Arkansas is continuing to gain momentum as one of the most economically competitive states in the nation, earning a #6 ranking for overall economic outlook in the 2026 Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index. This marks the second consecutive year the Natural State has landed among the top-tier states for economic outlook—an encouraging signal for individuals and families considering a move to Arkansas.
Now in its 19th edition, the widely followed index evaluates all 50 states based on 15 policy-driven economic indicators, offering both a snapshot of current competitiveness and a forecast of future economic performance.
A Rapid Rise in National Rankings
Arkansas’ climb in the rankings has been notable. Since 2021, the state has surged from #23 to #6, reflecting a strategic focus on pro-growth policies and long-term economic planning.
Governor Sarah Huckabee Sanders credited the state’s progress to a consistent emphasis on economic growth and fiscal discipline.
“Arkansas is rising in the ranks because we’ve stayed focused on what works: making growth a priority,” said Governor Sanders. “We’ve gone from 16th to 6th in national economic outlook—the highest in our state’s history—and that progress is the result of low-tax, pro-growth policies delivering real results.”
For relocators evaluating where to move next, this kind of upward trajectory signals stability, opportunity, and a business-friendly environment—key factors in long-term decision-making.
Strong Performance Across Key Economic Indicators
In addition to its overall ranking, Arkansas stood out in several individual policy categories that directly impact affordability and job creation:
- #1 in Estate/Inheritance Tax (favorable for wealth preservation)
- #1 as a Right-to-Work State (appealing for employers and workforce flexibility)
- #2 in Property Tax Burden (lower costs for homeowners)
- #2 in Average Workers’ Compensation Costs
- #3 in Recently Legislated Tax Changes
- #8 in Top Marginal Corporate Income Tax Rate
- #9 in Debt Service as a Share of Tax Revenue
These rankings reinforce Arkansas’ position as a low-cost, pro-business state, which continues to attract both employers and remote workers seeking a more affordable lifestyle.
What This Means for People Moving to Arkansas
For those considering relocation, Arkansas’ economic outlook translates into several tangible benefits:
- Lower cost of living, driven by reduced tax burdens and housing affordability
- Expanding job opportunities, particularly in growing sectors supported by pro-business policies
- Increased economic stability, supported by responsible fiscal management
- A favorable environment for entrepreneurs and remote workers, thanks to lower operational costs
Secretary of Commerce Hugh McDonald emphasized the broader impact of these policies on the state’s future.
“Arkansas is on the rise, and this latest index clearly shows it. As we lower taxes and help businesses succeed, we’re becoming more competitive and positioning the state for an even brighter future.”
Policy-Driven Growth Fuels Momentum
The ALEC-Laffer Index focuses specifically on policy variables controlled by state lawmakers, including income tax rates, property taxes, labor policies, and government spending metrics. Arkansas’ strong showing reflects deliberate changes in these areas, including:
- Reducing state income taxes by more than 20%
- Investing in education and workforce development
- Supporting economic development initiatives statewide
These moves are designed to create a sustainable growth environment that benefits both current residents and newcomers.
Arkansas’ Growing Reputation as a Relocation Destination
As more Americans seek affordability, flexibility, and economic opportunity, Arkansas is increasingly standing out as a compelling relocation destination. The state’s consistent rise in national rankings reinforces what many new residents are already discovering: Arkansas offers a balanced combination of opportunity, affordability, and quality of life.
With leadership signaling a continued push toward the top spot in future rankings, Arkansas’ trajectory suggests that the state’s best economic days may still lie ahead—making now a strategic time to consider making the move.