Arkansas Veteran Financial Benefits
State Tax Exemptions for Military Pay:
Military pay received by active duty and reserve personnel serving in the U.S. Armed Forces is not subject to Arkansas state income tax.
Tax-Free Military Retirement Pay:
Retired military members do not pay Arkansas income tax on their military pension.
Thrift Savings Plan (TSP) Taxation:
While TSP contributions are not subject to state or local tax withholding, all distributions are reported on IRS Form 1099-R and are taxable at the state level. Early withdrawals may lead to higher tax liabilities.
Tax Exemption on Military Disability Pay:
Disability retirement income, including pensions or annuities for injuries or illnesses from active service, is excluded from taxable income. This includes:
- VA disability compensation and pensions
- Grants for wheelchair-accessible housing
- Vehicle grants for Veterans with severe mobility impairments or blindness
- Dependent-care assistance benefits
Dependency and Indemnity Compensation (DIC):
DIC benefits, paid to surviving dependents of fallen service members or those who died from service-related causes, are entirely tax-free.
Survivor Annuity Tax Exemptions:
Annuities from the SBP, RCSBP, and RSFPP are not taxed by the state of Arkansas.
Military Spouse Residency Relief:
Nonresident military spouses stationed in Arkansas remain exempt from Arkansas income tax if their legal residence is another state.
Military Family Tax Relief Provisions:
- Profits from the sale of a primary residence may be excluded from Arkansas tax
- Travel expenses for National Guard or Reserve duty may be deducted
- Extra pay or allowances received by service members are not taxed by the state
Arkansas Service Members Civil Relief Act Benefits:
- Income tax payment deferral of up to 180 days due to military service
- No penalties or interest during tax deferral
- Suspension of the statute of limitations for collections during service and 270 days after
- No change in residency status for service-related relocation to Arkansas
- Service pay earned solely while stationed in Arkansas remains tax-exempt
Homestead and Property Tax Exemption:
Qualified disabled Veterans in Arkansas can receive full exemption from state taxes on their primary residence and personal property.
Eligibility Includes:
- Veterans with a 100% permanent and total service-connected VA disability
- Veterans receiving Special Monthly Compensation for limb loss or blindness
- Unremarried surviving spouses and dependent children, if:
- The Veteran had the exemption before death
- The service member died in active duty
- The Veteran was missing in action
- Death occurred due to a service-related cause
Surviving spouses who remarry may have benefits restored if the marriage ends. Annual recertification is required.
Sales Tax Exemption for Specially Adapted Vehicles:
Veterans using VA funds to purchase or modify a vehicle for a service-connected disability are exempt from Arkansas sales tax on the purchase. A VA Benefits Summary Letter must be provided as proof.
Social Security Tax Exclusion:
Social Security income is not taxed in Arkansas.
Sales Tax Overview:
- State rate: 6.5%
- Local rate cap: 5.5%
- Combined average rate: 9.26%
Recreation
Arkansas Disabled Veterans Hunting and Fishing Benefits:
The Arkansas Game and Fish Commission offers various hunting and fishing licenses to Disabled Veterans. Applicants must have lived in Arkansas for at least one year, submit VA proof of disability, and mail their applications to the Commission’s Little Rock Office.
Arkansas Resident Disabled Veteran Lifetime Fishing License ($1.50):
This license permits 100% permanently disabled Veterans residing in Arkansas to fish in all state waters. A separate trout permit is needed for designated trout areas.
Arkansas Resident Disabled Veteran Lifetime Hunting License ($1.50):
100% permanently disabled resident Veterans can hunt all game during open seasons and harvest the full deer bag limit. It includes six deer tags, two turkey tags, and furbearer hunting privileges.
Arkansas Resident Disabled Veteran Lifetime Combination License ($3):
This license combines the privileges of both lifetime hunting and fishing licenses for 100% permanently disabled resident Veterans.
