The Arizona Department of Veterans’ Services (ADVS) runs four state veteran homes, in Flagstaff, Phoenix, Tucson and Yuma, and a statewide network of accredited Veteran Benefits Counselors. The biggest recent change is property tax: beginning with tax year 2026, Arizona fully exempts the primary residence of veterans rated 100% service-connected or paid at the 100% rate through TDIU.
State benefit details verified against official state sources on September 27, 2026.
Key benefits at a glance
| Benefit | Who qualifies | Amount / limit | Official source |
|---|---|---|---|
| Full property tax exemption | 100% service-connected or TDIU; unremarried surviving spouse | Entire primary residence | A.R.S. § 42-11111 |
| Partial property tax exemption | Service-connected below 100%, or nonservice-connected | Statutory amount (adjusted yearly) times the rating | ADOR |
| Military retirement exclusion | Uniformed services retirees | Fully exempt since tax year 2021 | ADOR |
| Vehicle license tax and registration exemption | 100% disabled and paid at that rate; surviving spouse | One vehicle | ADOT MVD |
| Hunting and fishing license | One-year residents with a permanent 100% service-connected rating | Complimentary license authorized by law | A.R.S. § 17-333 |
| Immediate in-state tuition | Veterans (90+ days active duty) and eligible family using Ch. 30, 31, 33 or 35 | In-state rates at public universities and community colleges | ADVS |
| Tuition waiver scholarship | Children and spouses of Arizona service members killed in the line of duty | Tuition at Arizona universities and community colleges | A.R.S. § 15-1808 |
| State hiring preference | Veterans with 6+ months active duty; veterans who also have a disability | 5 points; 10 points | A.R.S. § 38-492 |
Property tax exemption
A.R.S. § 42-11111 was rewritten in 2025 and again in 2026. The Arizona Department of Revenue (ADOR) says the changes apply to tax years beginning on or after January 1, 2026:
- 100% service-connected or TDIU: the veteran’s primary residence is fully exempt. If the veteran and spouse own the home together, it is treated as owned solely by the veteran.
- Service-connected below 100%, or a nonservice-connected rating: a partial exemption equal to a statutory dollar amount multiplied by the VA disability percentage. The statute lists $4,188 of assessed value, and ADOR adjusts the figure every year for inflation. Any unused amount can be applied to the vehicle license tax.
- Surviving spouses: an unremarried surviving spouse of a veteran who had the full exemption keeps a full exemption on the primary residence. ADOR says it continues the veteran’s exemption, applies only to that property, and can first be claimed in January 2027. The surviving spouse of a partially exempt veteran gets the same prorated amount.
The assessed-value cap no longer applies to veteran exemptions. ADOR’s FAQ says the household income limit still applies to all individual exemptions. The statute ties that limit only to the widow, widower and total-disability exemption, so ask your county assessor which rule it applies before you file.
How to apply: file an affidavit with your county assessor during the annual window, from the first Monday in January through March 1. Include your VA rating letter, or your TDIU award. If you already had a veteran exemption before January 1, 2026, you don’t need to reapply to get the expanded benefit. If you move, you have 60 days to file a transfer form with the assessor in the new county.
State income tax
- Military retirement: retired or retainer pay of the uniformed services has been fully exempt since tax year 2021 (A.R.S. § 43-1022, paragraph 26). ADOR also lists active duty pay and National Guard and reserve pay as excluded.
- VA disability compensation: it is excluded from federal gross income, and Arizona’s income tax starts from federal adjusted gross income, so it isn’t taxed by the state.
Vehicle registration and license plates
Under A.R.S. § 28-5802, ADOT’s Motor Vehicle Division collects no vehicle license tax or registration fee from:
- a veteran certified by VA as 100% disabled and paid on that basis, for one personally owned vehicle. The exemption passes to a surviving spouse until remarriage or death. Bring a VA eligibility letter or a DoD ID card showing 100% Disabled American Veteran status.
- a veteran whose vehicle was bought with VA financial aid
- an honorably discharged Purple Heart recipient, for one vehicle
If you have a veteran property tax exemption from your county, bring the assessor’s certified statement to MVD so any unused exemption can reduce your vehicle license tax.
