---
title: Arkansas Military & Veteran Property Tax Exemptions (2026)
slug: arkansas-veteran-property-tax-exemptions-2026
description: >-
  How Arkansas fully exempts 100% disabled veterans from property tax, plus how
  it taxes military pay. Connect with a VeteranPCS agent in Arkansas today.
publishedAt: '2025-12-20T09:00:00.000Z'
updatedAt: '2026-06-21T00:00:00.000Z'
author: VeteranPCS
categories:
  - Financial Guidance
canonical: 'https://www.veteranpcs.com/blog/arkansas-veteran-property-tax-exemptions-2026'
componentSlug: financial-guidance
stateSlug: arkansas
---
# Arkansas Military & Veteran Property Tax Exemptions (2026)

If you serve in the military or have served, Arkansas offers one of the clearest property tax breaks in the country for fully disabled veterans, along with income tax rules that protect military pay. Arkansas draws many military families after a PCS, which is short for Permanent Change of Station, the official military move from one duty station to another, with Little Rock Air Force Base in Jacksonville, Fort Smith and the former Fort Chaffee in the west, and the Pine Bluff Arsenal in the south. This guide explains the main rules in plain language and points you to the state's own sources. Tax law changes, so treat these figures as a starting point and confirm the current rules before you file.

## How Arkansas Helps Disabled Veterans With Property Taxes

Arkansas gives a full property tax exemption to its most severely disabled veterans. The U.S. Department of Veterans Affairs, known as the VA, is the federal agency that rates service-connected disabilities, and the highest rating opens the door to this benefit.

Under Arkansas law, set in Arkansas Code 26-3-306, a veteran with a service-connected 100 percent total and permanent disability rating is exempt from paying all state property taxes on the homestead and personal property the veteran owns and lives in. The same exemption reaches a veteran who has been awarded special monthly compensation by the VA for the loss of, or loss of use of, one or more limbs, or for total blindness in one or both eyes. As the [Arkansas Department of Finance and Administration's property tax relief page](https://www.dfa.arkansas.gov/office/arkansas-assessment-coordination-division/real-property/property-tax-relief/) and county collectors describe, this is a true exemption, not a deduction, so a qualifying veteran's homestead is removed from the property tax rolls.

### What the Exemption Covers and Excludes

The exemption applies to the homestead you occupy and to personal property you own. It does not cover rental property, and county offices note that special improvement taxes, city liens, sanitation fees, and similar charges are not part of the exemption. You must occupy the home to qualify. Because the exact reach can vary by county, confirm the details with your county collector.

### Surviving Spouses and Dependent Children

The benefit can carry to a surviving spouse and to minor dependent children. The surviving spouse and minor dependent children of a veteran who died from a service-connected cause are also exempt from these property taxes, and the surviving spouse keeps the exemption as long as he or she remains unmarried. Confirm the conditions with your county collector and the Arkansas Department of Veterans Affairs.

## How It Works With Your Local Tax Bill

Property tax in Arkansas is assessed and collected at the county level. You assess your property with the county assessor and pay through the county collector, and you claim the disabled veteran exemption by giving the county your VA documentation. The VA mails a Summary of Benefits letter each year, and counties such as Pulaski County, home to Little Rock and Little Rock Air Force Base, [post the disabled veteran exemption process](https://pulaskicountytreasurer.net/dav/) for residents to follow.

Veterans who do not qualify for the full exemption still benefit from a break every Arkansas homeowner receives. Under Amendment 79, the state gives a homestead property tax credit on your principal residence. The [Department of Finance and Administration](https://www.dfa.arkansas.gov/office/arkansas-assessment-coordination-division/real-property/property-tax-relief/) administers this relief, and the credit rises to up to $600 beginning with 2026 tax bills, up from $500. Amendment 79 also caps how fast the taxable value of a homestead can rise, at 5 percent per year, which steadies the bill over time. If you are weighing where to settle, our guide to the [military bases in Arkansas](/blog/what-military-bases-are-in-arkansas) can help you picture the local cost of owning a home.

