What benefits do veterans get in Arkansas?
By Kyle Melvin · NMLS #1486450 · REV Mortgage · Licensed in Arkansas ·
Short answer
Arkansas exempts the homestead of a veteran with a 100% permanent and total service-connected disability, or with service-connected loss of limbs or blindness, from all property tax under A.C.A. § 26-3-306 — the entire bill, not a capped amount — and the exemption continues for an un-remarried surviving spouse and dependent children. Arkansas also exempts military retirement pay from state income tax. There is no partial exemption for lower ratings and no state veteran mortgage program; the benefits stack on an ordinary VA loan in one of the least expensive housing markets on this site.
- State
- Arkansas
- State loan program
- None — federal VA loan only
- Installations covered
- Little Rock Air Force Base
- Licensing
- Kyle Melvin is licensed in Arkansas
Arkansas's benefit is simple and strong: a veteran with a 100% permanent and total disability, or with service-connected loss of limbs or blindness, pays no property tax on the homestead. There is no cap on the home's value, no income test, and the exemption continues for a surviving spouse. Arkansas also does not tax military retirement pay. There is no partial benefit for lower ratings and no state loan program, and housing around Little Rock Air Force Base is among the least expensive on this site.
The homestead exemption
A.C.A. § 26-3-306 exempts from all state, county, city and school district taxes the homestead and personal property of a veteran who has been rated by VA as:
- Permanently and totally disabled from a service-connected cause, or
- Having lost or lost the use of one or more limbs from a service-connected cause, or
- Totally blind in one or both eyes from a service-connected cause.
The features that matter:
- Scope. The homestead — the home you own and occupy as your principal residence — plus the personal property associated with it. Not a second home or a rental.
- No value cap and no income test. Unlike Tennessee's capped relief or Arizona's limited exemption, Arkansas's is the entire bill regardless of the home's value.
- Surviving spouse and children. An un-remarried surviving spouse continues to receive the exemption. Dependent children receive it while they are minors. A surviving spouse who remarries loses it, with statutory provisions for restoring it if the later marriage ends.
- Application. With the county assessor, with the VA letter documenting the qualifying condition. Some counties require the letter annually; ask the assessor in your county.
Military retirement and other benefits
Arkansas exempts military retirement pay from state income tax under A.C.A. § 26-51-307, in full, following Act 141 of 2017. Every Arkansas homeowner also receives the general homestead property tax credit under § 26-26-1118, which reduces the bill by a fixed amount and is separate from the veteran exemption; a 100%-rated veteran's bill is already zero, so the credit matters for everyone else.
Arkansas veteran benefits at a glance
| Benefit | Authority | Who qualifies | Effect |
|---|---|---|---|
| Disabled veteran homestead exemption | A.C.A. § 26-3-306 | 100% P&T, loss of limbs, or blindness (service-connected) | Homestead fully exempt — bill goes to zero |
| Surviving spouse and children | § 26-3-306 | Un-remarried surviving spouse; dependent minor children | Exemption continues |
| Military retirement income tax exemption | A.C.A. § 26-51-307 | Military retirees | Retirement pay exempt from state income tax |
| Homestead tax credit | A.C.A. § 26-26-1118 | Every owner-occupant | Fixed credit against the bill |
| VA loan | Federal | Any eligible veteran or service member | No down payment, no mortgage insurance; funding fee waived with a compensable rating |
What it does to a payment
The lender escrows on the current bill until the county assessor processes the exemption; expect the un-exempted payment for the first months after closing, then a re-analysis. Once applied, the property tax portion of the payment is zero on the homestead. Arkansas's property tax rates are low by national standards, so the dollar effect is smaller than the same exemption would be in Texas or Illinois — but the payment becomes principal, interest and insurance only.
For veterans rated below 100%
There is no state property tax benefit below the qualifying conditions, and no state mortgage program. What remains is the full federal benefit: the VA loan guidelines, the funding fee exemption at any compensable rating, and full entitlement's absence of a loan limit — rarely the constraint at central Arkansas prices. If you are arriving at Little Rock AFB on orders, the PCS Home Buying Guide has the timeline, and the Little Rock AFB guide covers the Jacksonville–Cabot corridor.
Arkansas base guides
Questions people also ask
- Do 100% disabled veterans pay property taxes in Arkansas?
- No, not on their homestead. A veteran rated 100% permanent and total, or with service-connected loss of one or more limbs or total blindness, is exempt from all state, county, city and school district property taxes on the homestead and the personal property associated with it under A.C.A. § 26-3-306.
- Does the exemption pass to a surviving spouse?
- Yes. An un-remarried surviving spouse continues to receive the exemption, and so do dependent children of the veteran while they are minors. A surviving spouse who remarries loses it; a later divorce or death of the new spouse can restore it under the statute.
- Is there a benefit for veterans rated less than 100%?
- Not at the state level for property tax. Arkansas's exemption is all-or-nothing at 100% permanent and total, or the specific loss-of-limb and blindness conditions. Every Arkansas homeowner receives the general homestead tax credit, which is separate.
Apply with Kyle
Buying in Arkansas?
Kyle is licensed here and stacks the state benefits on the VA loan as part of the file, not as an afterthought. Start with your COE and the state you are moving to.