Press Release

Asa Arkansas's Governor


Gov. Hutchinson signs Military Retired Pay Tax Cut into Law

LITTLE ROCK – Governor Asa Hutchinson today signed into law a bill to eliminate state income tax on military retirement pay. Hutchinson initially laid out this tax cut as a part of his package for the 2017 legislative session. 

Governor Asa Hutchinson issued the following statement:

“I am pleased that the General Assembly has approved this bill to eliminate state income taxes on military retiree pay. Arkansas currently exempts active duty military pay from state income taxes and beginning in January will also exempt military retirement pay.

“This initiative will make Arkansas a more military friendly retirement destination and will encourage veterans to start their second careers or open a business right here in the Natural State. I am confident that adding these highly skilled and educated veterans to our workforce will spur economic development and benefit all Arkansans."

House Bill 1162 passed through the General Assembly with wide bi-partisan support in both chambers. The law will go into effect in January of 2018. 

To view the photo album of today's bill signing, go HERE. Media outlets are welcome to use photos. Please attribute credit to the Governor's Office.

To view video of the tax cut signing, go HERE.  

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