ADVS says Arizona’s Veteran plates cost $25 plus a $25 annual renewal, with $17 of each $25 going to the Arizona Veterans’ Donations Fund. A version with the disability symbol is available at no extra charge to applicants who submit ADOT’s disability form. Veterans can also add a veteran designation to an Arizona driver license or ID by showing a DD-214 at MVD.
Hunting and fishing licenses
A.R.S. § 17-333 authorizes the Arizona Game and Fish Commission to issue:
- a complimentary license to a veteran who has lived in Arizona for at least one year and receives VA compensation for a permanent service-connected disability rated 100%
- a license at a reduced fee of up to 25% off to a one-year resident veteran who receives compensation for any service-connected disability
Ask the Arizona Game and Fish Department which license types and prices currently apply and what proof it needs.
Education benefits
- Immediate in-state tuition: under A.R.S. § 15-1802(L), a veteran discharged after 90 or more days of active duty who enrolls at an Arizona public university or community college while using Chapter 30, 31, 33 or 35 benefits is classified as in-state right away. You must show objective evidence that you intend to live in Arizona, such as registering to vote, getting an Arizona driver license or registering a vehicle. ADVS says eligible spouses and dependents using those benefits qualify too.
- Tuition waiver scholarship (A.R.S. § 15-1808): the child or spouse of an armed forces member who lived or was stationed in Arizona and was killed in the line of duty gets a tuition waiver at Arizona universities and community colleges. The same waiver covers the child or spouse of an Arizona veteran who suffered a post-traumatic stress injury in the line of duty and died by suicide. Children must be 30 or younger and spouses must not have remarried. ADVS verifies eligibility for military families.
State veterans homes
ADVS operates four Medicare-certified skilled nursing homes for honorably separated veterans and their spouses who need skilled nursing care:
- Arizona State Veteran Home - Flagstaff: Flagstaff (opened fall 2024)
- Arizona State Veteran Home - Phoenix: Phoenix
- Arizona State Veteran Home - Tucson: Tucson
- Arizona State Veteran Home - Yuma: Yuma
Admission forms are on the ADVS veteran homes page, or call the home’s admissions coordinator.
Employment preference
A.R.S. § 38-492 applies to merit-system jobs with the state and with cities, counties and other political subdivisions:
- 5 points for a veteran separated under honorable conditions after more than six months of active duty, added only to a passing score
- 10 points for a veteran who also qualifies for the 5-point disability preference
- 5 points for the spouse or surviving spouse of a veteran who died of a service-connected disability, among others listed in the statute
How to apply for Arizona veteran benefits
- Download your VA benefit summary letter from VA.gov. If you’re paid at 100% through TDIU, keep that award letter as well.
- For the property tax exemption, file the affidavit with your county assessor between the first Monday in January and March 1.
- For the vehicle license tax exemption, bring the VA letter, or the assessor’s certified statement, to MVD.
- For in-state tuition, give the school’s veterans office your VA Certificate of Eligibility and proof that you intend to live in Arizona.
- For free help with federal and state benefits, schedule an appointment with an ADVS Veteran Benefits Counselor at 602-535-1215. Counselors work statewide, in person, by phone or by video, and in each state veteran home. The ADVS main office is at 1688 W. Adams Street, Phoenix, AZ 85007, 602-255-3373.
VA offices and medical centers in Arizona
Phoenix VA Regional Benefit Office: 3333 North Central Avenue, Phoenix, AZ 85012.
VA medical centers in Arizona:
- Carl T. Hayden Veterans’ Administration Medical Center: Phoenix
- Tucson VA Medical Center: Tucson
- Bob Stump Department of Veterans Affairs Medical Center: Prescott
The Northern Arizona VA Health Care System’s clinics include sites in Chinle, Kayenta and Tuba City in the northeastern part of the state. Find other outpatient clinics with the VA facility locator.
