Arkansas veteran taxes

Military retired pay in Arkansas

Exempttax year 2025Sources 1, 2

Since tax year 2018, Arkansas exempts retirement benefits received by a member of the uniformed services from income tax (Act 141 of 2017). A retiree whose military retirement exemption exceeds $6,000 cannot also claim the separate $6,000 exemption for employer-sponsored plans or traditional IRA distributions; if it is less than $6,000, the remainder may be used for those distributions.

Survivor Benefit Plan annuities

ExemptSources 3, 4

Act 141 of 2017 exempts from Arkansas income tax survivor benefits that are funded by the retirement pay of a member of the uniformed services. The Arkansas Department of Veterans Affairs states that SBP, RCSBP and RSFPP survivor annuities are not taxed in Arkansas.

Property tax relief for disabled veterans

Exemption or creditSource 5

Ark. Code § 26-3-306, as the Arkansas Department of Veterans Affairs describes it, gives a full exemption from state taxes on the homestead and personal property of veterans rated 100% permanent and total, or receiving special monthly compensation for the loss or loss of use of limbs or for total blindness. The exemption is recertified annually, and the application is made at the local county collector’s office.

• Who: a service-connected 100% permanent and total rating, or special monthly compensation for the loss or loss of use of limbs or total blindness.
• What: all state taxes on the homestead and personal property.

Vehicle registration for disabled veterans

Fee waiver or discountSources 6, 7

The Department of Finance and Administration lists the Disabled Veteran License Plate as free for disabled veterans who qualify under Act 7 of 1949 or Act 30 of 1979, as certified by the Veterans Administration. An eligible veteran may receive one additional plate for $4.00, and one plate may be reissued to the surviving spouse for $4.00. The department’s page also says the veteran must be a 100% Non-Service Connected Disabled Veteran, so the rating rule is not stated clearly.

• Plate: Disabled Veteran License Plate (white background, red lettering), issued by the Specialty License Plate Office; Ark. Code § 27-24-203 per the Department of Veterans Affairs.
• Proof: a VA letter verifying eligibility under Act 7 of 1949 or Act 30 of 1979.