Resident Partially Disabled Military Veteran Lifetime Combination License ($52.50):
Veterans rated 70% or more service-connected disabled, or 50%+ with a Purple Heart, can hunt and fish in Arkansas. This license also includes trout and duck stamps.
Arkansas Retired Service Member Hunting and Fishing Benefits:
Retired resident Service members aged 60+ can access various hunting and fishing licenses. One-year Arkansas residency is required, along with proof of retirement.
Arkansas Resident Military Retiree Lifetime Fishing License ($10.50):
Allows fishing in state waters for retired resident Service members. Trout areas require a separate permit.
Arkansas Resident Military Retiree Lifetime Hunting License ($25):
Grants retired Service members the ability to hunt all game during open seasons, includes six deer tags, two turkey tags, and allows furbearer hunting.
Arkansas Resident Military Retiree Lifetime Combination License ($35.50):
Combines the hunting and fishing privileges offered in the individual lifetime licenses for retired Service members.
Arkansas Hunting and Fishing Benefits for Active Duty Service Members:
Nonresident active duty personnel stationed in Arkansas can buy hunting and fishing licenses at resident rates. Arkansas natives on active duty may do the same regardless of current station.
Arkansas State Parks:
Veterans with a 100% permanent disability rating may receive discounts at many state parks. Accepted proof includes:
- A recent VA award letter (within two years)
- Arkansas license plates marked “DV” or “DAV”
- America the Beautiful-Access Pass or Golden Access Passport
Discounted Camping for Disabled Veterans at Arkansas State Parks:
Veterans with a 100% permanent, service-connected VA disability rating can camp year-round at half price in Arkansas State Parks. Proof can be a recent VA award letter or a qualifying Arkansas Disabled Veteran license plate.
Education Programs
Arkansas National Guard Tuition Waiver Program (NGTW):
The NGTW program covers up to 120 credit hours or the completion of a bachelor’s degree—whichever comes first—for Arkansas National Guard members enrolled at a state-supported public college or university. Tuition is waived first, allowing other military education benefits to address any remaining costs.
The program may also be used toward required fees, but it does not cover non-mandatory expenses such as books.
Eligibility for NGTW:
All current Arkansas National Guard members who meet these conditions may qualify:
- Resident of Arkansas
- Completed initial active duty training
- Do not already hold a bachelor’s degree or higher
- Enrolled in an undergraduate program at an Arkansas public college or university
- Not flagged for serious misconduct (e.g., AWOL)
- Maintain satisfactory academic progress according to the school’s policy
Applications must be submitted each semester. Members of the Arkansas Army National Guard can send applications to: ng.ar.ararng.list.education-office@army.mil.
Arkansas Military Dependents Scholarship Program (MDS):
This program offers a tuition waiver for eligible spouses and dependent children of qualifying Service members and Veterans. It applies toward a bachelor’s degree or certificate program at a public Arkansas college or university.
MDS covers tuition, mandatory fees, and room and board not paid by DEA benefits. It does not pay for books, auto permits, dorm damages, or utilities. The institution is reimbursed once the student is verified to be enrolled full-time. Students are eligible for a maximum of eight semesters or until their degree is completed, whichever occurs first.
Eligibility for MDS:
Spouses or dependent children of Arkansas resident Service members or Veterans meeting one of the following conditions may qualify:
- Declared missing in action or held as a prisoner of war
- Killed in action or on ordnance delivery
- Rated 100% disabled by the VA
Additional Requirements:
- Must be an Arkansas resident
- Spouse must be unremarried
- Must be a U.S. citizen or permanent resident
- Must be the biological or adopted child/spouse of the qualifying Veteran
- Accepted or enrolled at a qualifying Arkansas public institution
To remain eligible:
- Maintain a GPA of 2.0 or higher
- Complete at least 24 semester hours each academic year
Students must apply online via the Arkansas Scholarship Application Management System. A full list of required documents is available through the Arkansas Division of Higher Education. For more info, contact 501-371-2000 or email finaid@adhe.edu.
