Arizona Veteran Financial Benefits
Arizona State Income Tax Exemptions for Military Pay:
Active-duty and reserve service members in the U.S. Armed Forces are not required to pay Arizona income tax on their military pay.
Exemption for Military Retirement Pay:
Arizona exempts 100% of military retirement income from state income taxes.
Thrift Savings Plan (TSP):
Although TSP does not deduct state or local taxes, distributions are reported annually on IRS Form 1099-R and may be subject to Arizona income tax. Early withdrawals might result in higher tax obligations.
Military Disability Retirement Pay Tax Exemption:
Disability retirement payments from the VA, such as pensions or allowances due to injuries or illness from active service, are excluded from taxable income. These may include:
- Disability compensation and pensions to Veterans and their families
- Grants for wheelchair-accessible housing
- Vehicle grants for Veterans with qualifying impairments
- Dependent-care assistance benefits
VA Dependency and Indemnity Compensation (DIC):
DIC payments, issued to eligible survivors of fallen service members or Veterans who passed due to service-connected conditions, are entirely tax-free in Arizona.
Exemption for Survivor Annuities:
Income from SBP, RCSBP, and RSFPP annuities is not subject to Arizona state income tax.
Tax Relief for Nonresident Military Spouses:
Nonresident spouses of active-duty service members stationed in Arizona are exempt from paying Arizona income tax if:
- The service member is in Arizona under official orders
- The spouse is in the state solely to accompany the service member
- Both maintain legal residency in another state
The spouse’s income remains taxable in their home state.
Arizona Property Tax Breaks for Disabled Veterans and Surviving Spouses:
Arizona residents who are disabled Veterans—or their unremarried surviving spouses—may qualify for a property tax exemption worth up to $4,748 of the property’s assessed value. This amount is multiplied by the Veteran’s VA disability rating. To qualify, the total assessed property value must be under $31,347, and income limits are:
- $38,843 if there are no children under 18
- $46,600 if there are children under 18 living in the household
Exemptions apply to real estate first, followed by a mobile home or vehicle.
Eligibility Requirements:
- Must be a resident of Arizona
- Veterans must have received an honorable discharge and a VA disability rating (either service-connected or non-service-connected)
- Surviving spouses must be unmarried and meet income qualifications
Required Documents:
- Veterans: DD214, proof of Arizona residency, VA Benefit Summary, and income documentation
- Surviving Spouses: Death certificate, proof of residency, and income documents
Applicants must apply through their local county assessor’s office.
Other Arizona Tax Exemptions:
- Social Security Income: Arizona does not tax Social Security benefits.
- Sales Tax Rates:
- Statewide base rate: 5.6%
- County taxes: up to an additional 5.3%
- Average combined rate (state + local): 8.37%
Recreational Benefits for Veterans and Service Members in ARIZONA
Arizona Hunting & Fishing Licenses for Disabled Veterans and Purple Heart Honorees
Arizona provides qualifying Veterans with either free or discounted hunting and fishing combo licenses. Here’s who qualifies:
- Free License: Veterans with a 100% permanent and total service-connected disability rating from the VA
- Discounted License ($42): Veterans with a service-connected disability rating less than 100%
- Purple Heart Recipients ($28): Individuals awarded the Purple Heart
To be eligible, applicants must have resided in Arizona for at least one year prior to applying.
Resident License Rates for Nonresident Military Members
Active-duty service members and their spouses who are temporarily or permanently stationed in Arizona for 30 days or more can purchase Arizona hunting and fishing licenses at resident pricing.
Arizona State Parks Veteran Discount Program
Arizona State Parks extend special discounts to military personnel and Veterans. The following benefits apply to the pass holder and up to three guests:
- Active Duty, National Guard, and Reserve: Present a military ID at park entrances to receive 50% off day-use entry (no pass needed).
- Veterans with 10–90% Disability: Eligible for a 50% discount on day-use passes. Must show a VA disability letter and valid Arizona driver’s license.
