Arkansas is home to approximately 230,000 veterans — men and women who served in every conflict from World War II through the present day. The state provides a robust package of benefits recognizing that service through state tax advantages, housing assistance, educational opportunities, and dedicated veteran-serving facilities. The centerpiece of Arkansas veteran benefits is a full property tax exemption for 100% permanently and totally disabled veterans — one of the most generous in the region — combined with a 2018 law that made all military retirement income completely state income tax-free.
This guide covers every significant Arkansas veteran benefit program for 2026 — from the constitutional framework of the property tax exemption under Ark. Code § 26-3-306 to the education scholarships available to veterans' dependents under Ark. Code § 6-82-101, state employment preference under Ark. Code § 21-3-302, the two Arkansas Veterans Homes, hunting and fishing license waivers, and how to maximize federal VA disability benefits from an Arkansas address.
The Arkansas Department of Veterans Affairs (ADVA) is the state agency responsible for administering Arkansas veterans benefits programs, operating the state veterans homes, and providing veterans service and advocacy throughout Arkansas. ADVA is headquartered at 2200 Fort Roots Drive, Building 65, North Little Rock, AR 72114 (telephone: 501-683-2382).
ADVA provides the following core services to Arkansas veterans and their families:
In addition to ADVA state offices, most Arkansas counties maintain a County Veterans Service Officer (CVSO) — a local resource who can assist veterans with claims, benefits applications, and referrals to ADVA and federal VA programs. CVSOs are often the most accessible first point of contact for veterans living in rural parts of Arkansas. To find your county's CVSO, contact ADVA at 501-683-2382 or visit veterans.arkansas.gov.
Arkansas veterans access federal VA healthcare and benefits through:
The most financially significant state benefit for disabled Arkansas veterans is the full exemption from ad valorem property taxes on their primary residence. This exemption is codified at Arkansas Code § 26-3-306 and provides a complete property tax exemption — not just a reduction — for veterans who meet the eligibility criteria.
To qualify for the Ark. Code § 26-3-306 property tax exemption, a veteran must:
The Ark. Code § 26-3-306 exemption covers all ad valorem property taxes — state, county, and municipal — on the veteran's primary residence. There is no maximum home value cap. A veteran with a $500,000 home receives a full exemption on the entire property value, just as a veteran with a $150,000 home does. In Arkansas, where median home values vary significantly by county, the annual property tax savings can range from a few hundred dollars in rural counties to several thousand dollars in urban areas like Pulaski County (Little Rock).
To claim the property tax exemption under Ark. Code § 26-3-306:
The property tax exemption under Ark. Code § 26-3-306 extends to the surviving spouse of a qualifying veteran after the veteran's death, providing crucial financial protection for widows and widowers who may have been counting on this exemption as part of their financial planning.
For the surviving spouse to retain the property tax exemption, they must:
Surviving spouses should notify their county assessor's office promptly after the veteran's death and provide the death certificate along with documentation of the veteran's 100% P&T status. The exemption does not automatically transfer — proactive application is required to maintain the benefit.
Surviving spouses of veterans who died in the line of duty (not necessarily 100% P&T) may also be eligible for property tax relief through the surviving spouse exemption under Ark. Code § 26-3-306(c). Consult with your county assessor and ADVA to determine the applicable exemption provisions for your specific situation.
One of the most significant improvements to Arkansas veterans benefits in recent years is the complete exemption of military retirement pay from Arkansas state income tax — a change that has made Arkansas significantly more attractive as a retirement destination for military retirees.
Arkansas was historically a less veteran-friendly state when it came to military retirement taxation. For many years, Arkansas taxed military retirement pay as regular income, with only a partial exemption available. This disadvantaged Arkansas relative to neighboring states like Tennessee (which had no income tax) and Texas (no income tax).
In 2017, the Arkansas General Assembly passed legislation (effective 2018) that phased in a complete exemption of all military retirement income from Arkansas state income tax. By 2018, the exemption was fully in effect — making all military retirement pay 100% Arkansas state income tax-free with no dollar cap and no income limitation.
The Arkansas military retirement income tax exemption covers:
Note: VA disability compensation is a separate benefit that is exempt from federal income tax entirely — this is covered in the next section. The military retirement income exemption applies to retired pay received from the Defense Finance and Accounting Service (DFAS), not to VA disability compensation, which has its own federal tax exemption.