Arkansas High School Diplomas for Wartime Veterans:
School districts in Arkansas may award high school diplomas to Veterans who left school before graduating in order to serve in World War II, Korea, or Vietnam.
Eligibility Criteria:
- Arkansas resident
- At least 18 months of active duty service during:
- WWII: Sept. 16, 1940 – Dec. 31, 1946
- Korean War: June 1, 1950 – Jan. 1, 1954
- Vietnam War: July 3, 1965 – May 15, 1975
Interested individuals should contact their local school district or call the Arkansas Department of Education at 501-682-4475.
Arkansas High School Credits for Basic Training:
Students who complete Basic Training before graduating high school may receive two Career Focus credits. To qualify, students must enlist through the Delayed Entry Program or the National Guard Split Training Option.
Arkansas Resident Tuition for Nonresident Veterans, Service Members, and Dependents:
Public colleges and universities in Arkansas will charge in-state tuition to eligible nonresident Veterans, Service members, and their dependents.
Eligible individuals include:
- Veterans with an honorable discharge and 90+ days of active duty within the past three years
- Their spouse or child
- Active-duty Service members
- Their spouse or child
- Contracted ROTC cadets
Arkansas Interstate Compact on Educational Opportunity for Military Children (MIC3):
This compact supports children in military Families facing challenges due to frequent relocations. It aims to:
- Ensure timely enrollment and appropriate grade placement
- Promote continuity in academic programs and extracurricular activities
- Aid in smooth transitions and timely graduation
- Facilitate information sharing across states
- Coordinate with other compacts affecting military children
- Encourage flexibility between families and schools for student success
Arkansas Purple Star School Award for Military-Friendly Schools:
This award honors schools that demonstrate a strong commitment to military-connected students and their families.
To earn the award, a school must appoint a trained liaison to address military-related needs and ensure staff are informed of relevant considerations. Awarded schools maintain a dedicated military resources page on their website and receive public recognition from the Division of Elementary and Secondary Education.
Housing Assistance – Arkansas Veterans Homes
Arkansas operates two dedicated Veterans Homes to provide long-term care for qualifying Veterans and their families:
- Arkansas State Veterans Home – Fayetteville
- Arkansas State Veterans Home – North Little Rock
Who is Eligible for Admission?
To qualify for residency in one of the Arkansas State Veterans Homes, applicants must meet the following criteria:
- Served in the U.S. Armed Forces with deployment
- Received an honorable discharge
- Have no disqualifying criminal history
- Be an Arkansas resident (state residents receive priority placement)
- Be a Veteran, the Veteran’s spouse, or an un-remarried surviving spouse (including Gold Star parents), provided all other eligibility factors are met
- Require skilled nursing care due to medical necessity
Employment & Job Training Benefits for Veterans in Arkansas
Military Leave for Arkansas State Employees
Arkansas state employees who are part of a U.S. Armed Forces Reserve unit or the National Guard are entitled to 15 days of paid leave annually to fulfill training or official military duties—including travel time.
If called to active duty in an emergency by the Governor or the President, they may receive 30 additional days of paid leave. Afterward, leave without pay is granted. While on military leave, employees retain key employment benefits such as:
- Job seniority
- Performance evaluations
- Promotion status
- Retirement and insurance benefits
- All rights and entitlements accrued in their position
Eligibility:
National Guard and Reserve members who are employed by the State of Arkansas.
Veterans Preference in State Employment
Veterans in Arkansas are given hiring advantages for state jobs, including during:
- The initial hiring process
- Promotional opportunities
- Retention decisions
For positions requiring exams, extra points are added to qualifying applicants’ scores:
- +5 Points for:
- Honorably discharged Veterans
- Surviving Spouses of eligible Veterans
- National Guard or Reserve members
- Surviving Spouses of eligible Guard/Reserve members
- +10 Points for:
- Disabled Veterans
- Spouses of disabled Veterans unable to work due to their service-connected condition
If no exam is used, hiring managers must show proof of how Veterans’ preference influenced hiring. If an eligible applicant isn’t selected, they may request access to scores and selection documents.
