AR Military Retirement Tax Cut in Effect

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by Cortlynn Stark, Ozarks First


LITTLE ROCK, Ark. – The Military Retirement Income Tax Cut that Arkansas Governor Asa Hutchinson signed into law in 2017, goes into effect today (January 1st).

The tax cut eliminates state income tax on military retirement pay and was one of Hutchinson’s priorities for the 2017 legislative session. The bill had bipartisan support in both the Arkansas House of Representatives and Senate.

Arkansas is now part of the majority of southern states that exempts state income tax on military retirement pay.

Hutchinson said he hopes this initiative will help recruit more military retirees to the state.