Arizona Veteran Benefits: State Benefits Guide

• For tax year 2026 the primary residence of a veteran with a service-connected disability rated 100 percent is fully exempt. For tax year 2026 an income limit also applies ($39,865, or $47,826 with minor children, as county assessors publish). From tax year 2027 a veteran paid at the 100 percent rate through individual unemployability also qualifies (Laws 2026, ch. 140). The statute counts a home owned jointly with the veteran’s spouse as owned by the veteran. Arizona disabled veteran property tax exemption: amounts, rating table and calculator.

  “The primary residence of a veteran with a service-connected disability whose disability rating by the United States department of veterans affairs is one hundred percent is fully exempt from taxation.” (A.R.S. 42-11111(C) as amended by Laws 2026, ch. 2 (tax year 2026))

• Below 100 percent: the statutory base of $4,188 multiplied by the VA rating. A.R.S. 42-11111(F) indexes the base every year (GDP price deflator); the 2026 indexed amount is not confirmed from the Department of Revenue. The Mohave and Cochise county assessors publish $4,873 for tax year 2026; see the Arizona guide. A veteran with a nonservice-connected disability rated 100 percent or less also gets the base amount times the rating. Compare every state’s rule in the disabled veteran property tax exemption guide.

  “The property of a veteran with a nonservice-connected disability whose disability rating by the United States department of veterans affairs is one hundred percent or less or with a service-connected disability whose disability rating by the United States department of veterans affairs is less than one hundred percent is exempt in the amount of $4,188.” (A.R.S. 42-11111(D) as amended by Laws 2026, ch. 2 (tax year 2026))

• For tax year 2026 the surviving spouse of a veteran whose primary residence was receiving the full exemption keeps it on the spouse’s primary residence as long as the spouse does not remarry; there is no spouse branch for a lower-rated veteran. From tax year 2027 that spouse’s primary residence is fully exempt, and the spouse of a lower-rated veteran gets the statutory base times the veteran’s rating.

  “The surviving spouse of a veteran whose primary residence is receiving the exemption under this subsection may continue to claim the full exemption for the surviving spouse's primary residence as long as the surviving spouse does not remarry.” (A.R.S. 42-11111(C) as amended by Laws 2026, ch. 2 (tax year 2026))

• The income limit: For tax year 2026 an income limit applies to every exemption (county-published: $39,865, or $47,826 with minor children in the home). From tax year 2027 the income limit applies only to the separate widow and disabled-person exemption.

  “Pursuant to article IX, section 2, subsection F, Constitution of Arizona, to qualify for an exemption under this section, the total income from all sources of the claimant and the claimant's spouse and the income from all sources of all of the claimant's children who resided with the claimant in the claimant's residence in the year immediately preceding the year for which the claimant applies for the exemption shall not exceed” (A.R.S. 42-11111(H) as amended by Laws 2026, ch. 2 (tax year 2026))

• You claim the exemption by filing an affidavit with the county assessor when you first apply. For tax year 2026 you also check your income each year and tell the assessor in writing of any event that ends your eligibility.

  “A widow or widower, a person with a total and permanent disability or a veteran with a disability shall establish eligibility for exemption under this section by filing an affidavit with the county assessor under section 42-11152 when initially claiming the exemption.” (A.R.S. 42-11111(K) as amended by Laws 2026, ch. 2 (tax year 2026))

• For this section a veteran is a person discharged, separated or released under honorable conditions from active or inactive service in the uniformed services, including the regular, reserve and National Guard components.

  “"Veteran" means an individual who has served in, and been discharged, separated or released under honorable conditions from, active or inactive service in the uniformed services of the United States” (A.R.S. 42-11111, definition of “veteran” (same words in the Laws 2026, ch. 140 text, (O)(6), and in the tax year 2026 text, (N)(5)))

• From tax year 2027 a veteran whose disability status is total disability based on individual unemployability also qualifies for the full exemption, surviving spouses get their own branches in subsections F and G, and the income limit applies only to the exemption for widows, widowers and totally and permanently disabled persons.

