Side-by-side comparison of income tax, property tax, sales tax, capital gains, and retirement treatment between Kentucky and Arkansas for tax year 2026. Use the calculator below to estimate how much you would save (or pay) after relocating.
| Tax | Kentucky | Arkansas |
|---|---|---|
| State income tax (effective) | 4.00% | 4.40% |
| Long-term capital gains | 4.00% | 4.40% |
| Property tax (effective) | 0.83% | 0.64% |
| Combined sales tax | 6.00% | 9.40% |
| Retirement income | partial-exempt | partial-exempt |
| Income system | flat | progressive |
Kentucky total tax
$19,326
Arkansas total tax
$19,722
Kentucky state tax
$3,956
Arkansas state tax
$4,352
Difference
+$396
Arkansas costs more
As % of income
0.33%
Federal tax is identical in both columns and excluded from the difference. Numbers use 2026 IRS brackets, state effective rates, and the 3.8% NIIT where applicable.
Moving from Kentucky to Arkansas would cost an extra $396 per year on this profile.
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