Side-by-side tax comparison between Arkansas (4.4% top rate) and Kentucky (4% top rate).
| Salary | Arkansas | Kentucky | Difference | Winner |
|---|---|---|---|---|
| $50K | $40,648 | $40,048 | −$600 | Arkansas |
| $75K | $58,828 | $57,928 | −$900 | Arkansas |
| $100K | $75,590 | $74,390 | −$1,200 | Arkansas |
| $150K | $108,496 | $106,696 | −$1,800 | Arkansas |
| $200K | $142,503 | $140,103 | −$2,400 | Arkansas |
Arkansas offers higher take-home pay at every salary level. Arkansas's 4.4% top rate is more favorable than Kentucky's 4%. At $100K, the difference is $1,200/year — that’s $100/month.
However, cost of living matters. Arkansas has a cost index of 86 while Kentucky is at 90. With similar costs of living, the tax difference is the main factor.