The $100,000 Salary Analysis for North Little Rock

This guide cuts through the noise. $100,000 is a benchmark salary, but in North Little Rock, AR, it is not a fortune. It is a comfortable living wage that requires budgeting. We analyze the reality of your paycheck and your actual purchasing power.

1. The Verification Test

Nominal salary is irrelevant. Net pay is what you have to spend. Here is the math on a $100,000 annual salary for a single filer taking the standard deduction.

• Gross Income: $100,000
• Federal Tax: ~ $14,000 (Progressive brackets)
• FICA (Social Security/Medicare): $7,650
• Arkansas State Tax: ~ $5,400 (Graduated brackets; top rate hits 3.9% over $84k)
• Total Deductions: ~ $27,050
• Estimated Net Pay: $72,950 (Yearly) / $6,079 (Monthly)

Real Hourly Wage: If you work 2,000 hours a year, your actual take-home pay is roughly $36.48 per hour.

2. Smart Budget (50/30/20 Rule)

Using your monthly net pay of $6,079, we apply the standard budget split.

Needs (50% = $3,039)

• Rent (1BR Avg): $950
• Utilities (Electric/Water/Internet): $250
• Car Payment/Gas (Essential in NLR): $600
• Groceries: $450
• Remaining for Needs: $789 (Covers insurance, phone, maintenance)

Wants (30% = $1,823)

• This bucket covers dining out, entertainment, subscriptions, and travel.
• Note: This amount is healthy for NLR but vanishes quickly if you carry high-interest debt.

Savings (20% = $1,215)

• This is your safety net and investment capital.
• At this rate, you are not "retiring early," but you are building wealth.

3. North Little Rock Tax Context

Arkansas is not a tax haven, but it is manageable compared to the highest-tax states.

• Vs. Texas/Florida: You pay $5,400 in state income tax here. In those states, you keep that $5,400.
• Vs. California/NY: You are saving roughly $6,000 - $10,000 annually in state income tax compared to those states.
• The Reality: Arkansas relies on sales tax (NLR sales tax is roughly 9.5% total). You pay less upfront on income, but more every time you spend money locally.

4. FAQ

"Is $100k good here?"
It is "upper middle class," but it does not go as far as it did three years ago. After rent and taxes, you have roughly $3,100 left for everything else (car, food, savings). You will live comfortably, but you are not wealthy.

"Local income tax?"
North Little Rock has no local income tax. You only pay Federal and State taxes. However, property taxes, while lower than the national average, are not zero.

"Purchasing Power vs. Nominal"
In North Little Rock, your $100,000 nominal salary has the purchasing power of roughly $75,000 in Chicago or $60,000 in Dallas due to lower housing costs, but is effectively penalized by the state income tax compared to Texas/Florida.