- Retired Arizona Veterans: Receive 50% off day-use passes by presenting a DD214 or retired military ID along with an Arizona driver’s license.
- 100% Disabled Veterans: Qualify for free day-use passes by showing a 100% service-connected VA disability rating and an Arizona driver’s license.
Discount Exclusions:
Discounts do not apply to cave or mansion tours, historic tours, special events, camping, overnight parking, or reservation and special use fees.
Passes are non-transferable, and photo ID is required for entry. Veterans can apply for the discount pass at any Arizona State Park location.
Additional Military & Veteran Benefits in Arizona
Arizona Military Family Relief Fund (MFRF)
The MFRF supports Arizona military families facing sudden financial difficulties due to military service. Eligible applicants may receive a one-time grant of up to $3,000, with a lifetime cap of $20,000.
Covered expenses include rent, car payments, and utilities. Items not covered include VA debts, education costs, legal fees, and credit card payments.
Eligibility for MFRF:
Applicants must be honorably discharged Veterans or active-duty service members and meet these conditions:
- Deployed overseas away from home station
- Arizona residency (qualifying conditions include home of record in AZ, deployed from AZ, served in AZ National Guard, or lived in Arizona continuously for 12 months)
Financial Hardship Criteria:
- Current or past military service directly caused financial strain
- Family members must prove the hardship is due to a service member’s military duties
- Surviving families of fallen or wounded service members may apply for help with travel or living expenses
If applying as a surviving spouse or dependent, the service member must have died in the line of duty while in a combat zone or receiving hazardous duty pay.
Arizona Gold Star Military Medal
This honor is awarded to families of Arizona service members killed in action while serving in the U.S. Armed Forces.
Eligibility:
Families of Arizona residents who died in combat (since February 13, 1912) are eligible if the service member was:
- Killed while engaged in combat with an enemy force
- Participating in military operations against hostile forces
- Serving alongside allied forces during a conflict involving opposing military forces
- Deployed in a combat zone by presidential order
Only one medal is awarded per qualifying individual. Applications must include a completed form, the DD1300 Report of Casualty, and proof of family relation.
Mail applications to:
Arizona Gold Star Military Medal
c/o Arizona Department of Veterans’ Services
3839 N 3rd Street
Phoenix, AZ 85012
Education Programs
Arizona Residency and Tuition Benefits for Veterans and Their Families
Qualified Veterans and their dependents can be granted immediate Arizona residency, which allows them to access in-state tuition rates while using VA education benefits.
Eligibility applies to Veterans—or their spouses or children—who were honorably discharged within the past 36 months after completing at least 90 consecutive days of active-duty service and are using VA education benefits under Chapters 30, 31, 33, or 35.
Applicants must also meet the following criteria:
- Reside in Arizona
- Satisfy one or more of the following:
- Register to vote in Arizona
- Obtain an Arizona driver’s license
- Register a vehicle in Arizona
- Work in Arizona
- Relocate banking accounts to Arizona
- Update permanent address on essential documents
- Submit other proof of Arizona domicile
Deferred Tuition and Fee Payment
Any student enrolled at a state-supported Arizona institution using VA educational benefits can postpone payment for tuition, required books, and materials for up to 120 days without incurring interest.
Tuition Waiver for Service Members, Veterans, and Dependents
Arizona public colleges and universities provide tuition waivers for eligible Service members, Veterans, and their family members. These waivers can be used toward the credit hours required to complete a bachelor’s degree at participating institutions.
Arizona National Guard State Tuition Reimbursement (STR)
STR reimburses tuition expenses for qualified Arizona National Guard members pursuing personal and professional educational goals. The program pays up to $250 per semester hour, capping at $5,250 annually.
