Arizona Disabled Veteran Benefits

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If you are a disabled veteran living in Arizona, or thinking about moving here, this page puts every state-level benefit tied to your VA (U.S. Department of Veterans Affairs) disability rating in one place: the property tax exemption, state income tax breaks, vehicle fee waivers, parks and hunting/fishing, education for you and your family, State Veteran Homes, hiring preference, and more. Every dollar figure, deadline, and form name below comes from an official Arizona source, and I link that source so you can check it yourself. Where the state's own pages leave a number unsettled or index it to inflation, I tell you to confirm the current-year figure rather than guess.

Plain-language promise: I keep the how-to steps here so you can act. The only thing I route out is filing or increasing a VA claim, because that is free claims work best handled by an accredited Veterans Service Officer (VSO), never a paid company.

New for 2026 — a full property tax exemption for 100% disabled veterans, with an income test that stays in place. A 2025 state law, building on a 2022 voter-approved constitutional change, first created a fully exempt primary residence for a veteran with a 100% VA service-connected disability rating, originally set to start in tax year 2027. A second, emergency law then moved that up to tax year 2026 — it took effect February 12, 2026, so the benefit first shows up on the property tax bill due in October 2026. Two things to know before you rely on it: county assessors do apply an income test to this exemption — Maricopa County's assessor states directly that the statute "does not provide an exclusion from income requirements for 100% Service-Connected Disabled Veterans" — and a 2026 bill (SB1365) that would have dropped that income cap for veterans starting tax year 2027 died in the Arizona House without a floor vote and never reached the Governor, so it is not law. Separately, Individual Unemployability (IU/TDIU) does not by itself qualify you — the law keys on your VA rating being 100%, not your compensation rate, and at least one county assessor confirms the rating is what controls. Confirm the current-year income limit and your rating paperwork with your county assessor before you rely on this exemption.

Sources the statute · the 2026 law · the 2025 law · Maricopa County Assessor · SB1365 (died in House)

Property tax exemption

What it is: Arizona's veteran property tax relief all comes from one state law. It is not automatic — you file an affidavit with your county assessor. There is exactly one route to a full (100%) exemption for a veteran, plus a smaller partial exemption for lower ratings. The dollar figures below are indexed to inflation and the Arizona Department of Revenue re-sets them every year, so treat any specific number as "confirm the current year."

The one route to a FULL exemption, spelled out:

• 100% VA service-connected disability rating. The law is explicit: the property of a veteran whose VA disability rating is 100% is fully exempt from taxation. Note precisely what the law keys on:
  • It keys on the rating being 100%, not on "Permanent & Total." The law does not require a P&T designation and does not mention a separate specially-adapted-housing door. A 100%-schedular rating meets the plain words of the law.
  • Individual Unemployability (IU/TDIU) does not qualify on its own. The law's full-exemption sentence keys strictly on your VA disability rating being 100% — not on being paid at the 100% compensation rate. A veteran paid at the 100% rate through IU/TDIU while carrying a combined schedular rating below 100% does not meet that language. Maricopa County's assessor confirms this directly: eligibility "is determined by the combined service-connected disability rating shown on the Veteran's VA Benefits letter... not... the compensation payment level," and IU pay "at the 100% rate" with an "underlying combined disability rating... less than 100%" does not change that the rating — not the compensation amount — is "the controlling factor." If you are IU/TDIU below a 100% combined rating, expect the partial (below-100%) exemption instead, and confirm with your county assessor.
  • Primary residence, and joint ownership counts as yours. The home must be your primary residence. The new law provides that a residence owned jointly by the veteran and their spouse is treated as if owned solely by the veteran, so co-ownership with a spouse does not reduce the exemption.
  • Income is being tested in practice. For tax year 2026, county assessor guidance states a household-income cap of $39,865 for a claimant with no children under 18 in the home, or $47,826 if a minor or disabled child lives with the claimant (the figures are indexed and rise most years). The law excludes VA disability compensation, veterans' pensions, Social Security, and Railroad Retirement from that income calculation. Ask your assessor directly whether they are applying an income test to your 100% exemption, and confirm the current-year limit.
  • No asset or property-value ceiling on this route. A separate 2025 law removed the total-assessed-property-value cap for veterans, so unlike the widow/widower and non-veteran-disabled category below, a qualifying veteran's full exemption is not capped by the value of other property they own.
  • Surviving spouse continues it: the surviving spouse of a veteran who had the 100% rating may continue to claim the full exemption as long as they use the property as their primary residence and do not remarry.

