Cost of Living in Texarkana, Texas
Texarkana is one of the most affordable places to live in Texas. The overall cost of living runs roughly 9% below the national average, with housing the biggest bargain of all — and on the Texas side, there's no state income tax. For anyone whose priority is making a paycheck go as far as possible, few Texas cities stretch it further.
The twist, of course, is the state line. Living in a two-state city means tax and cost decisions can hinge on which side of the border you're on. Here's a realistic look at what it costs to live in Texarkana.
Housing
Housing is where Texarkana's affordability really shows. Housing costs run about 22% below the national average, and the city has consistently ranked among the lowest home prices of any metro in Texas, with typical homes often in the low $200,000s — and plenty available for less. That buys a lot of house compared to Texas's big metros, where the same money might not cover a starter home.
The market includes historic neighborhoods near downtown, established mid-century areas, and newer subdivisions, along with rural property in the surrounding countryside. Renters benefit from below-average rates too. As always in Texas, the trade-off for low home prices is property taxes, which are relatively high on the Texas side because the state has no income tax.
Everyday Costs and the Two-State Question
Beyond housing, Texarkana's everyday costs are below national averages across the board: utilities run roughly 8% under, and healthcare about 15% under — a notable figure given that the city is a regional medical hub with two hospital systems. Groceries and routine services are affordable, and as the commercial center for a wide four-state area, Texarkana has the retail and services to meet daily needs without a long drive.
The state line adds a wrinkle worth understanding. Texas has no state income tax; Arkansas does. That makes the Texas side appealing for income-tax purposes, though Arkansas and Texas differ on property taxes, sales taxes, and vehicle registration too. Many residents weigh these differences when deciding which side of Texarkana to live on, and it's worth doing the math for your own situation.
The Bottom Line
Texarkana is genuinely cheap to live in by national standards, and its cost advantage is anchored by some of the lowest housing costs in Texas. Combined with no state income tax on the Texas side, that makes it an attractive landing spot for retirees, remote workers, and anyone relocating from a high-cost area.
The main budgeting caveats are the usual Texas property-tax burden and the need to understand the two-state tax picture before you buy. For most households, though, the headline is simple: your housing dollar goes remarkably far here.
FAQ: Cost of Living in Texarkana
Very. Texarkana's overall cost of living runs about 9% below the national average, with housing costs roughly 22% below national. It's consistently among the most affordable metros in Texas, and the Texas side has no state income tax.
Texarkana has some of the lowest home prices of any Texas metro, with typical homes often in the low $200,000s and many available for less. Exact prices vary by neighborhood and over time, but housing here runs well below the national average.
Yes. Texas has no state income tax while Arkansas does, so the Texas side is generally more favorable for income taxes. The two states also differ on property taxes, sales taxes, and vehicle registration, so it pays to compare both sides before buying or renting.
No — both are below the national average. Utilities run about 8% under and healthcare about 15% under national averages, the latter notable since Texarkana is a regional medical hub with two hospital systems.
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