  “The primary residence of a veteran with a service-connected disability whose disability rating by the United States department of veterans affairs is one hundred percent or whose disability status is total disability based on individual unemployability is fully exempt from taxation.” (A.R.S. 42-11111(C) as amended by Laws 2026, ch. 140 (applies from tax year 2027))

• The 2026 laws that changed this section are Laws 2026, ch. 2 (HB 2792, signed February 12, 2026), ch. 82 (HB 2120, signed June 4, 2026) and ch. 140 (HB 4168, signed June 13, 2026). Chapter 140 applies from tax year 2027, and the indexed 2027 amounts are not yet published.

  “Section 42-11111, Arizona Revised Statutes, as amended by this act, applies to tax years beginning from and after December 31, 2026.” (Laws 2026, ch. 140 (HB 4168), section 34(B), approved June 13, 2026 (applies from tax year 2027))

• Retired or retainer pay of the uniformed services: 100% subtraction. The subtraction for tax years after 2020 is the full amount; it was capped at $2,500, then $3,500, before that. See how every state taxes military retired pay.

  “For taxable years beginning from and after December 31, 2020, the full amount received.” (A.R.S. 43-1022(26)(c))

• Pay for active service as a member of the Armed Forces reserves, the National Guard or the armed forces is also subtracted, to the extent it is not already excluded from income, including combat zone pay.

  “To the extent not already excluded from Arizona gross income under the internal revenue code, compensation received for active service as a member of the reserves, the national guard or the armed forces of the United States, including compensation for service in a combat zone as determined under section 112 of the internal revenue code.” (A.R.S. 43-1022(11))

• The spouses of military veterans tuition scholarship goes to the spouse of an honorably discharged veteran (or one with a general discharge under honorable conditions, which the Department of Veterans’ Services verifies). It does not depend on a VA rating.

  “Is the spouse of an honorably discharged veteran of the armed forces of the United States.” (A.R.S. 15-1809(A)(2))

• The spouse must enroll at an Arizona board of regents university or an Arizona community college, be an Arizona resident entitled to in-state student classification, and file the FAFSA every year the scholarship is received.

  “Completes and submits the free application for federal student aid for each year that the person receives a tuition scholarship under this section.” (A.R.S. 15-1809(A)(5))

• The scholarship equals tuition and mandatory fees minus any federal aid scholarships, public grants and other gifts, grants or aid, and it is subject to available money.

  “Subject to available monies, the Arizona board of regents shall award an eligible person a tuition scholarship that is equal to the amount of tuition and mandatory fees charged by the university or community college in which the person is enrolled, reduced by the amount of any federal aid scholarships or public grants and any other financial gifts, grants or aid received by that person.” (A.R.S. 15-1809(B))

• It is limited to four academic years or eight semesters and to a certificate, associate degree or bachelor’s degree.

  “Limited to not more than four academic years or eight semesters.” (A.R.S. 15-1809(C)(1))

• Awards go out first-come, first-served, and when the fund runs out no award is made. Tuition programs for a veteran’s children or for the veteran personally are not confirmed here.

  “Tuition scholarships under this section shall be awarded on a first-come, first-served basis.” (A.R.S. 15-1809(D))

• The registering officer does not collect the vehicle license tax or the registration fee for a veteran’s personally owned vehicle (or one the veteran co-owns) if the VA certifies the veteran as 100 percent disabled and the veteran is drawing compensation on that basis. The statute names only the vehicle license tax and the registration fee, not a title fee or sales tax.

  “A veteran for a personally owned vehicle or a veteran and another party owning a vehicle if the veteran is certified by the United States department of veterans affairs as having a one hundred percent disability and drawing compensation on that basis.” (A.R.S. 28-5802(A)(2))

• A separate branch, 28-5802(A)(1), covers a vehicle (or its replacement) a veteran residing in Arizona acquired with VA financial aid under the federal laws the statute lists; it has no disability rating test and is limited to the vehicle bought that way.

