Arizona Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax

The state benefits Arizona gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.

Arizona fully exempts the primary residence of a veteran with a 100% service-connected VA disability rating; as amended by HB 2792 (Laws 2026, Ch. 2) for tax year 2026 onward, the full exemption is limited to the primary residence and a surviving spouse keeps it while living there and not remarried. Veterans rated below 100% get a partial exemption from assessed value, prorated by their rating and subject to the statute's income limits. All U.S. uniformed-services retired pay has been fully exempt from Arizona income tax since tax year 2021. (sources)

Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.

Property tax exemptions
Military retired pay tax
Other veteran benefits
Common questions

Property tax exemptions for veterans in Arizona

Arizona property tax benefits for veterans and surviving spouses (checked November 4, 2026)
Benefit	Who qualifies	Amount	How to apply	Source
Full property tax exemption on the primary residence for veterans with a 100% service-connected disability	Arizona resident veteran (honorable conditions) whose VA service-connected disability rating is 100%. A primary residence the veteran owns jointly with a spouse is treated as owned solely by the veteran. The surviving spouse may keep the full exemption on their primary residence while they live there and do not remarry. The statute's income test (subsection H, base $34,901, or $41,870 with minor or disabled children at home, indexed annually) is written to apply to 'an exemption under this section', which includes this one. Exemptions are mutually exclusive with the widow/widower and total-and-permanent-disability categories.	Full exemption (100% of property tax on the primary residence). The 'primary residence' wording and the joint-ownership rule apply to tax years beginning after December 31, 2025 (tax year 2026 onward).	File the exemption affidavit with the county assessor when first claiming (A.R.S. 42-11152). After that, check your income each year and notify the assessor in writing of any disqualifying event (income over the limit, sale or transfer of the property, or a surviving spouse remarrying).	Laws 2026, Chapter 2 (HB 2792), amending A.R.S. 42-11111, approved Feb 12, 2026
Partial property tax exemption for veterans with a disability (rated below 100% service-connected, or any nonservice-connected rating)	Arizona resident veteran with a VA service-connected rating under 100%, or a nonservice-connected rating of 100% or less. The household income limit (claimant, spouse and resident children) has a statutory base of $34,901, or $41,870 if a child under 18 or a child with a total and permanent disability lived in the home. Both figures are indexed annually by the GDP price deflator.	An exemption of up to $4,188 of assessed (limited property) value (statutory base, indexed each year by ADOR using the GDP price deflator), multiplied by the veteran's VA disability percentage. Example: 50% rating = half the indexed amount. An unused amount can be applied against vehicle license tax.	File the affidavit with the county assessor when first claiming (A.R.S. 42-11152), with VA rating letter, Arizona ID and proof of income. Recheck income every year and notify the assessor of any disqualifying event.	Laws 2026, Chapter 2 (HB 2792), A.R.S. 42-11111(D), (F), (H), (L)

Is military retired pay taxed in Arizona?

Arizona state income tax on military retired pay (checked November 4, 2026)
Treatment	Amount or limit	Source
Fully exempt. Arizona subtracts the full amount of benefits, annuities and pensions received as retired or retainer pay of the U.S. uniformed services from Arizona gross income.	No cap. The full amount is exempt for tax years beginning after December 31, 2020; it was capped at $3,500 for 2019-2020 and $2,500 before that. Active-duty, reserve and National Guard pay is also subtractable (A.R.S. 43-1022(11)).	azleg.gov

For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.

Paid tool Retired pay, VA compensation, property tax and your other income all land in one budget. Personal PRO runs it year by year on 10,000 market paths, with federal and Arizona tax, and shows the odds the money lasts, with a PDF you keep. A planning tool, not advice. Run my own retirement numbers — Personal PRO ($49) → See what is included, and every price →

Other Arizona veteran benefits

Vehicles and license plates

Arizona: vehicles and license plates for veterans
Benefit	Who qualifies	Amount	Source
Vehicle license tax and registration fee exemption for 100% disabled veterans	A veteran certified by the VA as 100% disabled and receiving compensation on that basis, for a personally owned vehicle (including one co-owned with another party). Also a veteran whose vehicle was acquired with VA financial aid. The exemption continues for the surviving spouse until they remarry or die.	No vehicle license tax and no registration fee, for one vehicle (or its replacement)	azleg.gov
Vehicle license tax and registration fee exemption for Purple Heart recipients	Honorably discharged veteran who is a bona fide Purple Heart medal recipient, with proof given at initial registration	No vehicle license tax and no registration fee, for one personally owned vehicle	azleg.gov
Congressional Medal of Honor license plates	Registered owner of a personal vehicle who is a bona fide Medal of Honor recipient	Up to three distinctive plates at no additional cost; no registration fee on the original or any renewal	azleg.gov
Veteran special license plates (seven designs: flag, Army, Navy, Marine Corps, Air Force, Coast Guard, Native American code talkers)	Any veteran with satisfactory proof of veteran status, and their immediate family members	$25 fee for the original plate and each renewal ($17 of it goes to the veterans' donations fund); motorcycle plates available	azleg.gov

