Updated August 2026
Arizona Veteran Benefits 2026
Sun, service, and the Grand Canyon State’s thanks — here’s what Arizona offers.
Arizona is one of the country’s biggest military-retiree states, and its benefits show it. Here’s what you’ve earned — verified line by line against Arizona statutes and agency pages.
Arizona Highlights
- Full military retirement pay tax exemption
- Property tax exemption for disabled veterans
- No vehicle license tax or registration fee for 100% disabled veterans (one vehicle)
- Free state park day-use pass at 100% disability; 50% off for other veterans & military
- Complimentary lifetime hunt & fish license for permanent 100% disabled veterans
- Tuition waiver at state universities & community colleges (Purple Heart & Gold Star families)
- State veterans homes
Income Tax Treatment
Arizona has a state income tax.
Military Retirement Pay: Arizona has fully exempted military retirement pay from state income tax since tax year 2021, with no dollar cap.
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 Disabled Veterans in Arizona
Type: Graduated by disability rating
As of tax year 2026, Arizona fully exempts the primary residence of a veteran with a 100% VA service-connected disability rating; veterans rated below 100% get a partial exemption equal to their disability percentage applied to a capped assessed-value amount, subject to income and home-value limits.
| VA disability rating / category | What you get |
|---|---|
| 100% service-connected | FULL exemption of the primary residence from property tax (new under HB2792, effective for TY2026). No income or property-value cap for this tier.Must be a 100% VA service-connected disability rating on the veteran's primary residence; jointly owned home with a spouse is treated as solely owned by the veteran. |
| Below 100% (e.g., 10%-99%) service-connected or non-service-connected disability | Partial exemption: the maximum exemption amount of assessed value (approx. $4,873 for 2026) multiplied by the VA disability percentage, subtracted from assessed valuation. Example: a 50%-rated veteran gets ~$2,436 of assessed value exempted.For TY2026 the veteran's total Arizona property assessed value (Limited Property Value) must not exceed roughly $36,865, and household income must be under roughly $39,865 (or ~$47,826 with minor children); VA disability compensation, Social Security, and Railroad Retirement are excluded from the income count. These limits adjust annually. |
- Income limit: Yes for the partial (below-100%) tier: roughly $39,865/yr (or ~$47,826 with minor dependents) for TY2026, excluding VA/SSA/RR income. NO income limit for the 100%-rated full exemption. Note: all income limits for this program are scheduled to be eliminated beginning tax year 2027.
- Age requirement: None.
- Surviving spouse: A surviving spouse of a 100%-disabled veteran may continue the full exemption as long as they do not remarry and occupy the home as their primary residence. Arizona also has a separate widow/widower exemption (same prorated framework and limits) independent of the veteran benefit.
- Counts being paid at 100% via unemployability (TDIU)? Varies / not explicitly addressed — confirm with the assessor or state VA
Source: Ariz. Const. art. IX, sec. 2 / 2.3; A.R.S. 42-11111; HB2792 (2026) and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the Arizona Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.
Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.
Vehicle & Registration Benefits
No vehicle license tax or registration fee — 100% disabled veterans: Under A.R.S. § 28-5802, Arizona collects no vehicle license tax (VLT) and no registration fee from a veteran — including a veteran who co-owns the vehicle with another party — who is “certified by the United States department of veterans affairs as having a one hundred percent disability and drawing compensation on that basis.” The exemption covers one vehicle (or its replacement) at a time, and ADOT MVD confirms it transfers to a replacement vehicle when you register it — see the ADOT MVD resident exemptions page. A surviving spouse keeps the one-vehicle exemption until remarriage or death. Note the statute keys eligibility to a VA certification of 100% disability with compensation paid on that basis — if you are paid at the 100% rate through individual unemployability (TDIU) rather than a schedular 100% rating, confirm with MVD before relying on it.
VA auto-grant vehicles: A vehicle (or its replacement) “acquired by financial aid from the United States department of veterans affairs” — a VA automobile grant — is also exempt from vehicle license tax and registration fees under A.R.S. § 28-5802, one vehicle at a time, for a veteran residing in Arizona.
Purple Heart recipients: A.R.S. § 28-5802 further waives the vehicle license tax and registration fee for an honorably discharged veteran who submits satisfactory proof of being a bona fide Purple Heart medal recipient, limited to one vehicle.