  “A veteran residing in this state for a vehicle or any replacement of the vehicle acquired by financial aid from the United States department of veterans affairs pursuant to Public Laws 79-663, 85-56, 85-857, 90-77, 91-666 and 93-538; 38 United States Code sections 1901 through 1988.” (A.R.S. 28-5802(A)(1))

• The surviving spouse keeps the exemption until remarriage or death.

  “The exemption provided by this paragraph applies to a surviving spouse of the veteran with a disability until the surviving spouse's remarriage or death.” (A.R.S. 28-5802(A)(2))

• The exemption covers only one vehicle (or its replacement), and the veteran must show VA proof at initial registration.

  “The veteran may claim and be granted an exemption and the surviving spouse may renew the registration pursuant to the terms of the exemption provided to the veteran for only one vehicle or any replacement of the vehicle owned by the veteran or the surviving spouse until the surviving spouse's remarriage or death.” (A.R.S. 28-5802(B))

• A veteran who is a Purple Heart recipient and was honorably discharged has a separate exemption from the vehicle license tax and registration fee for one vehicle, with no disability rating needed.

  “1. The veteran is a bona fide purple heart medal recipient. 2. The veteran was honorably discharged from the United States military.” (A.R.S. 28-5802(C)(1)-(2))

• The Department of Transportation’s own page says the same in plain terms: a veteran owning or co-owning a vehicle is exempt if certified by the VA as 100 percent disabled and drawing compensation on that basis (Internet Archive copy, July 14, 2025).

  “A veteran owning or co-owning a vehicle is exempt from payment of vehicle license tax or registration fee, if the veteran is certified by the Department of Veterans Affairs to be 100 percent disabled and drawing compensation on that basis.” (Arizona DOT, Resident Exemptions (Internet Archive capture of July 14, 2025))

• The statute says the Game and Fish Commission may reduce fees and issue complimentary licenses; it does not say it must. The categories below are the ones the statute lists.

  “The commission may reduce the fees for licenses and issue complimentary licenses” (A.R.S. 17-333(C))

• A complimentary license is listed for a veteran who has lived in Arizona for one year or more before applying and receives VA compensation for a permanent service-connected disability rated 100 percent disabling.

  “A complimentary license to a veteran of the armed forces of the United States who has been a resident of this state for one year or more immediately before applying for the license and who receives compensation from the United States government for a permanent service-connected disability rated as one hundred percent disabling.” (A.R.S. 17-333(C)(2))

• A reduced-fee license of up to twenty-five percent less than the full fee is listed for a veteran with one year of Arizona residency who receives VA compensation for any service-connected disability.

  “A license for a reduced fee of up to twenty-five percent less than the full license fee to a veteran of the United States armed forces who has been a resident of this state for one year or more immediately before applying for the license and who receives compensation from the United States government for a service-connected disability.” (A.R.S. 17-333(C)(3))

• A Purple Heart recipient with one year of Arizona residency is listed for a license at one-half of the full fee.

  “A license for a reduced fee that is one-half of the full license fee to a person who has been a resident of this state for one year or more immediately before applying for the license and who submits satisfactory proof to the department that the person is a veteran and a bona fide purple heart medal recipient.” (A.R.S. 17-333(C)(4))

• SB 1155 (2026) proposed free licenses for any service-connected rating but was held in committee; current 17-333 is unchanged. In the complimentary license paragraph the bill would delete the words “permanent” and “rated as one hundred percent disabling”, and it would delete the reduced-fee paragraph quoted here, so that any veteran drawing VA compensation for a service-connected disability would qualify.

  “A license for a reduced fee of up to twenty-five percent less than the full license fee to a veteran of the United States armed forces who has been a resident of this state for one year or more immediately before applying for the license and who receives compensation from the United States government for a service-connected disability.” (SB 1155 (2026), section 1, as introduced (the paragraph the bill would delete, A.R.S. 17-333(C)(3)))

• The Legislature’s bill status for SB 1155 shows the final disposition as held in committee (checked October 30, 2026). The actual license fees and license terms are set by Game and Fish Commission rule and are not confirmed here; check the Department before applying.

