Is Central Arkansas a Good Place to Retire? 2026 Guide | Ashley Watters

Is Central Arkansas a Good Place to Retire? (2026 Guide)

The short answer: yes — especially for military retirees, veterans, and those coming from high-cost states. Central Arkansas consistently delivers low cost of living, no Social Security tax, affordable homes, warm climate, and a surprisingly rich quality of life. Here’s everything you need to know before making the move.

Arkansas Retirement Tax Benefits

Arkansas is one of the most tax-friendly states for retirees in the South:

• No Social Security tax: Arkansas does not tax Social Security retirement benefits
• Military retirement pay: Military retirement income is fully exempt from Arkansas state income tax
• Low property taxes: Arkansas has among the lowest effective property tax rates in the nation — typically 0.5%–0.7% of assessed value
• Homestead credit: Arkansas homeowners receive a $375 annual credit on property taxes
• Disabled veteran exemption: 100% service-connected disabled veterans pay zero property taxes in Arkansas
• Low state income tax: Arkansas’s top income tax rate has been reduced significantly and continues to fall

Cost of Living for Arkansas Retirees

Central Arkansas’s cost of living consistently runs 15–25% below the national average. For retirees on a fixed income, this difference is transformative:

• Median home price in Central AR: ~$225,000 (vs. $415,000+ national median)
• Average grocery costs: ~12% below national average
• Healthcare costs: Competitive, with UAMS Medical Center and Baptist Health providing world-class care
• Utilities: Electric, gas, and water costs are below national average

Military Retirement in Central Arkansas

For military retirees, Central Arkansas is a particularly compelling destination:

• Little Rock Air Force Base remains active — retirees retain commissary, BX, and base facility access
• Full military retirement pay tax exemption at the state level
• VA Medical Center in North Little Rock provides healthcare services
• Strong veterans community throughout Pulaski, Faulkner, Lonoke, and Saline counties
• 100% disabled vet property tax exemption saves thousands per year

Best Cities to Retire in Central Arkansas

Conway

Conway is Central Arkansas’s fastest-growing city with excellent healthcare (Conway Regional Medical Center), University of Central Arkansas’s cultural events, beautiful walking trails along the Arkansas River, and a vibrant downtown restaurant scene. Home prices remain very affordable — excellent value for retirees who want amenities without big-city prices.

Maumelle

Maumelle’s master-planned design makes it one of Central Arkansas’s most walker- and biker-friendly communities. Lake Maumelle provides recreation, and the city’s low crime rate and clean streets attract many retirees. Close to Little Rock amenities without the urban density.

Benton/Bryant

Saline County communities offer some of the safest, most family-friendly environments in Central Arkansas. Low crime, good schools (still relevant for grandparents), and proximity to I-30 make Benton and Bryant popular retirement destinations. Home prices in the $200,000–$350,000 range for well-maintained single-level homes.

Cabot

Cabot offers excellent small-city charm with a walkable downtown, great local restaurants, and one of the best school districts in the state (for the grandkids). The Cabot area is growing rapidly but maintains its friendly community character. Property taxes here are among the lowest in the region.

Hot Springs (50 minutes from Little Rock)

For retirees seeking more resort-style living, Hot Springs offers Oaklawn Park racing, world-class fishing on Lake Hamilton and Lake Ouachita, the Hot Springs National Park, excellent dining, and a thriving arts community — at prices far below comparable resort towns in other states.

Healthcare Access in Central Arkansas

Quality healthcare is non-negotiable in retirement. Central Arkansas offers:

• UAMS Medical Center — Arkansas’s premier academic medical center with every specialty
• Baptist Health Medical Center — Major regional hospital system
• CHI St. Vincent — Full-service hospital with specialty care
• Arkansas Children’s Hospital — For grandparent emergencies
• John L. McClellan VA Medical Center — North Little Rock, serving veterans

Outdoor Recreation for Active Retirees

Arkansas brands itself “The Natural State” for good reason. Retirees in Central Arkansas enjoy:

• 400+ miles of paved trails in the River Valley Trail System
• World-class bass and trout fishing on dozens of lakes and rivers
• Hunting (deer, duck, turkey) across millions of acres of public land
• Hiking in the Ouachita and Ozark National Forests within 1–2 hours of Little Rock
• Mild winters that allow year-round outdoor activity

Ready to Make Arkansas Your Retirement Home?

Ashley Watters is a Central Arkansas REALTOR® with eXp Realty who specializes in helping military retirees, veterans, and out-of-state relocators find their perfect retirement home in Arkansas. She’s a military spouse who understands the VA loan process inside and out — and she loves helping retirees find their forever home.

Call or text: (501) 951-9200
Email: [email protected]