Eligible Guard members may transfer these benefits to a spouse or dependent if registered in the Defense Enrollment Eligibility Reporting System. Eligibility requires the Guard member to:
- Complete coursework as a full- or part-time student at an accredited institution
- Maintain good standing in the Guard with no active flags during the reimbursement period and commit to 12 additional months of drilling after the final reimbursement
- Finish basic training and maintain at least 90% attendance in drills and annual training
- Earn at least a “C” average in each reimbursed course
Honorary High School Diplomas for Wartime Veterans
Arizona offers honorary high school diplomas to Veterans who left school to serve in WWII, the Korean War, or the Vietnam War.
To qualify, Veterans must:
- Live in Arizona
- Have left high school early to enlist in the U.S. Armed Forces during one of the specified wars
- Have received an honorable discharge
Family members, including surviving spouses, may also request the diploma posthumously with appropriate documentation.
Arizona’s Interstate Compact on Educational Opportunity for Military Children
This initiative aims to ease educational transitions for children of military families by:
- Streamlining enrollment and record transfer processes
- Ensuring consistent placement and academic standards
- Supporting timely graduation
- Allowing participation in academic and extracurricular programs
- Establishing rules for uniform data sharing among states, schools, and families
- Coordinating with other agreements that affect military children
- Fostering collaboration among schools, students, and parents to enhance academic success
Housing: The following are the sites for Veterans Homes
Arizona State Veterans Home at Flagstaff
Arizona State Veterans Home at Phoenix
Arizona State Veterans Home at Tucson
Arizona State Veterans Home at Yuma
Admission Requirements:
To qualify for entry, applicants must be Veterans who received an honorable discharge. They must also present medical certification confirming the need for skilled nursing care. Additionally, documentation proving they are free from tuberculosis is required. In certain cases, spouses of Veterans may also be eligible for admission.
Employment and Job Training: Veteran Hiring Advantages
Under federal regulations, military Veterans who have a service-connected disability or served during designated wartime periods or military campaigns are given preferential treatment when applying for jobs within the Federal civil service. This includes an edge in hiring decisions as well as retention during workforce reductions. Veterans may qualify for an additional 5 or 10 points during scoring for exams or interviews, depending on their service details and disability status.
5-Point Preference:
Veterans receive an extra five points added to their examination score or rating if they served:
- During a declared war, or
- Between April 28, 1952, and July 1, 1955, or
- More than 180 consecutive days (not for training) anytime between February 1, 1955, and October 14, 1976, or
- During the Gulf War (August 2, 1990 – January 2, 1992), or
- Over 180 consecutive non-training days from September 11, 2001, through August 31, 2010 (Operation Iraqi Freedom), or
- In any campaign or expedition where a campaign medal or Armed Forces Expeditionary Medal was awarded (e.g., Panama, Lebanon, Southwest Asia, Haiti, Somalia, El Salvador, and Grenada).
10-Point Preference Categories:
- Compensable Disability (CP): Veterans with a service-connected disability rating of at least 10% but less than 30% receive 10 extra points on their examination score or rating.
- 30%+ Disability (CPS): Veterans with a disability rating of 30% or more earn 10 points added to a passing score.
- Standard Disability (XP): Ten points are granted to Veterans with a current service-connected disability or those receiving VA or military disability payments who don’t qualify under CP or CPS, including those awarded a Purple Heart.
- Derived Preference (XP): A spouse, surviving spouse, or mother of a Veteran may receive a 10-point preference, provided they meet certain eligibility criteria. Preference is not granted if the Veteran is still alive and eligible for federal employment.
- Spouse of a Disabled Veteran: A 10-point preference may also be awarded to the spouse of a service-disabled Veteran who is unable to qualify for a federal position due to their disability. This can apply if the Veteran:
- Is officially rated as 100% disabled or unemployable by the VA or military
- Left civil service due to a service-connected condition
- Has unsuccessfully attempted to secure work in their typical field due to their disability
USERRA (Uniformed Services Employment and Reemployment Rights Act):
USERRA safeguards job rights for military members transitioning back to civilian roles. It strengthens legal protections, expands eligibility for Department of Labor assistance, and includes federal workers under its umbrella.
