Cost of Living in Texarkana, Texas
Texarkana by the numbers
Median home value
$171,500± $13,882
40% below Texas ($283,800)
Median rent
$1,010/mo± $40
28% below Texas ($1,403)
Median household income
$50,573/yr± $5,907
36% below Texas ($78,476)
Source: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates. ± is the 90% margin of error.
Texarkana is one of the most affordable places to live in Texas. The overall cost of living runs 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 is the biggest savings, with a median home value of about $171,500 (Census Bureau, 2020–24 American Community Survey) — roughly half the national median — 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, everyday costs are typical of East Texas, and the city is a regional medical hub anchored by CHRISTUS St. Michael. 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 below the national average, with housing the biggest savings. The Texas side has no state income tax.
Texarkana's Census median home value is about $171,500 — roughly half the national median — with many homes 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.
East Texas guides
Region-wide guides that put Texarkana in context — where to go, what things cost, and how people actually live here.
Cost of Living in East Texas
What it costs to live in East Texas, using Census figures: home values and rents in Tyler, Jacksonville and Athens compared with Texas and the big metros, plus taxes, utilities, healthcare and driving.
Read Guide →East Texas Real Estate Guide
East Texas real estate by the numbers: Census home values for Tyler, Athens and Jacksonville, drive times, property-tax basics and what buyers should check.
Read Guide →Moving to East Texas: What You Need to Know
Thinking about moving to East Texas? A fact-checked guide to healthcare, schools, getting around, weather, and daily life in Tyler, Jacksonville, and the towns around them.
Read Guide →Retiring in East Texas: Why Retirees Love It Here
Retiring in East Texas: Tyler's trauma-designated hospitals, Texas 65+ school-tax exemptions, lake towns like Gun Barrel City and Hideaway, and sourced drive times and weather.
Read Guide →Business Owner?
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