Disabled Veteran Benefits in Arkansas

Under Arkansas Code 26-3-306, a qualifying disabled veteran is exempt from all state taxes on the homestead and personal property. Arkansas counts automobiles, pickups and other vehicles as personal property, assessed with the county every year, so the exemption reaches past the house.

The law covers a disabled veteran awarded VA special monthly compensation for the loss, or loss of use, of one or more limbs, for total blindness in one or both eyes, or for a service-connected 100% total and permanent disability. A lower rating is not on that list. When the veteran dies, the exemption continues for the surviving spouse, as long as the spouse stays unmarried, and for minor dependent children.

You apply at your county collector's office, not with the state. If you do not qualify, Arkansas homeowners may still receive a homestead tax credit of up to $500 a year, rising to up to $600 beginning with the 2026 tax bills. You apply for that one with the county assessor. Property taxes are due October 15 each year.

Arkansas has an income tax, but the money most disabled veterans live on is outside it. The state's own tax booklet lists VA benefits as exempt income, alongside Social Security.

Military retirement pay is exempt as well. Act 141 of 2017 took retirement benefits received by a member of the uniformed services out of income tax starting with tax year 2018. Active-duty pay has been exempt since tax year 2014.

One catch for retirees with a second pension. Arkansas exempts the first $6,000 of income from an employer-sponsored retirement plan. You cannot claim that $6,000 on a civilian pension if your military retirement exemption is already more than $6,000.

The Arkansas Heroes Scholarship is the state's answer for military families. It goes to undergraduates who are the spouse or dependent child of an Arkansas resident declared 100% totally and permanently disabled during, or as a result of, military service.

It provides assistance for in-state tuition, housing and mandatory fees at eligible Arkansas institutions, for eight semesters or until a degree, whichever comes first. The student must have been a legal Arkansas resident for at least a year before applying, and children must be under 26. A spouse loses eligibility on remarrying.

The scholarship sits on top of the VA's Chapter 35 benefit. For military dependents it pays the unpaid cost that remains after three months of Chapter 35 benefits are deducted from each semester's total, and the state asks for proof that you applied to the VA for Chapter 35. The state's annual deadline is July 1.

The Arkansas Game and Fish Commission sells Resident Disabled Military Veteran Lifetime licenses. If the VA certifies you as 100 percent totally and permanently disabled, the lifetime fishing license is $1.50, the lifetime hunting license is $1.50, and the combination is $3.00. With the combination you can add a lifetime waterfowl permit for $7.00 and a lifetime trout permit for $10.00.

A resident veteran rated 70% or higher, or 50% or higher with a Purple Heart, can buy a lifetime combination license and permit for $52.50. It carries hunting, fishing, trout and state duck stamp privileges.

Both tiers need VA certification of your disability and proof of one year of Arkansas residency. They are available from the commission's Little Rock office.

The discount is written into the state parks rules. United States citizens with a 100% permanent and total disability are admitted to state park campgrounds at discounted rates. The rule itself does not state the rate (it points to a fee directive that has been repealed), so ask the park when you book.

What the rule does spell out is the proof. A veteran can show a VA awards letter dated within the last two years, an Arkansas license plate beginning with DV or DAV, or a federal America the Beautiful Access Pass. The letter has to say permanent and total disability or 100% disabled.

A standard disabled parking plate or placard does not count as proof of 100% disability.

State agencies must give preference to qualified veterans, disabled veterans, spouses of disabled veterans and unmarried surviving spouses. It applies to hiring, promotion and retention.

Where an agency scores applicants numerically, a disabled veteran gets 10 points added to the final score. The disability must be established by VA records, and the policy sets no minimum percentage. Other veterans who receive a passing grade get 5 points.

You must be a citizen and resident of Arkansas, have qualifications substantially equal to the other applicants, and submit proof of your status yourself. Six years of honorable National Guard or Reserve service counts as veteran status here.

Arkansas runs two state veterans cemeteries, at North Little Rock and Birdeye. Interment is at no cost for the veteran, and it is $807 for a spouse or qualified dependent. That covers the gravesite, opening and closing of the grave, and perpetual care, with a government headstone or niche cover.

Any veteran discharged under conditions other than dishonorable is eligible, and no disability rating is needed. Gravesites cannot be reserved, but you can file a pre-eligibility application ahead of time.

The state also operates two State Veterans Homes, in Fayetteville and North Little Rock. The admission criteria are an honorable discharge and a medical need for nursing home placement; veterans, veterans' spouses and Gold Star parents may apply.