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.