Little Rock vs Waco for Retirees (2026)
Scroll down for retirement income tax breakdown, healthcare estimates, and FAQ.
Full retirement cost breakdown
| Metric | Little Rock Arkansas | Waco Texas |
|---|---|---|
| 1BR rent / month | $1,100 | $1,000Better |
| Median home price | $215K | $210KBetter |
| State income tax | 4.4% | NoneBetter |
| Sales tax (combined) | 9.3% | 8.3%Better |
| Monthly utilities | $168Better | $172 |
| Groceries index (US = 100) | 93 | 92Better |
| Est. healthcare / month | $410Better | $415 |
| Walk score (0–100) | 26 / 100Better | 22 / 100 |
| Overall COL index (100 = US avg) | 82Better | 83 |
Frequently asked questions
Which city is better for retirement — Little Rock or Waco?
Little Rock and Waco are closely matched for retirees. Housing costs, tax burden, and overall affordability are similar. Your specific priorities — climate, walkability, family proximity — should guide the decision.
Is retirement income taxed in Little Rock or Waco?
Texas has no state income tax, meaning Social Security, pension, and retirement account withdrawals are not subject to state tax. Arkansas has a 4.4% state income tax rate. For retirees, this difference can save thousands annually.
What is the estimated monthly healthcare cost in Little Rock vs Waco?
Based on national average retiree healthcare spending (~$500/month) scaled by each city's cost-of-living index, estimated monthly healthcare costs are approximately $410 in Little Rock and $415 in Waco. That's a difference of ~$5/month, or ~$60/year. Actual costs vary based on your Medicare plan, supplements, and health needs.
Can I afford to retire in Little Rock on a $50,000 annual income?
On a $50,000/year ($4,167/month) retirement income in Little Rock, rent alone would consume approximately 26% of your budget (1BR rent ~$1,100/mo) and healthcare another ~10%. That leaves roughly 64% (~$2,667/mo) for groceries, transportation, and other expenses. This is generally considered manageable.
Which city is more walkable for retirees?
Little Rock has a higher walk score (26 vs 22 out of 100). Walkability is increasingly important for retirees who want to reduce car dependence — a score above 70 means most daily errands can be done on foot. Little Rock offers more independence without a car, which also reduces transportation costs.
$50K/year in Little Rock has the same purchasing power as $51K/year in Waco
Healthcare estimates based on national avg retiree spending (~$500/mo) scaled by COL index · State income tax rates from Tax Foundation · Data: Zillow, BLS, Numbeo · Q1 2026