Summary of Tax Cuts

Summary of Tax Cuts

Since 2015, the Hutchinson Administration has led the effort to pass legislation providing a total of more than $150 million income tax relief to 1.3 million Arkansans. 

2017: $13 Million Retired Military Tax Cut

In 2017, the Governor signed legislation eliminating the income tax on military retirement pay, known as the Retired Military Tax Cut.

  • It will go into effect starting January 2018.
  • Creating tax relief for military retirees will make Arkansas a more military friendly retirement destination and improve the economy by encouraging veterans to start their second careers or open a business in Arkansas.
     

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2017: $50 Million Cut
(Second Largest in Arkansas History)

In 2017, Governor Hutchinson signed the second largest cut to the income tax rate in Arkansas history—$50M. This cut targeted low income Arkansans.  

  • Removed approximately 120,000 taxpayers from the rolls.

In all, 90% of the state’s individual income taxpayers will benefit from substantive tax relief legislation since Governor Hutchinson took office in 2015. 

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2015: $102 Million Cut
(Largest in Arkansas History)

In 2015, Governor Hutchinson fulfilled his top campaign promise by signing the Middle Class Income Tax Cut of $102M, the largest cut to the income tax rate in Arkansas history.

  • This tax cut returned as much as $540 annually to nearly 500,000 taxpayers.

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