does arkansas tax military retirement
1 Retirement Income-When it comes to retirement income and benefits, the state of Arkansas does tax those, but the state also exempts up to $6,000 in retirement income from the state income tax.2  This includes military, civil service, local, and state government as well as private pensions. Retirement Income-When it comes to retirement income and benefits, the state of Arkansas does tax those, but the state also exempts up to $6,000 in retirement income from the state income tax.