Arkansas Veteran Tax Exemptions 2026

Veterans with a 100% Permanent and Total rating in Arkansas get two layers of relief that work together: VA disability compensation is completely tax-free at the state level, and the property tax on your home can be eliminated entirely. Few states pair those two benefits as cleanly as Arkansas does, which is worth knowing if you are weighing where to plant roots. Read on for the exact qualifications, what documentation to bring, and where to file.

Does Arkansas tax VA disability income?

No. Arkansas 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 Arkansas.

Arkansas property tax exemption for disabled veterans

100% exempt at 100% P&T. Full property tax exemption for 100% P&T disabled vets.

Reaching that top rating in Arkansas means you could stop paying property tax on your home altogether, which for most veterans is the largest single tax bill they face each year.

What rating do you need in Arkansas?

The size of your break depends on your combined VA rating. In Arkansas, the full break is reserved for veterans at the top rating, usually 100 percent or 100 percent Permanent and Total. Lower ratings may still qualify for a smaller break, so it is worth checking with your county even if you are not yet at 100 percent. 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 Arkansas 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 Arkansas 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 Arkansas Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.