Military Retirement Pay State Income Tax Exemption
100% exemption of military retired pay from Arkansas state income tax.
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Apply directly through the official Arkansas agency.
About this benefit
Eligibility
Any military retiree receiving retired pay. Arkansas residency required. Also exempts active-duty pay, Survivor Benefit Plan (SBP) payments, and military disability retirement pay.
Estimated value
Arkansas top income tax rate is 3.9% for tax year 2026 (a special-session reduction to 3.7% retroactive to 1/1/2026 has been proposed but is not yet enacted as of May 2026). A retiree receiving $30,000/year saves roughly $1,170 at the 3.9% rate.
How to apply
No separate application; claimed on Arkansas state income tax return.
Verified against official source
Last checked 2026-05-05 against www.dfa.arkansas.gov. Always confirm current rates and rules with the Arkansas state agency before applying.
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