State-by-State Guide to Taxes on Retirees

6.5% state levy. Localities can add as much as 5.13%, and the average combined rate is 9.42%, according to the Tax Foundation. The state taxes food at 1.5%, and localities can add to that.

Low: 0.9% (on up to $4,499 of taxable income)

High: 6.9% (on more than $79,301 of taxable income)

Benefits are not taxed.

Up to $6,000 in civil-service, state and local government, and private pensions is exempt. The exemption refers to income from public or private retirement systems, plans and programs. IRA distributions qualify for the $6,000 exemption if the taxpayer is 59 1/2 or older. Out-of-state government pensions also qualify for the exemption. Military pensions are fully exempt. Railroad Retirement benefits are fully exempt.

IRAs

Qualifies for exemption of up to $6,000.

401(k)s and other Defined-Contribution Employer Retirement Plans

Qualifies for exemption of up to $6,000.

Private Pensions

Qualifies for exemption of up to $6,000.

Public Pensions

Qualifies for exemption of up to $6,000. Railroad Retirement benefits are fully exempt.

The median property tax on Arkansas’ median home value of $114,700 is $721.

Tax breaks for seniors: The taxable assessed value of homes of residents 65 or older, or those who are disabled, can be frozen at the previous year's value unless improvements are made or the property is sold.

The state sales tax on vehicle purchases over $4,000 is 6.5% (7% for Texarkana residents). Sales below that threshold are tax-free. A local property tax is also levied annually on a car’s assessed value. Rates are set at the county level. For example, in Little Rock you pay $64.30 per $1,000. The tax on a $30,000 vehicle would be $1,929.

None