Living in Arkansas vs New Jersey 2026 | Cost of Living, Taxes & Real Estate Compared

Living in Arkansas vs New Jersey 2026 | The Most Dramatic Property Tax Comparison in America

New Jersey holds an unenviable distinction: it has the highest property taxes of any state in the United States, a top income tax rate of 10.75%, median home prices of $450,000+, and some of the highest costs of living in the country. Arkansas sits at the opposite end of almost every one of these scales. For New Jersey residents — military families at Joint Base McGuire-Dix-Lakehurst, Fort Hancock, or civilian workers in the NY metro corridor — considering relocation to Central Arkansas, the financial numbers are almost too good to believe. They are real.

Property Taxes: The Single Biggest Financial Case for Moving

New Jersey’s effective property tax rate of approximately 2.47% of market value is the highest in the United States — by a significant margin. Bergen County averages 2.20%. Essex County: 2.70%. Ocean County: 1.80%. Monmouth County: 1.90%. Even New Jersey’s most “affordable” counties have property tax rates 2–3x higher than Arkansas.

Tax comparison: $450,000 NJ home (1.90% rate) → $8,550/year in property taxes. $260,000 Arkansas home (0.63%) → $1,638/year. Annual property tax savings in Arkansas: $6,912/year — $576/month, every single month you own a home. Over 10 years: $69,120 in savings. Over 30 years: $207,360. No other financial move available to New Jersey homeowners produces this magnitude of ongoing savings outside of moving to a lower-tax state.

Home Prices: Arkansas Is Roughly Half

New Jersey median home price in 2026: approximately $450,000–$475,000 statewide. Bergen/Morris/Somerset counties (commuter suburbs): $600,000–$900,000. Monmouth/Ocean counties (Shore area, near Fort Dix): $380,000–$550,000. Atlantic City area: $250,000–$350,000. Burlington County (near McGuire-Dix-Lakehurst): $310,000–$420,000. Central Arkansas median: $220,000–$260,000. For Burlington County military families, Arkansas prices are roughly 60–70% of NJ prices. For Bergen County or Morris County commuter families, Arkansas prices are 30–40% of what they pay.

State Income Tax: New Jersey Is the Second Highest in the Nation

New Jersey’s income tax tops out at 10.75% for income over $1,000,000, but meaningful brackets hit at much lower incomes: 6.37% for income over $75,000 (single) and 8.97% for income over $500,000. For a dual-income military household earning $120,000–$150,000, effective New Jersey income tax rates often reach 6%–7.5%.

Arkansas tops out at 4.4% for income over $90,000. For a $120,000 household: New Jersey → approximately $7,200–$8,500/year in state income taxes. Arkansas → approximately $4,800–$5,200/year. Annual income tax savings in Arkansas: approximately $2,000–$3,300.

Military Retirement Income: Arkansas Wins

New Jersey has a partial military retirement exemption — up to $75,000 for qualifying veterans over age 62 (or disabled). Younger retirees without disability status pay New Jersey’s full income tax on military retirement pay. Arkansas fully exempts all military retirement income for all veterans regardless of age. For a 42-year-old O-5 retiree receiving $55,000/year: New Jersey (under 62, no disability) → approximately $3,000–$3,500/year in state taxes on retirement. Arkansas → $0.

Joint Base McGuire-Dix-Lakehurst

JB MDL is the tri-service installation combining Fort Dix (Army), McGuire AFB (Air Force), and Naval Air Engineering Station Lakehurst. It’s one of the largest joint bases in the US and a major airlift hub. AMC and Air Mobility personnel at McGuire regularly receive LRAFB orders for C-130 transition or related airlift assignments. Burlington County (where JB MDL is located) has an effective property tax rate of approximately 2.10% — meaning service members at JB MDL are paying some of the highest property taxes in the country on base housing or off-base rentals that are ultimately priced to reflect that tax burden.

JB MDL to Little Rock: approximately 16–17 hours (1,050 miles) — a 2-day drive. Most families fly (3–4 hours with one connection).

Cost of Living: New Jersey vs Arkansas

New Jersey (statewide average): approximately 20–30% above national average. NYC-adjacent Bergen/Essex/Passaic counties: 40–60% above national average. Shore counties: 15–25% above. Central Arkansas: 10–12% below national average. Moving from northern New Jersey to Central Arkansas is one of the most dramatic cost-of-living resets available in the continental US — comparable in magnitude to moving from California.

New Jersey’s Advantages

It would be dishonest not to acknowledge what New Jersey offers that Arkansas cannot match: proximity to New York City’s unparalleled cultural, professional, and social opportunities; Atlantic Ocean beaches; access to Philadelphia; one of the best public school systems in the nation (though funded by those high property taxes); and a dense professional network in finance, pharma, and technology. For families whose careers and social lives are deeply tied to the NY metro, no financial argument fully overcomes these anchors.

Who Should Consider Moving from New Jersey to Arkansas?

The Arkansas move works best for: military families on PCS orders who experience the financial reset firsthand; remote workers earning NJ/NY salaries while living on Arkansas costs; retirees who no longer need NYC metro job access and want to dramatically extend their retirement savings; and younger families priced out of NJ homeownership who can buy a Central Arkansas home with a small down payment or VA/$0 down loan. Ashley Watters has worked with multiple Northeast transplants who found that their NJ equity, when redeployed into an Arkansas home, eliminated their mortgage entirely.

Connect with Ashley About Moving from New Jersey to Arkansas