The dollar impact of the military retirement tax exemption depends on the retiree's Arkansas income tax bracket and the size of their retired pay. Arkansas has a top marginal income tax rate of 4.7% (for 2026) for income over approximately $24,300. For a typical military retiree with $30,000–$60,000 in annual retired pay:
Combined with the property tax exemption for 100% P&T veterans, Arkansas can provide an annual tax benefit of $3,000–$7,000+ for qualifying disabled military retirees — a meaningful financial advantage for those who choose Arkansas as their retirement state.
Arkansas veterans should understand that VA disability compensation is exempt from both federal and state income taxes — this is distinct from the military retirement pay exemption discussed above.
Under 26 U.S.C. § 104, VA disability compensation payments are excluded from federal gross income entirely. This means that a veteran receiving $3,737.85/month (the 2026 100% disability rate) pays zero federal income tax on that compensation — a benefit worth thousands of dollars annually for high-rated veterans. Arkansas follows the federal exemption and does not tax VA disability compensation at the state level either.
The distinction between military retired pay (DFAS) and VA disability compensation (VA) is important for veterans who receive both:
Arkansas provides significant educational support for veterans and their dependents through two primary state-funded programs:
The Arkansas Military Dependents Scholarship Program — distinct from the Arkansas Academic Challenge Scholarship — provides free tuition at any state-supported Arkansas college or university for dependents of Arkansas veterans who:
Eligible dependents include the veteran's children (under age 23 unless disabled) and spouse. The scholarship covers tuition for up to 8 semesters (4 academic years) at any Arkansas public two-year or four-year institution. The scholarship does not cover room, board, books, or fees — only tuition — but at Arkansas's public universities (University of Arkansas, Arkansas State, UALR, and others), free tuition represents a value of $5,000–$12,000 per year.
Apply through the Arkansas Department of Higher Education. Applicants must demonstrate Arkansas residency and provide documentation of the veteran's qualifying status (VA rating decision, KIA/MIA documentation).
The Arkansas Academic Challenge Scholarship under Ark. Code § 6-82-101 is Arkansas's primary lottery-funded merit scholarship program. While not exclusively a veterans' benefit, it provides substantial aid to Arkansas high school graduates — including children of veterans — based on academic merit and financial need. Awards range from $1,000 to $5,000 per year for qualifying students attending Arkansas public or private institutions.
Veterans' children attending Arkansas colleges who also qualify for the Arkansas Academic Challenge Scholarship can stack this award on top of the Military Dependents Scholarship (if eligible for both) or use the Challenge Scholarship independently as their primary aid source.
Members of the Arkansas National Guard may qualify for the National Guard Scholarship Fund, which provides assistance with tuition at Arkansas public colleges and universities for guard members in good standing. The fund is administered through the Arkansas Military Department — contact the State Education Services Officer (SESO) at the Arkansas Military Department for current funding availability, application cycles, and award amounts.
Beyond state programs, Arkansas veterans are eligible for federal GI Bill education benefits — primarily the Post-9/11 GI Bill (Chapter 33) for those who served on or after September 10, 2001, and the Montgomery GI Bill (Chapter 30) for earlier service members. Post-9/11 GI Bill covers 100% of tuition and fees at Arkansas public universities, a monthly housing allowance (BAH-equivalent), and a book/supply stipend. The University of Arkansas, Arkansas State University, and other state schools all participate in the GI Bill Yellow Ribbon Program to cover costs exceeding the state maximum for private and graduate programs.
Arkansas law provides a veterans' preference in state civil service employment under Ark. Code § 21-3-302, recognizing that veterans' military service and experience make them valuable employees in state government.
The preference applies to initial hiring for state civil service positions. It does not guarantee employment — it provides an advantage in competitive hiring processes. Some state agencies extend preference to promotional competitions as well. Veterans seeking state employment should clearly note their veteran status on their application and attach their DD-214 to claim the preference.
In addition to the state preference, Arkansas veterans competing for federal positions at federal installations and agencies within Arkansas (including Little Rock Air Force Base, Fort Smith, Pine Bluff Arsenal, and federal civilian agencies) receive veterans' preference under federal law. The federal preference is stronger than the state preference — disabled veterans with a 10-point preference are listed ahead of all non-preference and 5-point preference eligibles on federal hiring registers. Federal veterans' preference is administered under 5 U.S.C. § 2108 and the Veterans' Preference Act.
Arkansas operates two state veterans homes that provide skilled nursing care and long-term residential care for eligible Arkansas veterans at subsidized costs significantly below private nursing home rates. Both facilities are administered by the Arkansas Department of Veterans Affairs.
