Does Arkansas tax military retirement pay?
Not taxed
No. Arkansas stopped taxing military pensions starting with tax year 2018.
In the state's own words
Copied word for word from the official document linked below each quote:
“Military Pension is no longer taxable beginning with tax year 2018, Line 17A & 17B, Form AR1000F/AR1000NR.”
“You take the Military Pension exemption and also have an employer sponsored pension.”
Details worth knowing
- That second line is one of the cases Arkansas lists in which you cannot also take its $6,000 retirement income exemption.
Other retirement income in Arkansas
Partly. Arkansas lets retirees exclude the first $6,000 of pension income from an employer-sponsored plan, or of traditional IRA withdrawals after 59½. Each spouse with qualifying income gets a separate $6,000. The Arkansas pension page has the details, and the Arkansas Social Security page covers Social Security. No. Arkansas lists Social Security benefits among the income it does not tax.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the Arkansas Department of Finance and Administration before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Subject 206: Pensions and AnnuitiesArkansas Department of Finance and Administration. Read on November 13, 2026.