Arkansas Disabled Veteran Benefits: Property Tax, License Plates & More

If you are a disabled veteran living in Arkansas, the Natural State offers real help — from a full property tax exemption to cheap lifetime hunting licenses and college aid for your kids. Most of these benefits hinge on how the VA rates you, so knowing your rating and keeping paperwork current is the key to collecting what you have earned. This guide explains every major Arkansas benefit, who qualifies, and how to claim it — in plain English.

Property Tax Exemption: The Big One

The most valuable Arkansas benefit is a full exemption from all state property taxes on your home (your homestead) and your personal property. This is not a discount — if you qualify, you owe nothing.

You qualify if the VA has awarded you special monthly compensation for any of these:

• Loss of, or loss of use of, one or more limbs.
• Total blindness in one or both eyes.
• A service-connected 100% total and permanent disability.

The governing law is Arkansas Code Section 26-3-306. The exemption covers your homestead, your vehicle, and other tangible personal property you own. It passes to your surviving spouse and minor dependent children after you pass away, as long as your spouse stays unmarried.

How to claim it

1. Gather your VA Summary of Benefits letter; if it doesn't show when your disability became total and permanent, also pull the Rating Decision that lists that date.
2. Bring these to your local county collector's office — the exemption is granted at the county level, not by the state.
3. Ensure your name is on the deed or title and that you live in the home as your principal residence.
4. Re-file as your county requires — many counties ask for the paperwork again each year, often with an October 15 deadline.

No double-dipping: you cannot combine this exemption with the Amendment 79 homestead credit or the Over-65 property tax freeze. The full exemption is worth far more, so the choice is usually easy.

The rules keep improving for estate planning: homes held in a trust or limited liability company (LLC) can now qualify, with conditions tied to who created the trust and who owns the LLC. Confirm the details with your county collector.

Your Free Disabled Veteran License Plate

Arkansas issues a Disabled Veteran license plate at no cost, with renewal capped at $1 a year. A second plate for your household runs $4.

You qualify if you are an Arkansas citizen and resident, the VA has determined you are a service-connected disabled veteran, and you are either totally and permanently disabled or rated at least 30% disabled — and you own the vehicle (or the VA issued it to you). The law is Arkansas Code Section 27-24-203, and you must show a VA letter verifying eligibility.

Your surviving spouse can have the plate reissued (presenting your death certificate and a marriage license if they weren't already a joint owner). Note that bills to lower the eligibility threshold to 10% disability have been proposed but have not become law, so 30% is the mark that counts.

If your mobility is limited, ask your revenue office about the accessible parking placard or plate as well, so you pick up every privilege available to you.

Income Tax: Military Retirement and VA Pay

Arkansas does not tax military retirement pay — at all, with no dollar cap. Under Arkansas Code Section 26-51-307, the state also exempts:

• Survivor benefits funded by a service member's retired pay (such as an SBP annuity for your spouse).
• VA disability compensation — exempt from state tax just as it is federally.
• Active-duty pay.

One nuance: military disability retirement pay is handled differently from a length-of-service pension. It is exempt only when it qualifies under federal law (Internal Revenue Code Section 104) as compensation for injury or sickness from service; otherwise it falls under the general $6,000 retirement income exemption. If that applies to you, confirm the treatment with the Arkansas Department of Finance and Administration or a preparer who works with veterans.

Hunting, Fishing & State Parks

If you are rated 100% total and permanent, you can buy lifetime hunting and fishing licenses for a one-time fee of $1.50 each — a lifetime combination license covering both is $3 (lifetime waterfowl $7, trout $10). Buy once, never pay again. You need VA certification of a 100% total and permanent disability plus one year of Arkansas residency, and you purchase them through the Arkansas Game and Fish Commission.

Rated lower? You can buy a Resident Disabled Military Veteran Lifetime Combination License for $52.50 if you are rated 70% or higher, or 50% or higher with a Purple Heart.

Entry to almost every Arkansas state park is free (Crater of Diamonds is the exception, since entry includes the diamond-search field). And if you are rated 100% total and permanent, you get 50% off standard campsite fees at every state park, year round. Prove eligibility with a VA award letter dated within the last two years or a plate carrying the DV or DAV designation. The discount covers campsites, not cabins or other rental lodging.

College: The Arkansas Heroes Scholarship

If you are rated 100% total and permanent because of your service, your spouse and dependent children may qualify for the Arkansas Heroes Scholarship. It covers in-state tuition, mandatory fees, and on-campus housing at approved public and private Arkansas colleges — as a reimbursement that pays the balance left after federal benefits such as Chapter 35 Dependents' Educational Assistance (DEA) are applied.