Location: 4701 West 20th Street, North Little Rock, AR 72114
Phone: 501-372-4574
The North Little Rock facility is the larger of the two state veterans homes and provides skilled nursing care (for veterans with complex medical needs), intermediate care, and domiciliary care (residential care for veterans who are ambulatory and capable of self-care). The facility has a significant capacity and serves veterans from central and eastern Arkansas. Amenities include recreational programs, chapel services, and specialized dementia and memory care units.
Location: 1125 North College Avenue, Fayetteville, AR 72703
Phone: 479-444-7001
The Fayetteville facility serves veterans in northwestern Arkansas — one of the state's fastest-growing regions — and provides skilled nursing and intermediate care. The Fayetteville location is convenient for veterans in Benton, Washington, Carroll, and surrounding counties, as well as those near Fort Smith.
To be eligible for admission to an Arkansas state veterans home, a veteran must:
Priority for admission is given to veterans with service-connected conditions that require the level of care provided. Costs are on a sliding scale based on the veteran's income and ability to pay — VA per diem subsidies, Medicaid, and the veteran's own funds (including VA pension and disability compensation) are used to cover the daily rate. Many veterans pay significantly less than the private market rate for comparable care.
Arkansas's full property tax exemption is only available at 100% P&T. If your rating isn't there yet, REE Medical helps veterans document underclaimed conditions for a rating increase. Free consultation.
Check My Rating Increase Options — Free →Arkansas provides hunting and fishing license benefits for veterans with qualifying service-connected disabilities through the Arkansas Game and Fish Commission (AGFC).
Arkansas veterans with a 100% service-connected disability rating from the VA are eligible for a free lifetime hunting and fishing license from the Arkansas Game and Fish Commission. The license covers:
To obtain the free lifetime license, visit any AGFC regional office or license vendor and present proof of your 100% VA disability rating (your rating decision letter). The license is issued once and is valid for the veteran's lifetime — no annual renewal is required.
Arkansas Game and Fish Commission maintains a number of physically accessible hunting and fishing areas and blinds designed for veterans and sportspeople with mobility limitations. AGFC's Disability Access Hunting and Fishing Program provides information on adapted facilities, parking, and specialized equipment at AGFC-managed areas. Contact AGFC at 800-364-4263 or visit agfc.com for the current list of accessible facilities.
Arkansas provides several motor vehicle-related benefits for veterans and disabled veterans through the Office of Motor Vehicle — a division of the Arkansas Department of Finance and Administration:
Arkansas veterans with a service-connected disability rating are eligible for disabled veteran license plates at no charge. Veterans with a rating of 100% receive plates at no annual fee; veterans with lower ratings pay a reduced fee. Disabled veteran plates include the distinctive "DV" designation and grant access to handicapped parking privileges (with a separate disability parking placard or permit where required).
Arkansas offers a range of distinctive license plates honoring military service, including:
Apply through any Arkansas Revenue Office with your DD-214, discharge certificate, or other qualifying documentation. Some specialty plates require a small annual fee; others (Purple Heart, Medal of Honor) are provided at no charge.
Arkansas veterans are eligible for burial benefits through both the federal VA system and the state of Arkansas:
The Arkansas Department of Veterans Affairs operates state veterans cemeteries for eligible Arkansas veterans. State veterans cemeteries provide burial at no cost to the eligible veteran — the veteran's family pays only for the opening and closing of the grave (for private committal services) and for any additional services they choose. Eligible veterans, their spouses, and dependent children may be interred in state veterans cemeteries.
Arkansas veterans are also eligible for burial in the national cemetery system. The Fayetteville National Cemetery (700 Government Ave, Fayetteville, AR 72701) is Arkansas's primary federal national cemetery, operated by the National Cemetery Administration. It is open to eligible veterans, their spouses, and dependent children at no cost for burial in a pre-placed government-furnished marker. Other national cemeteries in neighboring states are also accessible to Arkansas veterans.
Federal VA provides several burial benefits for veterans who die outside of VA care:
Members of the Arkansas Army National Guard and Arkansas Air National Guard have access to a range of state benefits in addition to federal benefits:
Active duty Guard members are eligible for tuition assistance through the Arkansas Military Department's National Guard Scholarship Fund, which supplements federal GI Bill benefits for Guard members attending Arkansas colleges and universities. State tuition assistance is coordinated through the unit's education officer — contact your unit's Education NCO or the Arkansas Military Department's Education Office at Camp Joseph T. Robinson, North Little Rock.