Veteran special plates: Under A.R.S. § 28-2414, MVD issues Veteran special plates (including a motorcycle version) to anyone who submits satisfactory proof of being a veteran — and to immediate family members of a person issued the plate. The special-plate fee is $25 (under A.R.S. § 28-2402: $8 is a plate administration fee and $17 is an annual donation to the veterans’ donations fund established by A.R.S. § 41-608). The plate can be combined with a personalized plate for an additional fee. The special-plate fee is separate from the VLT/registration exemption above.
Active duty stationed in Arizona (nonresidents): ADOT MVD exempts nonresident active-duty military personnel (and public health service officers) stationed in Arizona from the vehicle license tax portion of registration — submit an affidavit for VLT exemption certified by your commanding officer, or a military Leave and Earnings Statement (LES).
Recreation: Parks, Hunting & Fishing
Free state park day-use pass — 100% disabled veterans: Arizona State Parks issues a “100 percent free day-use pass” to veterans with a 100% service-connected disability — bring VA-certified proof of the rating to a park visitor center (or the Central Phoenix office; partner parks excluded) to receive your pass. The pass is non-transferable, covers day entry only, and the pass holder must accompany guests — discounts extend to up to three accompanied adults. It does not cover tours at Kartchner Caverns or Riordan Mansion, special-use/program/event fees, reservation fees, camping, or overnight parking. Details: Arizona State Parks veteran & military discounts.
50% off day use — other veterans, active duty, Guard & reserves: Retired veterans and veterans with a service-connected disability rated below 100% get 50% off day-use entrance, as do active-duty, reserve, and National Guard members — show your military ID at the gate.
Complimentary hunt & fish license — permanent 100% disabled veterans: Under A.R.S. § 17-333(C)(2), a veteran who has been an Arizona resident for one year or more immediately before applying and who “receives compensation from the United States government for a permanent service-connected disability rated as one hundred percent disabling” gets a complimentary license from Arizona Game & Fish. Under Commission rule R12-4-202 (effective July 1, 2026), the license grants all the privileges of a combination hunting and fishing license and is issued only at a Department office. If your VA letter shows the 100% rating is permanent and will not be reevaluated, the license is valid for life; if the rating will be reevaluated in three years, it expires three years from issuance. A lifetime license stays valid if you later move out of state (nonresident fees then apply to tags and stamps). Hunt permit-tags and stamps are purchased separately. Bring a DD-214, the AZGFD certification form, or a VA benefits letter — see the AZGFD Disabled Veteran License page.
Reduced-fee licenses — any service-connected rating & Purple Heart: A.R.S. § 17-333(C)(3) provides a license at up to 25% off the full license fee for a veteran who has been an Arizona resident for one year and receives U.S.-government compensation for a service-connected disability at any rating (valid one year). Under § 17-333(C)(4), a resident (one year) who proves they are a bona fide Purple Heart medal recipient pays half the full license fee. Both reduced-fee licenses also carry full combination hunt-and-fish privileges under rule R12-4-202.
Education & Other Arizona Benefits
Tuition waiver scholarship (A.R.S. § 15-1808): Arizona waives tuition at any university under Arizona Board of Regents jurisdiction and at Arizona community colleges for several groups under A.R.S. § 15-1808: Purple Heart recipients of the U.S. armed forces with a VA disability rating of 50% or more who were Arizona residents or stationed in Arizona at the time of the injury that resulted in the Purple Heart citation (a class 1–5 felony conviction disqualifies); Arizona National Guard members who received a Purple Heart citation on or after September 11, 2001, or were medically discharged due to an injury or disability suffered in qualifying duty status; and children (30 or younger) and un-remarried spouses of service members — including National Guard members — killed in the line of duty or who died from line-of-duty injuries (the deceased must have been an Arizona resident or stationed in Arizona). Children and spouses of Arizona-resident veterans who suffered a line-of-duty post-traumatic stress injury and died by suicide also qualify. Dependent waivers are capped at 64 credit hours at community colleges and, at universities, total credits equal to a baccalaureate degree. Apply through the Arizona Department of Veterans’ Services.
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.