Arizona Veteran Benefits
Complete guide to state benefits for Arizona veterans in 2026
Arizona Military Retirement Tax
Arizona exempts up to $3,500 of military retirement income from state taxes. VA disability compensation is always tax-free under federal law.
Arizona Veteran Benefits Summary: Arizona offers military retirement exemption ($3,500), property tax exemptions for disabled veterans ($4,476 for 100% disabled), free hunting/fishing licenses for 100% disabled, and state employment preferences. Arizona has approximately 480,000 veterans.
State Income Tax
Military retirement: $3,500 exemption
VA disability: Tax-free (federal law)
Arizona has low income tax rates (2.5% flat rate).
Property Tax Exemptions
- 100% disabled: $4,476 exemption
- Widows/widowers: $1,719 exemption
- Surviving spouse: May continue exemption
Recreation Benefits
- 100% disabled: Free hunting/fishing license
- State parks: Discounts available
- Veteran ID card: Free from state
Employment Benefits
- Veterans' Preference: 5-10 points
- Disabled veteran: Additional preference
2026 BAH Rates for Arizona Bases
| Installation | E-5 w/Dep |
|---|---|
| Phoenix / Luke AFB | $2,019 |
| Tucson / Davis-Monthan | $1,662 |
| Yuma | $1,563 |