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Arkansas Exempts Military Retired Pay from State Income Tax

Act 141 of Arkansas’ 91st General Assembly exempts Military Retired Pay from Arkansas State Income Taxes effective 1 January 2018. The full text of Act 141 can be accessed HERE

“We passed a law that exempts military retirement pay from state income tax, which is keeping retired veterans here and attracting veterans from other states. When veterans use their skills in a second career or open a business in Arkansas, the state benefits.”

--Governor Asa Hutchinson