Don’t overlook the cost of living in the Ozarks.
Sure, Tennessee keeps coming up. If you’re researching a move out of California, Illinois, New York, or other high-cost states, you’ve probably thought about Tennessee. And maybe more than once.
It’s no wonder. No state income tax. Nashville’s music scene and job opportunities. The Smoky Mountains. All within a day’s drive of many east coast cities.
On paper, it sounds like the right move.
But here’s the thing — I looked at Tennessee too before I moved to the Ozarks. And when I ran the full numbers, the Ozarks won. Not on every single category, but on the ones that matter most when you’re buying a home and building a life.
The cost of living in the Ozarks doesn’t get the same headlines as Tennessee.
But the numbers tell a different story. This article breaks down the cost of living in the Ozarks versus Tennessee so you can decide for yourself.
Tennessee Looks Great on Paper
Let’s give Tennessee its due.
The no-income-tax headline is attractive. For high earners or people with significant investment income, that’s a lot of savings.
Tennessee also has a genuine culture, beautiful mountain scenery, and a strong job market in Nashville and Knoxville.
But Tennessee’s reputation as an affordable destination was built on data that’s now several years old.
Home prices in Tennessee jumped about 80% between 2020 and 2025. That surge was driven by remote workers and out-of-state retirees flooding in from more expensive markets. The median home sale in Tennessee is now around $365,000.
Aside from rising home prices, there’s another number people miss…
Tennessee’s combined state and local sales tax rate runs around 9.6%. That ranks it among the highest in the country. So, you don’t pay income tax. But you pay it every time you shop for home essentials, buy a new vehicle, or replace a water heater.
Tennessee is still a reasonable place to live. But “affordable” deserves a closer look in 2026.
What the Cost of Living in the Ozarks Looks Like
The cost of living in the Ozarks starts with housing — because housing is where the gap is the biggest.
Missouri’s median home sale is $271,000. Arkansas comes in even lower, at $235,000.
In the rural Ozarks, you can often do better than those state medians. For example, in southern Missouri, the median sold price for a three-bedroom, two-bathroom home has held around $233,000–$245,000 over the past two years.
That’s a real difference.
Compared to Tennessee’s $365,000 median home sale, you’re talking about $94,000–$130,000 in savings. With rising costs on everything, that gap is the difference between a payment you’re comfortable with and one that keeps you up at night. Think about how much better you’d feel with $100,000+ in your pocket.
Property taxes add to cost of living in the Ozarks’ advantage.
Across the U.S., the effective property tax rate averages about 1%. In the rural Ozarks, effective rates can drop as low as 0.34%. Some homeowners out here pay a few hundred dollars a year in property taxes. And that’s on a property with acreage.
Missouri and Arkansas both have state income taxes, which I’ll address honestly in a moment. But both states have built real carve-outs for the people most likely to be relocating here.
Missouri stopped taxing Social Security income in 2024. Arkansas hasn’t taxed it in years.
Military retirement pay and VA disability benefits are tax-free in both states.
Missouri also made capital gains fully exempt from state income tax starting in 2025 — the first state with an income tax to do so.
If you’re a retiree drawing Social Security or a veteran with your pension, the tax picture in the Ozarks is genuinely competitive with Tennessee’s zero-income-tax headline.
An Example of Cost of Living in the Ozarks
Let me make this concrete.
Say you’re selling a home in the Dallas suburbs and walking away with $500,000. You’re looking for something on a a little land, three bedrooms, maybe room for a shop or a garden, nothing fancy.
In Tennessee, your $300,000 budget is a non-starter. The Nashville market is brutal, and even Knoxville and Chattanooga have tightened considerably. You’ll find something, but you may be compromising more than you expected.
But in the Ozarks, $300,000 is still a strong budget in 2026.
For that price, buyers in Springfield, Missouri can get a solid home in a good neighborhood. In the West Plains or Mountain Home area, you can get that a house that doesn’t need much work and the land you crave. Out even farther in the remote Ozarks, you’d be surprised the value you can get for $300,000.
Where the Ozarks Doesn’t Win (The Honest Part)
Any comparison that only tells one side of the story isn’t worth reading. Here’s where Tennessee has a real edge.
Income tax. Tennessee has none. Missouri’s top rate is 4.7%. Arkansas’ top rate is 3.9%. For a high-income remote worker pulling in $150,000, a Tennessee resident gets to keep several thousand dollars more each year.
Job market. If you or your spouse need in-person employment, Tennessee’s major metros offer more. Nashville in particular has a diverse economy. The Ozarks’ smaller towns are limited in this regard. Remote work changes the equation entirely. But if local employment matters, it’s worth factoring in.
The Smoky Mountains. I’ll say it plainly — if you specifically want the Great Smoky Mountains, the Ozarks are not a substitute. They’re a different kind of landscape. Not as majestic. Not as breathtaking. (But on the plus side, not as crowded, either.) Some people fall in love with the Ozarks and never look back. Others need that true mountain scale of the Smokies. Only you know which you are.