Hunting, fishing and other licenses

Arizona: hunting, fishing and other licenses for veterans
Benefit	Who qualifies	Amount	Source
Resident hunting and fishing licenses for active-duty service members and spouses stationed in Arizona	Active-duty U.S. armed forces member, or the member's spouse, stationed in Arizona on permanent or temporary duty	May buy a resident license (resident pricing) to take wildlife	azleg.gov

Education

Arizona: education for veterans
Benefit	Who qualifies	Amount	Source
Spouses of military veterans tuition scholarship	Spouse of an honorably discharged U.S. armed forces veteran who qualifies for in-state tuition, is an Arizona resident, files the FAFSA each year and keeps satisfactory academic progress, attending an Arizona public university or community college	Tuition and mandatory fees minus other federal and public aid, subject to available fund money (administered by the Arizona Board of Regents)	azleg.gov
Tuition waiver scholarship for children and spouses of service members killed in the line of duty (and certain Purple Heart recipients)	Child or spouse of a U.S. armed forces or National Guard member who was an Arizona resident or stationed in Arizona and was killed in the line of duty, as verified by the Arizona Department of Veterans' Services or the adjutant general. The statute also covers U.S. armed forces Purple Heart recipients who were Arizona residents or stationed in Arizona when injured and have a VA disability rating of 50% or more (no class 1-5 felony conviction), and the child (30 or younger) or unremarried spouse of a veteran who suffered a line-of-duty post-traumatic stress injury and died by suicide.	Tuition waiver at any Arizona Board of Regents university or Arizona community college district (community college waivers capped at 64 credit hours)	azleg.gov

Employment

Arizona: employment for veterans
Benefit	Who qualifies	Amount	Source
Veterans' preference in state and local merit-system hiring	Veteran separated under honorable conditions after more than 6 months of active duty (5 points). A veteran with a service-connected disability or receiving VA or military disability compensation gets 10 points. Certain spouses and surviving spouses (of a veteran who died of a service-connected disability, of a POW/MIA service member, or of a veteran with a total permanent service-connected disability) get 5 points.	5- or 10-point preference added to a passing exam score (maximum 10 points); preference codes where exams are not scored	azleg.gov

State veterans homes

Arizona: state veterans homes for veterans
Benefit	Who qualifies	Amount	Source
State veterans' homes operated by the Arizona Department of Veterans' Services	Veterans meeting the department's admission rules	The department is authorized to acquire, build and operate veterans' home facilities in Arizona. Rates and locations are set by the department (not stated in statute).	azleg.gov

Common questions

Does Arizona have a property tax exemption for disabled veterans?

Arizona lists 2 veteran property tax benefits. The main one: Full property tax exemption on the primary residence for veterans with a 100% service-connected disability. Who qualifies: Arizona resident veteran (honorable conditions) whose VA service-connected disability rating is 100%. A primary residence the veteran owns jointly with a spouse is treated as owned solely by the veteran. The surviving spouse may keep the full exemption on their primary residence while they live there and do not remarry. The statute's income test (subsection H, base $34,901, or $41,870 with minor or disabled children at home, indexed annually) is written to apply to 'an exemption under this section', which includes this one. Exemptions are mutually exclusive with the widow/widower and total-and-permanent-disability categories.. Amount: Full exemption (100% of property tax on the primary residence). The 'primary residence' wording and the joint-ownership rule apply to tax years beginning after December 31, 2025 (tax year 2026 onward). (Laws 2026, Chapter 2 (HB 2792), amending A.R.S. 42-11111, approved Feb 12, 2026).

How do I apply for the Arizona veteran property tax exemption?

File the exemption affidavit with the county assessor when first claiming (A.R.S. 42-11152). After that, check your income each year and notify the assessor in writing of any disqualifying event (income over the limit, sale or transfer of the property, or a surviving spouse remarrying). (Laws 2026, Chapter 2 (HB 2792), amending A.R.S. 42-11111, approved Feb 12, 2026).

Does Arizona tax military retirement pay?

Fully exempt. Arizona subtracts the full amount of benefits, annuities and pensions received as retired or retainer pay of the U.S. uniformed services from Arizona gross income. Amount or limit: No cap. The full amount is exempt for tax years beginning after December 31, 2020; it was capped at $3,500 for 2019-2020 and $2,500 before that. Active-duty, reserve and National Guard pay is also subtractable (A.R.S. 43-1022(11)). (azleg.gov).

What other benefits do veterans get in Arizona?

Vehicle license tax and registration fee exemption for 100% disabled veterans (azleg.gov); Vehicle license tax and registration fee exemption for Purple Heart recipients (azleg.gov); Congressional Medal of Honor license plates (azleg.gov); Veteran special license plates (seven designs: flag, Army, Navy, Marine Corps, Air Force, Coast Guard, Native American code talkers) (azleg.gov); Spouses of military veterans tuition scholarship (azleg.gov); Tuition waiver scholarship for children and spouses of service members killed in the line of duty (and certain Purple Heart recipients) (azleg.gov); Veterans' preference in state and local merit-system hiring (azleg.gov); State veterans' homes operated by the Arizona Department of Veterans' Services (azleg.gov); Resident hunting and fishing licenses for active-duty service members and spouses stationed in Arizona (azleg.gov). Who qualifies and the amounts are in the tables above.

Sources

Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.

Arizona senior property tax relief → Arizona state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →