Updated January 2026
Arizona Veteran Benefits 2026
Arizona offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in AZ for 2026.
Arizona Highlights
- Partial military retirement exemption ($3,500)
- Property tax exemption for disabled veterans
- Free vehicle license plates for disabled veterans
- State veterans homes
Income Tax Treatment
Arizona has a state income tax.
Military Retirement Pay: Arizona exempts up to $3,500 of military retirement pay from state income tax.
Active Duty Pay: Active duty pay earned outside Arizona may be exempt.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Arizona does not tax VA disability payments.
Property Tax Exemption for Veterans
100% P&T disabled veterans may receive property tax exemption up to $28,459 of assessed value.
Maximum Benefit: Up to $28,459 assessed value
To apply for property tax exemptions in Arizona, contact your county assessor's office or the Arizona Department of Veterans Affairs. You will typically need your VA disability rating letter and proof of residence.
VA Healthcare in Arizona
Arizona has approximately 3 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.