Does Arkansas tax pensions and retirement income?
Taxed, with a retirement exclusion
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.
In the state's own words
Copied word for word from the official document linked below each quote:
“If you are retired and receiving retirement benefits from an employersponsored pension plan, you are eligible for a $6,000 retirement income exclusion.”
“Traditional IRA distributions received after the age of 59½ or because of death or disability also qualify for the $6,000 exemption.”
Details worth knowing
- Military retirement pay has its own exemption in Arkansas, and Social Security is not taxed.
And Social Security?
No. Arkansas lists Social Security benefits among the income it does not tax. The Arkansas Social Security page quotes the rule.
Federal tax still applies
Whatever Arkansas does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) 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 12, 2026.