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Iowa vs Arizona Veterans Benefits

Side-by-side comparison of every major state-level veteran benefit. Use this to evaluate whether Iowa or Arizona is the better fit for your retirement, PCS, or post-service relocation.

BenefitIowaArizona
Military retirement pay taxFully exemptFully exempt
Property tax for 100% disabled vetFull exemption on homesteadPartial reduction
Property tax detailVeterans rated 100% service-connected disabled receive a 100% property tax credit on their homestead.Disabled veterans receive a property tax exemption tied to assessed value and income limits.
Veteran population (approx)200,000510,000
Cost of livinglowaverage
ClimateContinental climate with cold snowy winters and warm humid summers.Hot desert summers and mild winters; minimal humidity. Higher elevations (Flagstaff, Prescott) offer four seasons.
Top education benefitIowa National Guard Educational Assistance ProgramArizona National Guard Tuition Reimbursement Program
State veteran homes12
State veterans cemeteries13
Major military installationsIowa Army National Guard installations (no major active-duty bases)Luke AFB, Davis-Monthan AFB, Fort Huachuca, MCAS Yuma
State park access (disabled vet)Free Iowa State Parks camping for 100% disabled Iowa veterans.Arizona State Parks offers a discounted annual pass for disabled veterans, with free day-use for 100% disabled veterans.
Hunting / fishingDisabled resident veterans qualify for reduced fees; veterans with 0% rating still get discounted licenses.Resident 100% disabled veterans qualify for free combination hunting and fishing licenses; Pioneer license available to long-time residents.
State agencyIowa Department of Veterans AffairsArizona Department of Veterans' Services
Agency phone515-252-4698602-255-3373

Which state is better for veterans — Iowa or Arizona?

There's no universal answer; the better state depends on your priorities. Below are the factors that most often decide the question.

If you're a military retiree

Both retirement income tax and property tax matter most in retirement. Iowa does not tax military retirement pay, while Arizona does not tax military retirement pay. On property, Iowa offers a full homestead exemption to 100% P&T veterans, and Arizona offers a partial property tax reduction.

If you have school-age children

Iowa's headline program is the Iowa National Guard Educational Assistance ProgramUp to 100% tuition assistance for Iowa Guard members at qualifying institutions; children of deceased Iowa Guard/military members eligible for the Children of Veterans Tuition Grant. Arizona's is the Arizona National Guard Tuition Reimbursement ProgramReimburses tuition for Arizona National Guard members at state schools. Veterans can use the Post-9/11 GI Bill at Arizona public colleges with in-state tuition under the Yellow Ribbon and federal Choice Act.

If you're still on active duty

Proximity to a major installation matters for housing markets, healthcare options (Tricare), and post-service employment networks. Iowa hosts 1 significant installation(s) including Iowa Army National Guard installations (no major active-duty bases).Arizona hosts 4 including Luke AFB, Davis-Monthan AFB, Fort Huachuca.

Climate and lifestyle

Iowa: Continental climate with cold snowy winters and warm humid summers. Arizona: Hot desert summers and mild winters; minimal humidity. Higher elevations (Flagstaff, Prescott) offer four seasons.

Other comparisons

Verify current benefits with each state's official veterans agency. State programs and dollar amounts change as legislatures pass new laws.