Who Qualifies for the Hiring Preference?
- Honorably discharged active-duty Veterans (excluding those with only training duty)
- Surviving spouses of qualified Veterans or Guard/Reserve members
- Current or former Guard/Reserve members with at least six years of service
- Disabled Veterans age 55+ receiving VA compensation
- Spouses of disabled Veterans who are unable to work
Federal Protections – USERRA
The Uniformed Services Employment and Reemployment Rights Act (USERRA) ensures job protection for Service members. It:
- Safeguards reemployment rights after military leave
- Preserves benefits and seniority during time away
- Applies to both public and private employers
- Allows up to five cumulative years of military-related leave from civilian employment
- Includes exceptions for involuntary service, extended deployments, and required training
USERRA ensures that service frequency or length does not disqualify eligible individuals from reclaiming their civilian job, provided they meet basic reemployment conditions.
Burial and Memorial Honors
The National Cemetery Administration (NCA) honors the service and sacrifice of eligible Veterans and their families by offering dignified burial services and permanent memorials in recognition of their military commitment.
Veteran burial benefits include a gravesite in any open VA national cemetery (space permitting), professional opening and closing of the grave, ongoing maintenance of the site, a government-provided headstone or grave marker, a United States burial flag, and a Presidential Memorial Certificate—all offered at no cost to the family. Additionally, certain Veterans may qualify for a burial allowance. Whether casketed or cremated, remains are treated with equal reverence and interred accordingly.
Family members, such as spouses and dependent children, are also eligible for burial benefits. These include the option to be buried with the Veteran, site maintenance, and inscribing names and dates on the shared headstone, again without charge to the family. Notably, spouses and dependents may be buried prior to the Veteran and do not have to be laid to rest in the same national cemetery.
National Cemeteries in Arkansas:
- Fayetteville National Cemetery – Fayetteville
- Fort Smith National Cemetery – Fort Smith
- Little Rock National Cemetery – Little Rock
Arkansas VA Benefit Resources
Veterans in Arkansas have access to a Regional VA Benefits Office as well as VA Medical Centers to support their health and benefit needs.
Arkansas VA Regional Benefit Offices
North Little Rock: North Little Rock Regional Benefit Office
Arkansas VA Medical Centers
- Fayetteville: Veterans Health Care System of the Ozarks
- Little Rock: Central Arkansas Veterans Healthcare System John L. McClellan Memorial Veterans Hospital
- North Little Rock: Central Arkansas Veterans Healthcare System Eugene J. Towbin Healthcare Center
Key Details on Arkansas Veteran Benefits:
Veterans applying for VA benefits for the first time must submit a copy of their DD 214 (discharge paper), which includes essential details such as discharge type, full name, service branch, service period, and Social Security number. Generally, those with an honorable or general discharge are eligible for most VA benefits.
It’s crucial to keep your records — including medical documents — organized and stored in a safe, easily accessible place. This ensures both you and your loved ones can access them when needed, while also protecting them from damage or loss.
Qualification for most VA benefits requires a discharge from active duty under conditions other than dishonorable. Active duty refers to full-time service in the Army, Navy, Air Force, Marine Corps, or Coast Guard, as well as commissioned officers in the Public Health Service, Environmental Services Administration, or NOAA.
Be aware that a dishonorable discharge issued via general court-martial could disqualify Veterans from receiving VA benefits. Still, certain incarcerated or paroled Veterans may qualify for specific assistance. Regional VA offices can help clarify benefit eligibility in cases involving incarceration or varied discharge types.
Arkansas Veteran Support Opportunities
Disabled Veterans in Arkansas with a VA disability rating of 90% or lower may qualify for further benefits. Reach out to Vital Veterans Consultants for a complimentary, no-obligation consultation. Our team can evaluate your claim to see if you’re eligible for increased compensation or other available benefits.
Information current as of June 2024.
