The Real Salary Guide to Living on $100,000 in Little Rock, AR

You see the job offer: $100,000. In a major coastal market, that number gets you a roommate and a long commute. In Little Rock, Arkansas, it promises a lifestyle of relative luxury. But "sticker price" salary is a lie. The only number that matters is what hits your bank account.

We crunched the numbers on a $100k salary in the capital city to determine if you are actually building wealth or just surviving with a lower cost of living.

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The Verification Test ($100,000 Analysis)

Let’s strip away the ego and look at the math. A $100,000 salary in Little Rock is not $100,000 in your pocket.

• Gross Income: $100,000
• Federal Tax: -$13,614
• FICA (Social Security/Medicare): -$7,650
• Arkansas State Tax: -$4,500
• Net Take-Home Pay: $74,236

The Analysis:
You are losing 25.7% of your gross income to taxes before you buy a single grocery item. The "Arkansas Tax Advantage" is real, but don't be fooled—Little Rock still takes a significant pound of flesh.

However, compared to a $100k earner in NYC or San Francisco (who often faces effective tax rates nearing 35-40%), keeping $74,236 is a statistical win. This leaves you with a monthly net income of $6,186.

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Smart Budget Breakdown (50/30/20 Rule)

With $6,186 landing in your account every month, how do you allocate it to maximize the value of this specific market?

Needs ($3,093 / Month)

This bucket covers the non-negotiables: rent, utilities, insurance, and groceries.

• Purchasing Power: In Little Rock, $3,093 is substantial. The median rent for a one-bedroom apartment in desirable areas like the Heights or Hillcrest hovers around $1,100 - $1,300.
• The Verdict: You can afford a premium apartment in a walkable neighborhood, pay your bills, and still have money left over for high-quality groceries. You are not rent-burdened.

Wants ($1,856 / Month)

This is your lifestyle fund. Dining out, entertainment, and tech.

• Purchasing Power: Little Rock’s dining and entertainment scene is affordable. You can eat at the best restaurants in town (The Root, Cache) multiple times a week without blowing this budget. A premium gym membership and a few weekend trips are easily covered.

Savings ($1,237 / Month)

This is the most critical section.

• Wealth Creation: $1,237 monthly is $14,844 annually.
• The Reality: In Little Rock, your salary stretches, but you must avoid "lifestyle creep." If you leverage the low cost of living to save aggressively, $14k/year invested in a low-cost index fund (assuming 7% return) becomes $115,000+ in 5 years. This is how you leverage a low-tax environment.

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Little Rock Taxes vs The Competition

Why does your money go further here? It’s not just about rent; it’s about the tax drag.

• Little Rock vs. New York City:
  • NYC: You’d pay roughly $13,000+ in local city taxes alone on a $100k salary, plus NY State tax.
  • Little Rock: $0 local tax.
• Little Rock vs. Austin:
  • Austin: No state income tax, but property taxes are among the highest in the nation (often 1.8%+).
  • Little Rock: Moderate property taxes, but the income tax (while present) is generally lower than high-tax states, and the lack of local tax keeps your monthly net high.

The Arkansas State Tax of $4,500 is a hit, but it pales in comparison to the tax hemorrhage in high-competition markets.

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Frequently Asked Questions (FAQ)

Q: What is the income tax rate in Little Rock?
A: Little Rock does not levy a local city income tax. However, Arkansas state income tax applies. For a $100,000 salary, the effective state tax rate is approximately 4.5% ($4,500), depending on specific deductions and filing status.

Q: Is $100k a good salary in Little Rock?
A: Yes. $100,000 places you significantly above the median household income for the region. It affords you a comfortable lifestyle, the ability to rent in top-tier neighborhoods without stress, and the capacity to save over $1,200 monthly.

Q: Does Little Rock have a local city tax?
A: No. Based on current data, Little Rock residents do not pay a separate local city income tax, unlike residents in cities like St. Louis or Philadelphia.

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Disclaimer: This guide is for informational purposes only. Tax estimates are based on 2026 IRS projections and standard deductions. Always consult with a certified financial planner or tax professional regarding your specific financial situation.

Sources: IRS Tax Brackets (2026 Projections), Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, Arkansas State Comptroller Revenue Data.