Arizona Veteran Tax Exemptions 2026

Arizona does not tax your VA disability compensation, period. The state treats it the same way the federal government does: it does not count as taxable income, at any rating, full stop. Arizona also gives disabled veterans a property tax break that trims the assessed value of your primary home, and this page explains the income and disability requirements and the county office you need to contact to claim it.

Does Arizona tax VA disability income?

No. Arizona does not tax VA disability compensation. The state treats it the same way the federal government does, which means it is left off your taxable income entirely. Whether you are rated 10 percent or 100 percent, your VA disability pay is not taxed by Arizona.

Arizona property tax exemption for disabled veterans

Up to $4,476 reduction. Arizona exempts VA disability and offers property tax exemption based on disability and income.

A tiered break that grows as your rating climbs means even veterans earlier in the claims process are worth applying, and locking it in sooner means more years of savings.

What rating do you need in Arizona?

The size of your break depends on your combined VA rating. In Arizona, the break is tiered, so even a partial rating can lower your property tax bill, and the amount climbs as your rating climbs. Not sure what your combined rating works out to? Run it through our VA disability calculator first, and if you are aiming for the top tier, check whether you qualify for Permanent and Total status.

How to claim your Arizona exemption

1. Confirm your current combined rating and whether it is Permanent and Total. Your VA award letter shows both.
2. Gather your DD-214 and your VA disability award letter. Most Arizona offices ask for both.
3. Contact your county tax assessor for the property tax exemption, and the your state tax agency or Department of Veterans Affairs for the income side.
4. File before your county deadline. Many counties require you to apply once, then renew only if your rating changes.

Always confirm the current figures and deadlines with your county assessor and the Arizona Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.