  ℹ  Income test confirmed — the proposed fix (SB1365) did not pass

  Multiple county assessors apply the income-limit test above to both the partial veteran exemption and the new 100%-veteran full exemption. This is not just administrative caution: Maricopa County's assessor states directly that "the current statute does not provide an exclusion from income requirements for 100% Service-Connected Disabled Veterans in subsection H or any other provision," and A.R.S. 42-11111's own cross-references (subsections B, H, and K, all tied to the same constitutional authorization in Ariz. Const. art. 9, section 2(F)) support that reading. Senate Bill 1365, which would have removed the income cap for veterans starting tax year 2027, passed the Senate 26-3 on March 10, 2026 but was never heard in a House committee and died when the House took no further action ("Held in House") — it never reached the Governor and is not law. Unless a future legislature reintroduces and passes it, the income test stays in place for the 100% veteran exemption. Ask your assessor to confirm the current-year limit for your household, and ask a free accredited VSO to help you read your paperwork if anything is unclear.

  Sources Maricopa County Assessor · Yavapai County Assessor · SB1365 fact sheet

The partial exemption (for veterans rated below 100%):

• A veteran with a service-connected rating under 100% (or certain non-service-connected disabilities) gets a partial exemption: a base exemption amount multiplied by the VA disability percentage. The law's baseline text shows $4,188 of assessed value, and the Department of Revenue's adjusted figure for tax year 2026 is $4,873 (so, for example, a 50%-rated veteran's exemption is about $2,436). The same income limits described above ($39,865 / $47,826) apply to this partial exemption. As with the full exemption, the 2025 law removed the separate total-assessed-property-value cap for veterans — that value cap now applies only to the widow/widower/non-veteran-disabled category just below. These dollar figures move most years — confirm the current-year amount with your county assessor before relying on it. This partial exemption is the same statute that also covers widows/widowers and non-veterans with a total and permanent disability, who remain subject to a separate total-assessed-property-value limit (recently in the roughly $36,450–$36,900 range, depending on the county's published figure — confirm the exact current number with your assessor).

Proving the disability: for a veteran, that's your VA award/rating letter (your Summary of Benefits Letter). Your main filing is the county's Affidavit of Individual Tax Exemption (Form 82514); a non-veteran claiming under the disability category (not most veterans) instead uses the Department of Revenue's Certification of Disability for Property Tax Exemption (Form 82514B), signed by a physician. Your county assessor will tell you exactly which form and attachments they need. County assessor pages publish local instructions.

1. Find your county assessor's office (search "[your county] AZ assessor veteran exemption"). They administer this, not the state.
2. Gather your VA award letter stating your disability percentage (and whether it is 100%), proof the home is your primary residence, a copy of your most recent Arizona income tax return (or other income proof if you don't file one), and, if asked, your discharge document (DD Form 214).
3. File the Affidavit of Individual Tax Exemption with the county assessor. New claims typically run from around January 2 through the last business day of February (sometimes stated as March 1) — ask your assessor for the exact filing dates.
4. If you are 100% disabled, ask specifically about the full exemption for 100% disabled veterans, whether they are applying an income test to you and at what current-year limit, and whether there's any property-value ceiling on your specific claim (if you are IU/TDIU rather than 100%-schedular, confirm your paperwork qualifies).
5. Because the law requires you to re-confirm income eligibility each year and notify the assessor of any disqualifying change, ask how annual renewal works so you don't lose the exemption.
6. Confirm it posted by checking your next tax bill for the exemption line.

Sources the statute · Maricopa County Assessor · Cochise County Assessor · Yavapai County Assessor

State income tax

What it is: Arizona does not tax your VA disability, and it fully exempts military retirement pay.

• VA disability compensation is federally tax-free, and Arizona does not add tax on top of it — it is not part of federal adjusted gross income, which is where the Arizona return starts.
• Military retirement pay is 100% exempt from Arizona income tax, with no dollar cap, for tax years 2021 and forward (a change from the old $3,500 cap). This is a full subtraction of retired/retainer pay of the uniformed services, and survivor annuities such as the Survivor Benefit Plan (SBP) are likewise not taxed by Arizona.
• Active-duty pay (including combat-zone pay) may be subtracted to the extent it was included in Arizona gross income.
• The subtraction is taken on Form 140 (full-year resident) or Form 140PY (part-year resident); check the current-year Form 140 instructions (PDF) for the exact subtraction line. No separate Arizona veteran income-tax credit beyond these subtractions was found in official sources; re-check each filing season in case new law adds one.

