VERIFY: Will Arkansas stop taxing military retiree income?

Active duty military pay is already exempt from state taxes. Will this also be extended to military retirees?

LITTLE ROCK, Ark. (KTHV) - Dalmus Brooks emailed us asking this:

"My wife and I read in one of the local newspapers that Arkansas was going to discontinue taxing military retiree income. Can you confirm this for me?"

Governor Asa Hutchinson's office helped us find the answer, which is YES.

In February, the governor signed into law a bill which eliminates state income tax on military retirement pay. This is all part of the governor's tax cut package during the 2017 legislative session.

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This was originally house bill 1162 and it passed through the General Assembly with widespread support.

The law goes into effect in January of 2018.

According to the governor's website, "Arkansas currently exempts active duty military pay from state income taxes and beginning in January will also exempt military retirement pay."

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