State comparison
Tennessee vs Arkansas: which state is better to live in?
Tennessee costs a median household about $2,300 a year less in state and local taxes than Arkansas, mostly because it has no income tax, though everyday prices run higher there (cost of living index 92 against 85).
Tennessee
Low tax burden · COL index 92
Wins 7 categories
Arkansas
Moderate tax burden · COL index 85
Wins 7 categories
Taxes: Tennessee vs Arkansas
Tennessee has no state income tax. Arkansas has a graduated income tax topping out at 3.9%, which works out to 3.6% on a median income of $74,580, or $2,680 a year. Tennessee wins on income tax at 2026 rates.
Property tax is 0.45% of home value a year in Tennessee and 0.60% in Arkansas (Tax Foundation, 2023); on each state's median home that is $1,575 against $1,170, so Tennessee has the lower rate.
Combined state and local sales tax averages 9.55% in Tennessee and 9.46% in Arkansas; Arkansas is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $3,712 a year in Tennessee, $5,966 in Arkansas. Tennessee is cheaper on total state and local tax.
Housing and cost of living
Tennessee's cost of living index is 92 and Arkansas's is 85, where 100 is the national average; Arkansas is about 8% cheaper day to day.
The median home costs $350K in Tennessee and $195K in Arkansas (Zillow, 2024), a $155K gap in Arkansas's favor. A two-bedroom rents for about $1,400 a month in Tennessee and $970 in Arkansas.
Home insurance averages $2,000 a year in Tennessee and $2,600 in Arkansas, so Tennessee is cheaper to insure.
Safety
Violent crime runs 668 incidents per 100,000 residents in Tennessee and 619 in Arkansas (FBI Crime Data Explorer, 2023); Arkansas is the safer state by that measure, with a rate 8% lower. Property crime is 2,752 per 100,000 in Tennessee against 2,469 in Arkansas, again favoring Arkansas.
Health
Life expectancy is 74.2 years in Tennessee and 73.8 in Arkansas (County Health Rankings, 2024), a 0.4-year edge for Tennessee. The Commonwealth Fund's 2023 scorecard ranks Tennessee's health system 39th of 50 and Arkansas's 44th, so Tennessee scores better on care.
10.4% of Tennessee residents have no health insurance against 9.4% in Arkansas, which favors Arkansas. Arkansas expanded Medicaid and Tennessee did not.
Schools
Education Week's 2023 Quality Counts report ranks Tennessee's K-12 schools 41st in the country and Arkansas's 42nd, 1 places apart in Tennessee's favor. Both states run school-choice voucher programs.
Laws and politics
In the 2024 presidential election Tennessee went to Trump by 24 points and Arkansas went to Trump by 28 points.
Tennessee has permitless carry and a Giffords gun-law grade of F; Arkansas has permitless carry and a grade of F.
Abortion is banned with narrow exceptions in both states, and marijuana is illegal in Tennessee and medical only in Arkansas as of 2026. The minimum wage is $7.25 an hour in Tennessee and $11.00 in Arkansas.
Climate and risk
Natural disaster risk is moderate in Tennessee (tornado, flood, ice-storm) and high in Arkansas (tornado, flood), so Tennessee is the lower-risk state. Annual average air quality index is 36 in Tennessee and 35 in Arkansas (under 50 is good), favoring Arkansas.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
7
Tennessee
7
Arkansas
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Score For My Profile →Questions people ask
Is Tennessee or Arkansas better to live in?
It depends on what you weigh most. Tennessee on taxes ($3,712 a year for a median household against $5,966); Arkansas on everyday costs (index 85 against 92); Arkansas on safety (619 violent crimes per 100,000 against 668); Tennessee on schools (ranked 41st against 42nd).
Which is cheaper, Tennessee or Arkansas?
Arkansas is cheaper day to day: cost of living index 85 against 92. The median home is $350K in Tennessee and $195K in Arkansas (2024). On state and local taxes Tennessee saves a median household about $2,300 a year.
Does Tennessee or Arkansas have lower taxes?
Tennessee. A household earning $74,580 pays about $3,712 a year in Tennessee ($0 income tax, $1,575 property tax on the median home and $2,137 in sales tax) and $5,966 in Arkansas ($2,680 income tax, $1,170 property tax on the median home and $2,117 in sales tax), at 2026 rates.
Which is safer, Tennessee or Arkansas?
Arkansas, on the FBI's 2023 figures. Violent crime is 668 per 100,000 residents in Tennessee and 619 in Arkansas; property crime is 2,752 against 2,469.
Which has better schools, Tennessee or Arkansas?
Tennessee. Education Week's 2023 Quality Counts report ranks Tennessee 41st of 50 for K-12 and Arkansas 42nd.
Is Tennessee or Arkansas better for retirees?
Tennessee is friendlier to retirees on paper. Tennessee does not tax Social Security, exempts pensions and has no estate or inheritance tax; Arkansas does not tax Social Security, partly exempts pensions and has no estate or inheritance tax. Property tax on a median home is $1,575 a year in Tennessee and $1,170 in Arkansas.