Arkansas state exempt most of the retirement benefits like Social Security, VA benefits, Workers' Compensation, Tier 1 and Tier 2 Railroad Retirement benefits, and unemployment compensation. State also gives $6000 exemption from pensions from military, civil service, state/local government pensions, and as well as private pensions. Retirement Taxes
Arkansas state exempt most of the retirement benefits like Social Security, VA benefits, Workers' Compensation, Tier 1 and Tier 2 Railroad Retirement benefits, and unemployment compensation. State also gives $6000 exemption from pensions from military, civil service, state/local government pensions, and as well as private pensions.
State Tax Exemptions
Private Pension: The private pension upto $6000 is tax exempt
$6,000
State and Local Pension: The pension from state and local government agencies are exempt upto $6000.
$6,000
Federal Pension: The pension from federal government agencies are exempt upto $6000.
$6,000
Military Pension: $6,000
The pension from military is exempt upto $6000, but benefits are tax exempt.
Social Security: Yes
Pension Age Restriction: No
Pension Income Restriction: No
Disability Income: VA disability benefits are not taxable.