If you’ve decided to retire in the Ozarks, you’ve already made one great decision. Now comes the next choice: a Missouri vs Arkansas retirement. Which state is right for you?
The state line runs right through the heart of the Ozarks.
I made this move myself. And I’ve spent a lot of time researching both sides of that state line.
There’s no “right” answer to the Missouri vs Arkansas retirement question. But there’s a right answer for you. Let’s find it.
The Big Picture — More Similar Than You’d Think
To start, it’s worth noting: the Ozarks don’t change that much at the state line.
The land looks the same. The pace of life feels the same. The sense of community, the outdoor access, the culture — it all carries across.
And both states have a lot going for retirees.
Affordable housing. A low cost of living. Low property taxes compared to the national average. No state tax on your Social Security income.
That said, let’s explore the differences.
Missouri vs Arkansas Retirement Taxes — Where It Gets Interesting
Tax laws change. What follows is a general overview for research purposes — not tax advice.
This is a popular spot to start researching Missouri vs Arkansas retirement.
Social Security
Both states don’t tax Social Security income.
Missouri eliminated state tax on Social Security starting in 2024.
Arkansas has long exempted Social Security pay from state income tax.
Other Retirement Income
This is where Missouri vs Arkansas retirement planning differs a bit.
Missouri taxes pension, IRA, and 401(k) withdrawals as regular income. The top income tax rate is 4.7%. There are deductions available for some public pensions. See the Missouri Department of Revenue for more details.
Arkansas taxes most retirement income, too.
But the top rate comes in slightly lower — at a top marginal rate of 3.9%. One Arkansas benefit: retirees age 59.5 and older can deduct up to $6,000 of retirement income annually from private pensions, IRAs, and employer plans. For more info, see the Arkansas Department of Finance and Administration.
Military Retirement & VA Disability Pay
No difference here.
Military retirees’ income isn’t taxed in either Arkansas or Missouri.
Also, neither state taxes VA disability pay.
Capital Gains — Missouri Makes a Big Move
Missouri became the first state to exempt capital gains from state income tax, effective January 1, 2025. This applies to both short- and long-term gains.
Arkansas residents can exclude 50% of net long-term capital gains — assets held for more than a year — from their state income tax liability. Short-term capital gains are treated as ordinary income and are taxed at regular Arkansas income tax rates.
If you’re holding assets that have appreciated and plan to sell, Missouri has an edge.
Estate and Inheritance Taxes
Neither state has an estate or inheritance tax.
What you build here, you pass on.
Sales Tax
Missouri’s statewide sales tax rate is 4.225%. Groceries are the exception. They’re taxed at a reduced 1.225% rate.
On top of that statewide sales tax, Missouri cities and counties charge their own sales taxes.
So, your local sales tax rate can vary widely. You can view city and county tax rates at the Missouri Department of Revenue’s website.
One final thing to add if you’re considering Branson: The city has a tourism tax. It’s 4% on lodging and 0.5% on food and drinks at restaurants. These funds help pay for the city’s tourism infrastructure.
Meanwhile, Arkansas’ statewide sales tax is 6.5% in 2026.
And like Missouri, Arkansas cities and counties charge additional sales tax. The Arkansas Department of Finance & Administration has the city and county sales tax rate breakdown.
Good recent news for Arkansas residents: Starting in 2026, the state doesn’t tax groceries.
But Arkansas has a statewide tax that Missouri does not: a tourism tax. It’s 2% and only on lodging — so something that won’t apply to you once you’re settled in. Also check for local tourism taxes. For example, Harrison, Arkansas charges a 3% local tax on lodging, prepared food, and non-alcoholic beverages.
The General Picture
Retirees who plan to sell a lot of appreciated assets should find Missouri more attractive.
But for most retirees living on Social Security and modest retirement income, there’s not much difference between Missouri and Arkansas taxes.
Compare state taxes on Missouri vs Arkansas retirement income
| Missouri | Arkansas | |
| Social Security income | No tax on retirees’ Social Security income | Also no tax on retirees’ Social Security income |
| Other retirement income | IRA and 401(k) withdrawals are taxed as regular income, with a top 4.7% marginal tax rate | IRA and 401(k) withdrawals are taxed as regular income, with a top 3.9% marginal tax rate; retirees age 59.5 and older can deduct up to $6,000 of retirement income annually from private pensions, IRAs, and employer plans |
| Military retirement & VA disability pay | No tax on military retirement (pensions) or on VA disability pay | Also no tax on military retirement or VA disability income |
| Capital gains | Short and long-term capital gains are 100% exempt from state income taxes — the first U.S. state with an income tax to repeal capital gains taxes | Short-term capital gains — gains on assets held for less than a year — are treated as ordinary income and are taxed at regular Arkansas income tax rates; for long-term capital gains — Arkansas residents can exclude 50% of net long-term capital gains from their state income tax liability |
| Estate & inheritance tax | No estate or inheritance taxes | No estate or inheritance taxes |
| Sales tax | Statewide sales tax of 4.225%, except for groceries that are taxed at 1.225%; additional, local sales taxes, including tourism taxes, may apply | Statewide sales tax of 6.5%; groceries are tax exempt; 2% statewide tourism tax on lodging; local tourism taxes may also apply |
Missouri vs Arkansas Retirement: Property Taxes — A Tie for Ozarks Counties
Both states are below the national average for property taxes.
