Arkansas Veteran Benefits at a Glance
Arkansas is home to roughly 220,000 veterans and operates its statewide programs through the Arkansas Department of Veterans Affairs. The state's veterans benefits landscape combines federal VA benefits (disability compensation, healthcare, GI Bill, VA home loans) with a layer of state-specific programs that can meaningfully change a veteran's cost of living — particularly through property tax relief and state income tax treatment of military retirement pay.
Arkansas pairs low cost of living with full property tax exemption for 100% disabled veterans, making it one of the most affordable retirement states. For service members deciding where to retire — or for veterans evaluating whether to relocate — the questions that matter most are usually: how will my retirement pay be taxed, what happens to my property tax bill if I'm 100% disabled, can my children use state tuition benefits, and how strong is the state veterans agency? This guide walks through each in turn.
Arkansas Taxes for Veterans
Military Retirement Pay
Arkansas fully exempts military retirement pay from state income tax.
This treatment matters because military retirement pay typically ranges from $20,000 to $90,000+ per year depending on rank and years of service. In a state that fully exempts the income, a retiree drawing $50,000 of retired pay avoids the entire state income tax on that amount — which, in a 5% state, equals roughly $2,500/year in savings versus a fully-taxing state. Over 20 years of retirement, that one rule alone can be worth $50,000+.
VA Disability Compensation
Like all states, Arkansas follows federal law and does not tax VA disability compensation. Whether you receive $171/month at 10% or roughly $4,044+/month at 100% with a qualifying dependent, that money is tax-free at both the federal and state level. See our VA disability calculator to estimate your monthly compensation.
Arkansas Property Tax Benefits for Veterans
Headline: Veterans rated 100% service-connected receive a full homestead property tax exemption.
Arkansas exempts the entire homestead property tax for veterans with a 100% permanent and total service-connected disability, as well as for those who are blind or lost a limb. The exemption transfers to the unremarried surviving spouse and to minor dependent children. Apply through the county assessor with a VA award letter.
For most homeowners, property tax is the second-largest annual housing expense after the mortgage itself. In Arkansas, qualifying 100% disabled veterans can eliminate this expense entirely on their primary residence — often a savings of $3,000 to $15,000 per year depending on the home's value.
How to Apply
Property tax exemptions are administered at the county level by the county assessor (sometimes called tax assessor, appraisal district, or commissioner of revenue depending on the state). You'll typically need: a copy of your VA award letter showing disability percentage and effective date, proof of residency, proof of ownership (deed), and a completed state application form. Many counties accept applications year-round but only apply the exemption beginning in the next tax year.
Arkansas Education Benefits for Veterans & Dependents
Arkansas Department of Higher Education Veteran Tuition Waiver
Children and spouses of veterans who were killed in action, MIA, or POW, and dependents of 100% disabled veterans, qualify for free tuition at Arkansas state-supported colleges and universities.
These state programs typically stack with — rather than replace — federal benefits like the Post-9/11 GI Bill. Many veterans use federal benefits first and state programs for any remaining costs, or use state benefits for dependents while preserving federal benefits for the service member. Application is usually handled directly through the school's veteran affairs office, which coordinates with the state agency.
In-State Tuition
Under federal law (the Veterans Access, Choice, and Accountability Act), public colleges in Arkansas — like all states — must charge in-state tuition to veterans using GI Bill benefits regardless of state residency, provided the veteran enrolls within three years of discharge. This rule is especially valuable in higher-cost states like California, Maryland, and Washington.
Employment & Professional Licensing
State Veteran Hiring Preference
5/10-point veteran preference on state employment; the Arkansas Department of Workforce Services provides priority of service.
Occupational Licensing
Military training credit for licensing; spouse licensure expedited.
Translating military experience into civilian credentials is one of the most common pain points in transition. Arkansas's licensing rules can shave months — and thousands of dollars — off the path to civilian roles in healthcare, commercial driving, IT, and the trades. The Arkansas Department of Veterans Affairs can point you to industry-specific resources and to apprenticeship programs that count GI Bill benefits.
State Parks, Hunting & Fishing
Arkansas State Parks
Free state park camping for 100% disabled veterans; reduced rates for other veterans.
Hunting & Fishing Licenses
Resident disabled veterans (100%) qualify for free lifetime fishing and hunting licenses.
Vehicles, Plates & Driver Licenses
Disabled Veteran License Plates
Disabled veteran license plates issued at no charge; reduced registration fees for qualifying veterans.
