Whoa, Arkansas is not friendly at all when it comes to income taxes. Social Security is not taxed, which is good, but once your total income (Gross income essentially) breaks $75k you’re going to be a 6.9% bracket.
On top of the high bracket too, taxpayers only get $6k in total retirement account exemptions. As of 2018, military pensions are not taxed.
Property taxes are among the lowest in the nation though.
However, sales tax is the 3rd highest in the US.
So, of the three tax buckets, income, property and sales, Arkansas fares poorly in two.
With proper planning, of course, you can minimize your income taxes. And while you’re stuck with high sales tax, having a low property tax is probably one of the smartest moves you can make in retirement.
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