How Arkansas taxes retirement income
Arkansas does not tax Social Security benefits. Pensions and 401(k)/IRA withdrawals are partly taxed (there is an exclusion, then the rest is taxed). Social Security fully exempt. Up to $6,000 annual exemption per person ($12,000 married filing jointly) for private and government employer pensions, IRAs, and 401(k) distributions for taxpayers age 59½+; amounts above the exemption are taxed at regular graduated rates. Military, police, and firefighter pensions are fully exempt.
Retirement income tax in Arkansas, at a glance
| Income type | Taxed by Arkansas? |
|---|---|
| Social Security | No |
| Pensions | Partially (exclusion applies) |
| 401(k) / IRA withdrawals | No |
| Estate / inheritance tax | None |
| Avg. property tax rate | 0.59% of home value |
Does Arkansas tax Social Security benefits?
No. Arkansas does not tax Social Security benefits.
Does Arkansas tax pensions and 401(k) or IRA withdrawals?
Partly. Social Security fully exempt. Up to $6,000 annual exemption per person ($12,000 married filing jointly) for private and government employer pensions, IRAs, and 401(k) distributions for taxpayers age 59½+; amounts above the exemption are taxed at regular graduated rates. Military, police, and firefighter pensions are fully exempt.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- Arkansas taxation of retirement income (Social Security, pensions, 401(k)/IRA): Arkansas Department of Revenue / Taxation.