Filing a federal VA disability claim from Arizona
The VA disability claim process is the same in every state. See how to file, check your claim status and the 2026 compensation rates. ADVS Veteran Benefits Counselors, accredited by VA, prepare claims and appeals at no charge. If you’re in crisis, call the Veterans Crisis Line at 988 and press 1.
Frequently Asked Questions
Do 100% disabled veterans pay property tax in Arizona?
Not on their primary residence, starting with tax year 2026. A.R.S. § 42-11111(C) fully exempts the primary residence of a veteran whose service-connected rating is 100% or who is paid at the 100% rate for individual unemployability (TDIU). An unremarried surviving spouse keeps the full exemption. New applications go to your county assessor between the first Monday in January and March 1. Veterans who already had an exemption before 2026 don't need to reapply.
How does the Arizona exemption work if I'm rated less than 100%?
Veterans with a service-connected rating below 100%, or a nonservice-connected disability rating, get a partial exemption: a statutory dollar amount of assessed value (listed in A.R.S. § 42-11111 as $4,188 and adjusted each year by the Arizona Department of Revenue) multiplied by the disability percentage. The assessed-value cap no longer applies to veterans, but ADOR says the household income limit still applies, so confirm your eligibility with the county assessor.
Does Arizona tax military retirement or VA disability pay?
Arizona has fully exempted retired or retainer pay of the uniformed services since tax year 2021 (A.R.S. § 43-1022). VA disability compensation is excluded from federal gross income, and Arizona's income tax starts from federal adjusted gross income, so it is not taxed by the state either.
Do disabled veterans pay vehicle registration in Arizona?
A veteran the VA certifies as 100% disabled and paid on that basis owes no vehicle license tax or registration fee on one personally owned vehicle (A.R.S. § 28-5802). The exemption continues for a surviving spouse until remarriage or death. Veterans whose vehicle was bought with VA financial aid, and honorably discharged Purple Heart recipients, also qualify for one vehicle.
Can veterans get in-state tuition right away in Arizona?
Yes, if they are using VA education benefits. Under A.R.S. § 15-1802(L), a veteran discharged after 90 or more days of active duty who enrolls at an Arizona public university or community college while using Chapter 30, 31, 33 or 35 benefits gets immediate in-state tuition after showing intent to live in Arizona, such as registering to vote or getting an Arizona driver license. The Arizona Department of Veterans' Services says eligible spouses and dependents using those benefits qualify too.
Sources
Every rating percentage, diagnostic code, and dollar figure on this page is sourced from the references below. See our editorial policy for how we choose and verify sources.
- A.R.S. § 42-11111, Exemption for property; veterans with a disability — Arizona State Legislature
- Property Tax FAQs (veterans with a disability) — Arizona Department of Revenue
- Military Tax Filing — Arizona Department of Revenue
- A.R.S. § 43-1022, Subtractions from Arizona gross income — Arizona State Legislature
- Vehicle License Tax Exemptions — Arizona Department of Transportation, Motor Vehicle Division
- A.R.S. § 28-5802, Vehicle license tax exemption; veterans — Arizona State Legislature
- Veteran License Plates — Arizona Department of Veterans' Services
- A.R.S. § 17-333, License classifications; reduced fee and complimentary licenses — Arizona State Legislature
- In-State Tuition — Arizona Department of Veterans' Services
- A.R.S. § 15-1802, In-state student status — Arizona State Legislature
- A.R.S. § 15-1808, Tuition waiver scholarships — Arizona State Legislature
- Arizona State Veteran Homes — Arizona Department of Veterans' Services
- Veteran Benefits Counselors (VBCs) — Arizona Department of Veterans' Services
- A.R.S. § 38-492, Preferences — Arizona State Legislature
- Phoenix VA Regional Benefit Office — U.S. Department of Veterans Affairs
- VA Phoenix Health Care: Locations — U.S. Department of Veterans Affairs
- VA Southern Arizona Health Care: Locations — U.S. Department of Veterans Affairs
- VA Northern Arizona Health Care: Locations — U.S. Department of Veterans Affairs
Related Guides
This content is for informational purposes only and does not constitute legal or medical advice. For personalized guidance, consult a VA-accredited VSO, attorney, or claims agent.