Veteran Driver License Designation
Veteran designation on Arkansas driver license available at no extra cost. The veteran designation is recognized as proof of service at most businesses offering veteran discounts (restaurants, retailers, hotels) and eliminates the need to carry your DD-214 for routine ID purposes.
State Veteran Homes & Cemeteries
Arkansas operates 2 state veteran homes, providing skilled nursing, domiciliary, and/or memory care to eligible veterans (and in some cases spouses and Gold Star parents). Admission requirements vary by facility but generally require honorable discharge, state residency, and clinical need for the level of care offered. The VA typically reimburses a portion of the per-diem cost, making state homes significantly more affordable than private long-term care.
The state also maintains 2 state veteran cemetery/cemeteries in addition to any federal VA national cemeteries within the state. Burial benefits for honorably discharged veterans typically include the gravesite, opening and closing, a government headstone or marker, a U.S. burial flag, and a Presidential Memorial Certificate.
Arkansas Department of Veterans Affairs
The Arkansas Department of Veterans Affairs is Arkansas's official cabinet-level (or commission-level) state agency for veteran affairs. It administers state benefits, accredits and supervises County Veteran Service Officers (CVSOs), operates state veteran homes and cemeteries, and serves as the liaison between Arkansas veterans and the federal VA. The agency does not charge fees for assistance — accredited VSO help is always free.
- Website: https://www.veterans.arkansas.gov
- Phone: 501-683-2382
- Capital: Little Rock, AR
When in doubt, start with the state agency. They can refer you to a free accredited representative, walk you through state-specific applications (which are easy to miss when you only look at VA.gov), and help with emergency assistance programs available in many states for veterans experiencing financial crisis.
Is Arkansas a Good State for Veterans?
Cost of Living
Arkansas's overall cost of living is low relative to the U.S. average. Combined with the state's tax treatment of retirement pay and property tax rules, this drives the real after-tax purchasing power of a military retirement.
Climate
Humid subtropical climate with four mild seasons; the Ozarks offer cooler summers.
Veteran Population & Community
With roughly 220,000 veterans, Arkansas has a substantial veteran community with good access to VA healthcare and active veteran service organizations in most metro areas.
Military Installations
Major active-duty installations in Arkansas: Little Rock AFB, Pine Bluff Arsenal, Camp Robinson (ARNG). Proximity to an active-duty base usually means better commissary/exchange access, on-base healthcare options (Tricare), and a stronger pool of veteran-friendly employers and housing.
Frequently Asked Questions — Arkansas Veterans Benefits
What benefits do veterans get in Arkansas?
Arkansas veterans receive a mix of property tax relief, education benefits, employment preference, free or discounted state park access, hunting and fishing license discounts, and access to 2 state veteran homes and 2 state veterans cemetery/cemeteries. Arkansas pairs low cost of living with full property tax exemption for 100% disabled veterans, making it one of the most affordable retirement states.
Do disabled veterans pay property taxes in Arkansas?
Arkansas fully exempts property tax on the primary residence of veterans rated 100% permanent and total service-connected disabled. Arkansas exempts the entire homestead property tax for veterans with a 100% permanent and total service-connected disability, as well as for those who are blind or lost a limb. The exemption transfers to the unremarried surviving spouse and to minor dependent children. Apply through the county assessor with a VA award letter.
Does Arkansas tax military retirement pay?
Arkansas fully exempts military retirement pay from state income tax.
Does Arkansas offer free college for veterans or dependents?
Arkansas's primary education benefit is the Arkansas Department of Higher Education Veteran Tuition Waiver. Children and spouses of veterans who were killed in action, MIA, or POW, and dependents of 100% disabled veterans, qualify for free tuition at Arkansas state-supported colleges and universities.
What is the official state veterans agency in Arkansas?
The Arkansas Department of Veterans Affairs (501-683-2382) is the official state agency. Visit https://www.veterans.arkansas.gov for the most current programs, accredited claim assistance, and county-level Veteran Service Officer contacts.
Is Arkansas a good state for military retirees?
Arkansas pairs low cost of living with full property tax exemption for 100% disabled veterans, making it one of the most affordable retirement states. Cost of living is low, and humid subtropical climate with four mild seasons; the ozarks offer cooler summers.
Disclaimer: State veterans benefits change frequently as legislatures pass new laws. Always verify current eligibility, dollar amounts, and application procedures with the Arkansas Department of Veterans Affairs or an accredited Veterans Service Officer before relying on any information on this page. This site provides educational information, not legal or tax advice.