## Military Pay and Arkansas State Income Tax

Arkansas has a state income tax, but it shields military pay broadly. Military pay earned for service in an active or reserve component of the armed forces is exempt from Arkansas income tax. Military retirement pay is also exempt, a benefit Arkansas put in place in 2017. As the state's [guide for military service members](https://portal.arkansas.gov/services-right-for-you/i-am-a-military-service-member/) notes, service members may qualify for an exemption from state income tax on military pay and allowances, along with other breaks.

VA disability compensation is not part of federal income, so Arkansas does not tax it either. Between exempt active-duty pay, exempt retirement pay, and untaxed VA compensation, many military families owe little or no Arkansas income tax on their service income. Rates and rules can change, so confirm the current details with the Department of Finance and Administration before you file.

## A Note for Military Spouses: MSRRA

If you are a military spouse, the Military Spouse Residency Relief Act, known as MSRRA, may matter to you. MSRRA is a federal law that lets a military spouse keep a home state for tax and voting purposes even after moving on military orders. You do not automatically become an Arkansas resident just because your service member got orders here.

Under the related federal rules, a service member, the spouse, or both may choose the service member's home state, the spouse's home state, or the service member's permanent duty station for residency. Because that choice affects both states' taxes, confirm yours before you file. For the property tax exemption in this guide, what usually matters most is that the qualifying veteran owns and lives in the home as the homestead.

## How to Apply and Where to Verify

You claim the disabled veteran exemption through your county collector, with your VA Summary of Benefits letter showing the 100 percent total and permanent rating or the qualifying special monthly compensation, and many counties ask you to submit the letter each year. Because the rules and deadlines vary by county, confirm the current details with your county collector and the [Arkansas Department of Veterans Affairs](https://www.veterans.arkansas.gov/) before you file.

When you want a local read on a neighborhood and its tax rates, you can ask Shanel Harris, a VeteranPCS agent in the Little Rock area near Little Rock Air Force Base, for current listings and a sense of local property taxes.

If a VA loan is part of your plan, which is a home loan backed by the U.S. Department of Veterans Affairs, learn [what the benefits of a VA loan are](/blog/what-are-the-benefits-of-a-va-loan), see [how a zero-down VA loan works](/blog/how-does-a-0-down-va-loan-work), read our [complete guide to buying your first home with a VA loan](/blog/complete-guide-to-buying-your-first-home-with-a-va-loan), and review the [2026 VA loan limits for military homebuyers](/blog/2026-va-loan-limits-explained-for-military-homebuyers). When you are ready, you can [connect with a VeteranPCS lender](https://www.veteranpcs.com/contact-lender) or [connect with our VeteranPCS network in Arkansas](https://www.veteranpcs.com/arkansas).

## Frequently Asked Questions

### Do disabled veterans pay property taxes in Arkansas?

A veteran with a service-connected 100 percent total and permanent disability rating, or a qualifying special monthly compensation award, is exempt from all property taxes on the homestead and personal property he or she owns and occupies. It is a full exemption, not a partial deduction. Confirm your eligibility with your county collector and the Arkansas Department of Veterans Affairs.

### What disability rating do I need for the Arkansas veteran exemption?

You generally need a service-connected 100 percent total and permanent rating from the VA. The exemption also reaches veterans awarded special monthly compensation for the loss, or loss of use, of one or more limbs, or for total blindness in one or both eyes.

### Does Arkansas tax military retirement pay?

No. Arkansas exempts military retirement pay from state income tax, a benefit in place since 2017. Active and reserve military pay is also exempt, and VA disability compensation is not taxed.

### What is the Arkansas homestead property tax credit?

It is a credit every homeowner can claim on a principal residence under Amendment 79. The credit rises to up to $600 beginning with 2026 tax bills, up from $500. You apply for it with your county assessor.

### Can a surviving spouse claim the Arkansas exemption?

Yes, in many cases. The surviving spouse and minor dependent children of a veteran who died from a service-connected cause can be exempt, and the surviving spouse keeps the exemption while unmarried. Confirm the conditions with your county collector.

Property tax rules and dollar amounts change from year to year, and your situation may have details a general guide cannot cover. Please consult a tax professional or attorney before making decisions based on this exemption, and verify the current rules and amounts with your county collector and the State of Arkansas before you file.

_This content is for informational purposes. Consult a professional for personal financial decisions._