Updated September 4, 2026. Quick answer: Partially. Arkansas exempts the first $6,000 of combined pension and retirement-account income per taxpayer, regardless of whether it came from a public or private employer. Military retirement pay is fully exempt, separate from that $6,000 cap.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how Arkansas taxes retirement income generally.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | Partially exempt, first $6,000 of combined retirement income per taxpayer (shared with private pensions and IRA/401(k) below, not a separate $6,000). |
|---|---|
| Private (employer) pensions | Same $6,000 combined exclusion as public pensions; the statute does not distinguish by funding source. |
| Federal government pensions (FERS/CSRS) | Generic “public or private… regardless of the method of funding” language implies federal pensions share the same $6,000 exclusion, though no source names federal pensions specifically. |
| Military retirement pay | Fully exempt since tax year 2018 (Act 141 of 2017), separate from the general $6,000 cap. |
| IRA and 401(k)/403(b) distributions | Shares the same combined $6,000 cap as any pension exemption (not additive); traditional IRA distributions must be after age 59 1/2 or due to death or disability to qualify. |
| General retirement-income exclusion | A $29 per-taxpayer “65 Special” tax credit for filers 65 or older who do not claim the $6,000 retirement exemption (mutually exclusive with it, not additive). |
Coordinate this with your overall retirement plan
An adviser can help weigh how much of a pension or IRA withdrawal to take this year, whether a Roth conversion makes sense before or after a move, and how state tax interacts with the rest of your plan, but that does not replace the numbers in your own return.
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Social Security
Social Security is never taxed by Arkansas. Social Security has its own rules in every state; see the full breakdown in how Arkansas taxes retirement income generally.
Statute and sources
Governing citation: A.C.A. sec. 26-51-307.
- Arkansas Dept. of Finance and Administration, 2025 AR1000F/AR1000NR Instructions
- A.C.A. § 26-51-307, subsection (a)(1) is where the “public or private… regardless of the method of funding” language quoted above actually appears; the AR1000F instructions state the same rule in their own words (“The method of funding is irrelevant”)
Read September 4, 2026; the governing statute read at source September 6, 2026.
Related: how Arkansas taxes retirement income generally · does Arkansas tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.