  “Final disposition: Held in Committees.” (Arizona Legislature bill status for SB 1155, https://apps.azleg.gov/BillStatus/BillOverview/83938 (checked October 30, 2026))

• A veteran separated under honorable conditions after more than six months of active duty gets five points added to an examination grade for a job with the state or a political subdivision under a merit system.

  “A veteran of the armed forces of the United States who is separated from the armed forces under honorable conditions following more than six months of active duty and who takes an examination for employment by this state or any political subdivision of this state under a merit system of employment as provided by section 38-491, in the determination of the veteran's final rating on the examination, shall be given a preference of five points over persons other than veterans.” (A.R.S. 38-492(A))

• The points are added only if the veteran earns a passing grade without them.

  “The preference shall be added to the grade earned by the veteran, but only if the veteran earns a passing grade without preference.” (A.R.S. 38-492(A))

• A veteran with a service-connected disability, or receiving VA or military disability compensation or retirement benefits, gets 10 points instead of five. No one gets more than 10 points. Spouses and surviving spouses of some veterans have their own five-point branch in subsection D, which this page does not summarize.

  “An honorably separated veteran who served on active duty in the armed forces at any time and who has a service-connected disability or is receiving compensation or disability retirement benefits under laws administered by the United States department of veterans affairs, army, navy, air force, coast guard or United States public health service shall be given a ten point preference pursuant to this section.” (A.R.S. 38-492(E), (G))

• The Department of Veterans’ Services may build and operate veterans’ home facilities in Arizona. Admission rules and fees are set by the department and are not restated here.

  “Acquire property for and construct and operate veterans' home facilities in this state.” (A.R.S. 41-603(C)(1))

• The department may also establish and operate veterans cemeteries. Eligibility and fees are not restated here.

  “Acquire property for and establish and operate cemeteries for veterans in this state.” (A.R.S. 41-603(C)(2))

• Burial in a state veterans cemetery for Arizona National Guard and U.S. armed forces Reserve members whose service ended under honorable conditions depends on a legislative appropriation.

  “Subject to legislative appropriation and as authorized by the burial equity for guards and reserves act (P.L. 117-103; 136 Stat. 1109), provide burial services in state veterans' cemeteries for members of the Arizona national guard and the United States armed forces reserves if the member's service was terminated under honorable conditions.” (A.R.S. 41-603(C)(4))

• As of October 30, 2026, no Arizona Department of Veterans’ Services program page is used as a source here, so State Veteran Home admission rules, cemetery eligibility and fees, and the application steps for each benefit are not confirmed. Check dvs.az.gov.
• The Department of Revenue’s own 2026 indexed amount of the partial property tax exemption is not confirmed here. The Mohave and Cochise county assessors publish $4,873 for tax year 2026; see the Arizona disabled veteran property tax page. The 2027 amounts are not yet published.
• Whether Arizona taxes VA disability compensation is not confirmed here: the statutes reviewed do not address it, so this page makes no statement.
• Veteran license plates and plate fees, state park discounts, and county or city veteran programs are not confirmed here; check the Department of Transportation Motor Vehicle Division for plates.
• Current Game and Fish license fees and license terms, which the Commission sets by rule, are not confirmed here. SB 1155 (2026), which proposed free licenses for any service-connected rating, was held in committee.
• Tuition programs for a veteran’s children or for the veteran personally are not confirmed here; only the spouse scholarship in A.R.S. 15-1809 is covered.

Federal VA compensation is separate. For monthly VA pay by rating see the VA disability pay chart 2026.

• Arizona disabled veteran property tax exemption – amounts, rating table and calculator
• Disabled veteran property tax exemption by state – all 50 states compared
• States that tax military retirement – every state’s rule for retired pay
• VA disability pay chart 2026 – federal monthly VA compensation by rating
• VA benefits by disability rating – what each rating unlocks
• VA disability calculator – combined rating and monthly compensation

• Texas veteran benefits – Hazlewood tuition, plates, hunting and state parks
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• California veteran benefits – property tax exemptions, College Fee Waiver and CalVet
• Virginia veteran benefits – property tax, VMSDEP tuition, plates and licenses
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