Veterans’ Priority Services at Arizona DES Offices:
Arizona Department of Economic Security (DES) offers tailored career support and training programs for Veterans and eligible individuals facing employment obstacles. Dedicated caseworkers help Veterans overcome challenges and find sustainable employment.
Available Services Include:
- Academic support and tutoring
- Alternative educational options
- Mentorship programs
- Paid/unpaid internships, apprenticeships, or job shadowing
- Occupational and skills-based training
- Leadership opportunities
- Counseling and supportive services
- Continued follow-up to ensure success
Priority of Service Defined:
Qualified Veterans and covered persons receive access to services earlier than others. When resources are limited, they are prioritized to receive services first or exclusively.
Burial and Memorial Information
Interment at the cemetery includes a gravesite, grave opening and closing services, a concrete liner for casketed burials, an official government headstone or marker, and ongoing maintenance. Options are also available for cremated remains, either through in-ground burial or placement in a Columbaria Niche. Plots are allocated as needed and cannot be pre-reserved. Burial services are provided at no cost for Veterans, while Spouses and eligible dependents incur a one-time fee of $780.
National Cemeteries include:
Phoenix: National Memorial Cemetery of Arizona
Prescott: Prescott National Cemetery
Arizona Veterans’ Memorial Cemeteries (AVMC): The state of Arizona operates five Veterans cemeteries that provide a respectful and honorable final resting place for military personnel, Veterans, and their qualifying family members.
- Sierra Vista: Southern Arizona Veterans’ Memorial Cemetary
- Bellemont: Arizona Veterans’ Memorial Cemetary at Camp Navajo
- Marana: Arizona Veteran’s Memorial Cemetary at Marana
- Tucson: Monte Calvario Veterans Cemetary
- San Carlos: San Carlos Apache Tribal Veterans Cemetary
Arizona VA Benefit Resources
Arizona offers Veterans access to both a District Benefits Office and a Regional Benefits Office, in addition to VA Medical Centers throughout the state.
Arizona VA District Benefits Office
- Phoenix: Pacific District
Arizona VA Regional Benefits Office
- Phoenix: Phoenix Regional Benefit Office
Arizona VA Medical Centers
- Phoenix: Phoenix VA Health Care System
- Prescott: Northern Arizona VA Health Care System
- Tucson: Southern Arizona VA Health Care System
Key Details Regarding Arizona Veteran Benefits:
Veterans applying for VA benefits for the first time must include a copy of their DD 214 discharge document. This record verifies the type of discharge received and includes essential details such as full name, Social Security number, military branch, and service dates. Veterans with an honorable or general discharge are typically eligible for the majority of VA benefits.
It’s important to store this documentation and medical records in a secure location accessible to both the Veteran and their family. Use a safe or other secure space to ensure the records are protected from loss, damage, or tampering.
Most VA benefit eligibility is tied to a discharge from active duty military service that was not under dishonorable conditions. Active duty refers to full-time service in the Army, Navy, Air Force, Marine Corps, or Coast Guard, or as a commissioned officer in the Public Health Service, Environmental Services Administration, or National Oceanic and Atmospheric Administration.
Veterans who received a dishonorable discharge due to bad conduct adjudicated by a general court-martial may be disqualified from receiving VA benefits. However, those currently incarcerated or on parole may still qualify for specific benefits. Local VA regional offices can help determine eligibility in complex cases involving incarceration or multiple discharges under varying circumstances.
Arizona Veteran Benefits
If you’re a disabled Veteran living in Arizona with a VA disability rating of 90% or lower, you might qualify for extra benefits. Reach out to Vital Veterans Consultants for a complimentary, no-obligation consultation. Our team can assess your current claim to see if you’re eligible for further assistance.
*Information current as of June 2025.