When called to state active duty (not Title 10 federal orders) for emergencies, disasters, or civil support missions, Arkansas National Guard members receive state pay at their normal military pay grade, state workers' compensation coverage, and continuation of benefits through the Arkansas Military Department.
Guard members who deploy on Title 10 active duty orders and sustain service-connected injuries during those deployments are entitled to VA disability claims as veterans — and upon establishing a qualifying rating, become eligible for the same Arkansas property tax exemption and other benefits available to regular military veterans. Guard service does not create a second-tier citizenship in terms of benefits eligibility; the trigger is service-connected disability established through the VA claims process, regardless of Guard vs. active component status.
Arkansas's state benefits work most powerfully when combined with maximized federal VA disability benefits. Several federal benefits are particularly relevant for Arkansas veterans:
The foundation of most Arkansas state benefits — the property tax exemption, the hunting/fishing license waiver — requires a 100% P&T VA rating. Yet many Arkansas veterans are underrated for service-connected conditions. Common underrated conditions include:
Veterans who cannot reach 100% schedularly but who cannot maintain substantially gainful employment due to their service-connected conditions may qualify for Total Disability based on Individual Unemployability (TDIU) — which pays at the 100% compensation rate ($3,737.85/month in 2026) and may qualify for the 100% P&T property tax exemption if rated as permanent.
In addition to all state benefits, Arkansas veterans with 100% P&T ratings receive enhanced federal benefits including: full CHAMPVA healthcare for dependents, free VA healthcare with no copays at Priority Group 1, access to SAH and SHA housing grants, and the right to transfer unused Post-9/11 GI Bill benefits to dependents (if they served at least 10 years and transfer was approved before retirement). The combination of state and federal benefits for 100% P&T veterans in Arkansas is among the most comprehensive benefit packages available anywhere in the country.
| Organization | Contact | Services |
|---|---|---|
| Arkansas Department of Veterans Affairs (ADVA) | 501-683-2382 veterans.arkansas.gov | State benefits, VSO services, veterans homes administration |
| VA Regional Office (North Little Rock) | 1-800-827-1000 | Disability claims, appeals, pension, education benefits |
| John L. McClellan VA Medical Center | 501-257-1000 | VA healthcare, mental health, specialty care |
| Arkansas Game and Fish Commission | 800-364-4263 agfc.com | Disabled veteran hunting/fishing licenses |
| Arkansas Dept. of Higher Education | 501-371-2000 scholarships.adhe.edu | Military Dependents Scholarship, Academic Challenge |
| Arkansas Revenue Office | 501-682-1010 dfa.arkansas.gov | Disabled veteran license plates, vehicle registration |
| VA Caregiver Support Line | 1-855-260-3274 | PCAFC caregiver benefits for Arkansas veterans' families |
No. The Ark. Code § 26-3-306 property tax exemption applies to property taxes on real property — it requires that the veteran own and occupy the property as their primary residence. Renters do not pay property taxes directly (the landlord pays, and may or may not pass costs through to tenants) and therefore cannot claim the veteran property tax exemption. Veterans who rent may still benefit from other Arkansas programs, including the military retirement income tax exemption and hunting/fishing license waivers.
Yes. Military disability retirement pay received from DFAS under Chapter 61 of Title 10 is treated as military retirement pay for Arkansas income tax purposes and is fully exempt. This is distinct from VA disability compensation (which is paid by the VA and is federally tax-exempt under 26 U.S.C. § 104). Veterans who receive both Chapter 61 military disability retirement pay and VA disability compensation receive different tax treatment for each — but both are ultimately exempt from Arkansas state income tax.
Generally, no. The Ark. Code § 26-3-306 exemption requires Arkansas residency — the property must be the veteran's primary residence, and the veteran must be an Arkansas resident. Non-resident veterans who own vacation property or investment property in Arkansas cannot claim the exemption. Veterans who are in the process of relocating to Arkansas should establish Arkansas residency as their primary domicile to qualify.
If VA reduces the veteran's rating below 100% P&T, the property tax exemption would no longer qualify — the veteran must notify their county assessor of any change in VA rating status. If the rating is reduced due to an incorrect VA decision, the veteran should immediately appeal the reduction through VA's appeals process. During the appeal, the veteran's rating remains at the prior level pending the appeal decision. It is important to appeal rating reductions promptly to preserve eligibility for both federal benefits and state benefits like the Arkansas property tax exemption.
The full Arkansas property tax exemption requires 100% P&T status. Many Arkansas veterans with PTSD, musculoskeletal conditions, or multiple conditions are underrated. Take our free 2-minute screener to see where you stand.
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