Eligibility also extends to dependents of service members killed in action, missing in action, prisoners of war, killed on ordnance delivery, or who received the Medal of Honor or Purple Heart.

• Funding runs for eight semesters, or until the degree, whichever comes first.
• Dependent children must be under 26 to qualify and keep the funding.
• A surviving spouse loses eligibility if they remarry.
• Students need one year of Arkansas residency, a 2.0 GPA, and full-time enrollment of 12 credit hours or more.

Apply through the Arkansas Division of Higher Education (ADHE), and file early — the scholarship deadline is July 1, with the Chapter 35 application due by June 15.

In-State Tuition (even if you just moved)

Arkansas law requires state-supported colleges and trade schools to charge resident tuition rates to a veteran honorably discharged from at least 90 days of active duty within the prior three years, and to that veteran's dependents. Federal law goes further, requiring any public institution to charge resident rates to a veteran or dependent using VA education benefits, with no time limit since discharge.

Jobs, Vehicles, Homes & Cemeteries

Veterans Hiring Preference

Arkansas adds bonus points to a qualifying veteran's examination score for state agency and school district jobs:

• 10 points for a VA-established service-connected disability — with no minimum rating.
• 5 points for honorably discharged veterans, and Reserve or Guard members with six or more years of honorable service.

The spouse of a veteran whose service-connected disability keeps them from being selected, and the unmarried surviving spouse of a deceased veteran, can also qualify. Arkansas also grants automatic occupational licensure to service members stationed in the state, veterans who move here, and their spouses, when you already hold a similar license in good standing elsewhere — and deployment pushes a license expiration back 180 days.

Vehicle Purchase Tax Relief

You pay no sales tax on specially adapted vehicles or equipment bought with VA financial assistance — an official VA letter is your proof at purchase. Separately, if you are blinded by a service-connected injury, you owe no Arkansas gross receipts tax on one new automobile every two years (new passenger cars and pickups; confirm details with the Department of Finance and Administration).

Veterans Homes and Cemeteries

Arkansas runs two state veterans homes (Fayetteville and North Little Rock) offering skilled nursing, rehabilitation, hospice, and respite care for eligible veterans and spouses; veterans rated 70% or higher receive admission priority. For burial, two state veterans cemeteries (North Little Rock and Birdeye) provide free interment for eligible veterans — including the gravesite, opening and closing, perpetual care, a vault, and a government headstone. Spouses and certain dependents can also be interred at a modest cost, and a VA national cemetery remains an option.

If Your Spouse Survives You

Arkansas's help carries over by design. Your property tax exemption transfers to your surviving spouse (while they stay unmarried and keep living in the home), your family may use the Arkansas Heroes Scholarship, your military survivor benefit annuity is exempt from state income tax, and your spouse can have your Disabled Veteran plate reissued. Family members may also be entitled to federal Dependency and Indemnity Compensation (DIC), a monthly tax-free payment when a veteran's death was service-connected — worth filing for even if you're not certain you qualify.

Frequently Asked Questions

Do 100% disabled veterans pay property tax in Arkansas?

No. Rated 100% total and permanent (or receiving special monthly compensation for loss of a limb or blindness), you are exempt from all Arkansas state taxes on your homestead and personal property — once you apply at your county collector's office and keep the paperwork current.

Is the Disabled Veteran license plate free?

Yes. The first plate is free with a $1 annual renewal and a $4 second plate, for service-connected veterans rated at least 30% or totally and permanently disabled.

Does Arkansas tax my military retirement?

No. Military retirement pay is fully exempt from Arkansas income tax with no dollar cap, and VA disability compensation is also exempt.

Do my kids get free college in Arkansas?

If you are rated 100% total and permanent, your spouse and dependent children under 26 can qualify for the Arkansas Heroes Scholarship covering in-state tuition, mandatory fees, and on-campus housing.

Your Next Steps

Do not leave any of this on the table. Your VA Summary of Benefits letter is the key that unlocks most of it:

1. Get your VA Summary of Benefits letter if you don't have a current one — online through your VA account, or by calling the VA.
2. Visit your local county collector to apply for the property tax exemption and the Disabled Veteran license plate in one trip. Bring your VA letter and vehicle title.
3. Buy your lifetime hunting and fishing licenses through the AGFC if you're 100% total and permanent — a once-in-a-lifetime $1.50 to $3 purchase.
4. Apply early for the Arkansas Heroes Scholarship if a spouse or child is heading to college; note the July 1 deadline.
5. Identify yourself as a veteran when applying for a state job — and mention your service-connected disability for the 10-point hiring preference.

Arkansas has built a strong safety net for those who served. Know your rating, keep paperwork current, and file at the right office, and you can collect it. When in doubt, a local Veteran Service Officer (VSO) will walk you through the forms at no cost.