According to the Tax Foundation, Arkansas comes in around 0.5% effective property tax rate. Missouri runs closer to 0.9%.
But that’s a statewide number, which includes higher-taxed metro areas, and Missouri has more of those than Arkansas.
It’s better to compare Missouri Ozarks counties with Arkansas Ozarks counties. And if you do this, you’ll find that property taxes across the state line are comparable. For example, in Wright County, Missouri, the property tax rate is 0.34% — about one-third of Missouri’s statewide average.
Missouri vs Arkansas Retirement: Healthcare Access — Missouri Has More Options
Springfield anchors the Missouri Ozarks with two major health systems — Mercy and CoxHealth.
Branson has Cox Medical Center Branson. West Plains has Ozarks Healthcare.
Northern Arkansas has Baxter Regional Medical Center in Mountain Home, which serves the area well. It’s a solid regional hospital. But compared to Springfield, there are less medical specialists.
Overall, rural healthcare access in Arkansas is more limited.
The bottom line on Missouri vs Arkansas retirement healthcare: if medical access is a top priority — especially specialist care — the Missouri side gives you more to work with. If you’re in good health and managing only routine care, the Arkansas side works fine for most people.
Missouri vs Arkansas Retirement: Location and Lifestyle
The two sides of the Ozarks have a different feel, and it’s worth discussing this honestly.
Retiring in the Missouri Ozarks usually means more development.
Springfield has restaurants, shopping, a university, and two hospital systems. Branson brings in tourism and entertainment year-round. Table Rock Lake is one of the most popular lakes in the region, and the infrastructure around it reflects that.
Outside the northwest Arkansas corridor, retiring in the Arkansas Ozarks usually means wilder and more rugged terrain. Less commercial.
The Buffalo National River corridor is one of the most stunning places in this part of the country. Mountain Home draws a large retiree population for a reason — it’s quiet, affordable, and sits between two lakes.
One practical note: parts of the Arkansas Ozarks are still dry at the county level — meaning local laws restrict or prohibit the sale of alcohol. Some counties ban retail alcohol sales entirely; others allow sales only in restaurants, or only beer and wine but not spirits.
Meanwhile, Missouri state law prohibits counties from banning alcohol sales.
If you’re someone who enjoys a beer, cocktail, or glass of wine, it’s worth checking the specific Arkansas county and town before you commit to a location. It’s not a dealbreaker for most people. But it can be a surprise if you don’t know to look for it.
Also, don’t be surprised by airport access in the Ozarks.
If you settle in northwest Arkansas, you’ll have plenty of flights available. But outside that area, Arkansas’ other big airport is in Little Rock. On the Missouri side, there’s the Springfield-Branson National Airport. It’s a hub with direct flights to major cities.
Bottom line: Missouri if you want more services, more amenities, and easier logistics. Arkansas if you want wilder, quieter, and more remote.
My Take — How to Choose Your Missouri vs Arkansas Retirement
Most people get stuck in the comparison and forget that the goal isn’t to pick the better state — it’s to pick the right town.
Here’s how I’d frame it.
If healthcare access is a top concern, staying within range of Springfield — which means the Missouri side or close to it — gives you the most options.
If you want to be further out, and that much closer to the lakes and rivers, then Arkansas may be the winner.
And if you’re budget-focused and want low property taxes, then it’s a toss up.
The good news: You can live on the Arkansas side and be in Springfield in 90 minutes. You can live in West Plains and be in Mountain Home in about an hour.
The harder question isn’t which state. Again, it’s which town.
And that’s what an upcoming article in this series covers.
Frequently Asked Questions About Missouri vs Arkansas Retirement
Is Missouri or Arkansas better for retirement?
It depends on your situation. For most retirees drawing Social Security, both states are competitive. The deciding factors are usually healthcare needs, lifestyle preference, and which specific town fits your life.
Does Arkansas tax retirement income?
Arkansas taxes most retirement income. But the rates are relatively low — topping out at 3.9%. Social Security and military retirement pay is fully exempt. Retirees age 59.5 and older can deduct up to $6,000 of retirement income from pensions, IRAs, and employer plans annually. Current details are available through the Arkansas Department of Finance and Administration.
Does Missouri tax Social Security?
No. Missouri eliminated its tax on Social Security retirement benefits in 2024. Other retirement income — pensions, IRA, and 401(k) withdrawals — is still taxed at rates up to 4.7%.
Which state has lower property taxes — Missouri or Arkansas?
Overall, Arkansas. According to the Tax Foundation, the average effective property tax rate in Arkansas is around 0.5%, compared to about 0.9% in Missouri. But that’s a statewide average. Property tax rates are about the same in Arkansas and Missouri Ozarks counties.
Is the Arkansas Ozarks or Missouri Ozarks better for retirees?
Both have real appeal. Retiring in the Missouri Ozarks means more healthcare infrastructure, larger towns, and easier airport access. Retiring in the Arkansas Ozarks usually means a more rugged landscape. The right answer largely depends on your healthcare needs and the retirement lifestyle you’re picturing.
Where to Go From Here
If this comparison brought you here, here’s what to read 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 matters most for your retirement:
- Retiring in the Ozarks: Why it’s the Smart Choice
- The Truth About Healthcare in the Ozarks for Retirees
- Best Towns in the Ozarks for Retirees (coming soon)
Knowing which town fits your life is what the relocation guide is for.
