Arkansas Veteran Benefits 2026 | Tax Exemptions, Property Tax & VA Programs

Arkansas is one of the most veteran-friendly states in the country when you look at the full picture: tax benefits, property exemptions, education programs, employment preference, and access to VA healthcare. If you’re a veteran or military retiree considering Central Arkansas, this guide breaks down every benefit available to you.

Arkansas Income Tax Benefits for Veterans

Military Retirement Pay: Fully Exempt

Arkansas does not tax military retirement pay — period. All branches of service are covered:

• Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force retirement pay
• National Guard and Reserve retirement pay
• Survivor Benefit Plan (SBP) payments received by surviving spouses

Financial impact: A retired E-7 receiving $35,000/year in retirement pay saves approximately $1,365/year in state taxes compared to a state taxing it at 3.9%. Over 20 years of retirement, that’s $27,300 in tax savings.

VA Disability Compensation: Not Taxed

VA disability compensation is not subject to federal or Arkansas state income tax. This is true regardless of your disability rating percentage.

Combat Pay and Hazardous Duty Pay

Combat zone pay is excluded from federal income tax per IRS rules, and Arkansas follows the federal exclusion.

Arkansas Property Tax Benefits for Veterans

100% Disabled Veterans: Complete Property Tax Exemption

Arkansas provides a complete property tax exemption on the primary residence for veterans who have:

• A 100% permanent and total (P&T) service-connected disability rating from the VA, OR
• Individual Unemployability (IU) rated at 100% by the VA

This exemption can save $1,000–$4,000+ per year depending on the home’s value and county tax rate. To claim it, apply at your county assessor’s office with your VA disability award letter showing 100% P&T status. There is no annual renewal requirement once approved in most counties.

Example savings in Pulaski County (Little Rock area): On a $220,000 home assessed at 20% of market value, the effective property tax is approximately $1,370/year — the 100% disabled veteran exemption eliminates this entirely.

Homestead Property Tax Credit: $375/Year

All Arkansas homeowners (including veterans) who occupy their home as a primary residence receive a $375 annual homestead property tax credit automatically. No application required after initial homestead registration.

Partial Disability Property Tax Reduction

Veterans with service-connected disability ratings below 100% may qualify for partial property tax relief. Contact your county assessor for current thresholds and benefit levels in your county.

Education Benefits for Veterans and Families

GI Bill (Federal)

Arkansas has 18 GI Bill-approved public universities and colleges, including UALR, UCA, UA Fayetteville, and many community colleges. The Post-9/11 GI Bill covers tuition, housing, and a book stipend. Arkansas public university tuition is among the most affordable in the nation, so GI Bill benefits typically cover full tuition with money remaining.

Arkansas Tuition Waiver for Dependents of Disabled/KIA Veterans

Under Arkansas law, children of Arkansas veterans who were killed in action or have a 100% service-connected disability may receive free tuition at any Arkansas state college or university. Requirements:

• Veteran must have been an Arkansas resident
• Child must be under 23 years of age (in most cases)
• Child must be admitted to and enrolled in an Arkansas state institution
• Does not cover room/board, but tuition itself is waived

National Guard Education Benefits

Members of the Arkansas National Guard may qualify for the Arkansas National Guard Tuition Assistance program, which covers a portion of tuition at Arkansas state institutions in addition to federal Tuition Assistance (TA).

Arkansas Employment Preference for Veterans

State Government Veterans Preference

Arkansas law provides a 5-point preference added to competitive exam scores for veterans applying for state government positions. Disabled veterans receive a 10-point preference. This applies to initial hiring at all Arkansas state agencies.

Arkansas Hire Vets Initiative

Many Arkansas state agencies and municipalities have veteran hiring initiatives. Arkansas also participates in the federal HIRE Vets Medallion program, which recognizes private employers committed to hiring veterans.

Veterans Hunting and Fishing Licenses

Arkansas offers free or reduced-cost hunting and fishing licenses for veterans:

• 100% service-connected disability: Free lifetime hunting and fishing licenses
• Other disability ratings: Reduced cost licenses available; contact the Arkansas Game and Fish Commission for current rates
• Active duty stationed in Arkansas: May purchase licenses at resident rates

Arkansas is consistently ranked as one of the top hunting and fishing states in the country — excellent waterfowl hunting in the Delta, world-class bass fishing on the Arkansas River and its lakes, and outstanding deer hunting throughout the Ouachita and Ozark regions.

Veterans Healthcare in Central Arkansas

Central Arkansas Veterans Healthcare System (CAVHS)

The VA’s Central Arkansas system is one of the strongest VA networks in the mid-South:

• John L. McClellan Memorial Veterans Hospital — Full-service inpatient hospital in Little Rock; primary care, specialty care, surgery, mental health, oncology, and more
• Eugene J. Towbin Healthcare Center — Major outpatient facility in North Little Rock, close to LRAFB; wide range of specialty clinics
• Community-Based Outpatient Clinics (CBOCs) in Conway, Pine Bluff, Searcy, El Dorado, and other Central Arkansas communities

TRICARE

Military retirees and their families retain TRICARE coverage after service. In Central Arkansas, TRICARE Prime, Select, and TRICARE for Life (with Medicare) are all available. The large medical community including UAMS gives TRICARE beneficiaries access to top-tier care.

Arkansas Veterans Service Organizations

Central Arkansas has active chapters of all major VSOs that can help you navigate benefits claims, appeals, and transition services:

• American Legion — Multiple posts in Little Rock, Jacksonville, Cabot, Conway, and surrounding communities
• Veterans of Foreign Wars (VFW) — Active posts throughout Central Arkansas
• Disabled American Veterans (DAV) — Little Rock chapter; assists with VA claims
• Arkansas Department of Veterans Affairs (ADVA) — State agency providing veterans services statewide; office in Little Rock
• Arkansas Vet Center — Little Rock; readjustment counseling, PTSD support, and MST services for combat veterans

VA Home Loan Benefit: Still the Best Mortgage in the Market

Veterans retain the VA home loan benefit for life — it can be used, repaid, and reused multiple times. In Central Arkansas, VA loans are particularly powerful because:

• Home prices are affordable ($160K–$300K near LRAFB) relative to other markets
• VA loans cover these amounts entirely with zero down
• 100% disabled veterans are exempt from the VA funding fee (saves $3,440–$6,600 on a typical purchase)
• No PMI means lower monthly payments vs. FHA or conventional with low down payment

More Resources for Veterans in Arkansas

• VA Loan Specialist in Arkansas
• VA Loan Limits Arkansas 2026
• Retiring Near Little Rock AFB — Military Retirement Guide
• Military & Veteran REALTOR® Ashley Watters
• LRAFB BAH vs. VA Mortgage 2026
• PCS Housing Guide for Little Rock AFB
• Cost of Living in Central Arkansas 2026