Sales tax. Missouri’s combined state and local rate is generally lower than Tennessee’s, but it varies by town and county. In Arkansas, as of January 2026, the state eliminated its grocery tax — but city and county sales taxes on groceries still apply. It’s not a slam dunk either way, so check the rate for any specific town you’re considering.
So Who Does the Ozarks Make the Most Sense For?
The cost of living in the Ozarks delivers the most value for people who are housing-driven — meaning their biggest financial lever is what they pay for a home and what they owe in property taxes every year.
So, that applies to a lot of people.
Retirees on fixed income benefit from the Ozarks’ lower housing costs, low property taxes, and favorable treatment of Social Security income.
Retired veterans get to keep 100% of their military pension, plus full exemption on VA disability benefits in both states.
Also, remote workers who can live anywhere get maximum buying power here.
Sure, you’ll pay Missouri or Arkansas state income taxes. But you’re likely bringing a good- or at least decent-paying job to an area with lower housing costs.
And then families priced out of bigger markets find that the Ozarks still has room. There’s land here. There are homes with yards. Except for some pockets of the Ozarks (northwest Arkansas and the suburbs south of Springfield), home prices haven’t gone vertical as Tennessee did between 2020 and 2025.
Tennessee is not a bad choice.
But when you compare the full picture — housing, property taxes, retirement income treatment, and everyday costs — the cost of living in the Ozarks holds up well.
And for many buyers, the Ozarks are the winner.
Download the Free Ozarks Relocation Guide
If you’re still comparing your options, I put together a free Ozarks Relocation Guide with the information most people wish they had before they made the move — towns, costs, what to look for in a property, and what to watch out for.
Frequently Asked Questions About Cost of Living in the Ozarks
What is the average home price in the Ozarks?
The median home price in the Ozarks is well below the national average — and worth noting that median is a more reliable figure than average, since a handful of very cheap or very expensive homes can skew averages significantly. Missouri’s statewide median is around $258,000. But in southern Missouri — the heart of the Ozarks — three-bedroom, two-bathroom homes have been selling closer to $233,000–$245,000 since 2024. In northern Arkansas, the median is lower still. Rural counties offer the most affordable options, often well below those figures.
Does Missouri have a state income tax?
Yes, Missouri has a state income tax with a top marginal rate of 4.7%. However, the headline rate doesn’t tell the full story — especially for retirees and veterans. Missouri does not tax Social Security income and fully exempts military retirement pay and VA benefits. And as of 2025, Missouri fully exempts capital gains from state income tax. Arkansas’ top rate is 3.9%, with similar exemptions for Social Security and military income.
How does the cost of living in the Ozarks compare to Nashville?
The cost of living in the Ozarks is significantly lower than Nashville. Home prices in the Nashville metro have risen sharply since 2020 and now far exceed what you’d pay in Springfield, Missouri or Mountain Home, Arkansas. The Ozarks also offers lower property taxes and a much quieter pace of life. Nashville wins on job market and nightlife. The Ozarks wins on affordability.
Is Arkansas or Missouri cheaper to live in?
Arkansas is generally cheaper than Missouri for home prices, with a statewide median around $235,000 compared to Missouri’s $271,000. Arkansas also has a lower top income tax rate at 3.9% vs. Missouri’s 4.7%. However, Missouri’s capital gains exemption is a meaningful advantage for investors and those selling appreciated assets. Both states are well below the national average for overall cost of living.
What are the hidden costs of living in the Ozarks?
The hidden costs of living in the Ozarks are mostly tied to rural property basics. Rural properties often run on well water and septic systems — both require inspections and occasional maintenance costs. Propane is common in areas without natural gas lines, and prices can fluctuate. And if you’re far from a larger town, healthcare and shopping trips mean driving. None of these are dealbreakers, but they’re worth budgeting for.
If You’re Excited About the Cost of Living in the Ozarks
The Ozarks don’t need much selling.
The numbers speak for themselves, and the people who move here tend to wonder why they waited so long.
If the cost of living in the Ozarks lines up with what you’re looking for, the next step is figuring out which part of the region fits your life. That’s where the relocation guide comes in — it’ll help you narrow things down before you ever get on a plane or make a call.
Like what you see in the numbers?
The free Ozarks Relocation Guide goes deeper — breaking down costs by town, what your budget actually buys here, and how to find the right fit for your situation.
Where to Go From Here
If cost of living was your starting point, here’s where to go next:
- What Is the Ozarks? One of America’s Best Kept Secrets
- Pros & Cons of Living in the Ozarks: What You’ll Love (and What to Plan For)
- Moving to the Ozarks: The Complete Guide
Then go deeper on what brought you here:
- Retirees: Retiring in the Ozarks: Why it’s the Smart Choice
- Remote workers: Best Ozarks Towns for Remote Workers: A Practical Guide
- Veterans: VA Loan in the Ozarks: How to Benefit from What You Earned
The numbers are only part of the decision. The rest is knowing which part of the Ozarks fits your life — and that’s what the relocation guide is for.
