Cost of Living5 min read · March 2026
NWA Cost of Living vs. Austin, Denver, and Nashville
Your money goes further in Northwest Arkansas. Here's exactly how much further — category by category.
~$2,200/mo
vs Austin
avg monthly savings
~$2,000/mo
vs Denver
avg monthly savings
~$1,600/mo
vs Nashville
avg monthly savings
25–30 min
Commute Saved
each way, daily
| Category | 🏡 NWA | Austin | Denver | Nashville |
|---|---|---|---|---|
| Median Home Price | $370K ✓ | $580K | $620K | $490K |
| Monthly Rent (2BR) | $1,300 ✓ | $2,400 | $2,300 | $2,000 |
| Property Tax Rate | ~0.6% ✓ | ~2.1% | ~0.6% | ~0.7% |
| State Income Tax | 2–4.7% | 0% | 4.4% | 0% |
| Monthly Groceries | $350 ✓ | $580 | $560 | $520 |
| Monthly Utilities | $155 ✓ | $200 | $185 | $190 |
| Monthly Dining Out | $300 ✓ | $550 | $520 | $480 |
| Average Commute | 15 min ✓ | 45 min | 35 min | 30 min |
What Is Your Salary Actually Worth?
If you move to NWA and keep your current salary, your effective purchasing power increases dramatically. Here's what different salaries are worth in NWA compared to other cities:
$80K in Austin
≈ $115K in NWA
After housing, taxes, and cost differences
$100K in Denver
≈ $130K in NWA
Including property tax advantage
$90K in Nashville
≈ $110K in NWA
Tennessee has no income tax, but housing costs offset it
The One Caveat: State Income Tax
Arkansas has a graduated income tax from 2% to 4.7%. Austin and Nashville have no state income tax. This is real and it matters — but it's easily offset by the property tax difference.
Example: $100K salary, $425K home
Austin
State income tax: $0
Property tax: ~$12,180/yr
Total: $12,180/yr
Bentonville
State income tax: ~$4,100/yr
Property tax: ~$2,550/yr
Total: $6,650/yr → Save ~$5,500/yr
Ready to Run Your Own Numbers?
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