1. Confirm your VA disability compensation never appears as income on your Arizona return (it should not appear on your federal return either, and Arizona starts from your federal figures).
2. If you receive military retirement pay or SBP, take the full subtraction on Form 140/140PY using the current-year instructions.
3. If a prior return taxed VA compensation or military retirement pay, fix it with a preparer familiar with military filings or by contacting the Department of Revenue — this is a filing mechanic, not claims work.

Sources State Dept. of Revenue

Vehicles, plates & tolls

What it is: the Arizona Motor Vehicle Division (MVD) waives the vehicle license tax (VLT) and registration fee on one vehicle for qualifying veterans. State law provides three separate veteran categories.

• 100% disabled veteran (one vehicle): a veteran certified by the VA as 100% disabled pays no VLT or registration fee on one personally owned (or co-owned) vehicle; it transfers to a replacement vehicle. The surviving spouse keeps the exemption until remarriage or death (annual re-certification applies).
• VA-financed adapted vehicle (one vehicle): a separate category for a vehicle acquired with financial aid from the VA (the VA automobile/adaptive-equipment grant) and any replacement.
• Purple Heart recipient (one vehicle): a bona fide Purple Heart medal recipient who was honorably discharged pays no VLT or registration fee on one personally owned vehicle, on satisfactory proof at registration.
• Disabled veteran / veteran license plates: Arizona issues Disabled Veteran and Veteran specialty plates through MVD. MVD's own fee page lists the Veteran specialty plate at $25 to issue and $25 a year to renew, with $17 of each fee going to a fund that benefits veterans — but plate fees change over time, so confirm the current fee directly with MVD at the counter or online. This plate fee is separate from, and does not affect, the VLT/registration exemption described below.
• Don't confuse this with the deployment exemption. The 100%-disabled VLT waiver is processed at registration/renewal with your VA certification — there is no special numbered form for it. A different one-time benefit, the Special Military Exemption (Form 96-0240, PDF), is for deployed service members and is unrelated to a disability rating.

1. Get your VA certification of 100% disability (VA benefits/award letter), or your Purple Heart proof, or your VA vehicle-grant award, depending on which category fits you.
2. Visit any MVD or Authorized Third Party office with that document and your vehicle title/registration information, and ask for the VLT/registration fee exemption on one vehicle (and a Disabled Veteran or Veteran plate if you want one).
3. Confirm at the counter that the VLT and registration fees are waived before you pay, and ask what the surviving-spouse re-certification looks like if that applies.

Sources the statute · DMV (MVD)

Recreation: parks, hunting & fishing

What it is: a free state-parks day-use pass for 100% disabled veterans, and free or reduced hunting/fishing licenses through the Arizona Game and Fish Department (AZGFD).

• Arizona State Parks — 100% disabled veterans: a complimentary Disabled Veterans day-use pass for veterans who show VA-certified proof of a 100% service-connected disability. It covers free day entry (and admits up to three accompanied adults when the pass holder is present) but does not cover camping, overnight parking, Kartchner Caverns or Riordan Mansion tours, or special-event/reservation fees. Get it by bringing your VA certification to any park visitor center or the Central Phoenix office.
• Arizona State Parks — active duty and veterans below 100%: 50% off day-use entrance with a valid military ID at the gate (also admits up to three accompanied adults).
• Hunting & fishing — 100% disabled veterans (free): a complimentary combination hunting/fishing license for a veteran with VA certification of a permanent service-connected disability rated 100%, plus one or more consecutive years of Arizona residency immediately before applying. The paper license is free; an optional plastic card is $4. Apply by bringing (or mailing) a copy of your VA benefits letter with an application to a local AZGFD office or the Phoenix office.
• Hunting & fishing — Purple Heart recipients: a 50% discount on the standard combination hunting/fishing license for a Purple Heart recipient with at least one full year of Arizona residency (effective Sept. 24, 2022).
• Reduced-fee license for other disabled veterans: AZGFD also offers reduced-fee combination licenses in some cases; the exact current price is set by AZGFD's fee schedule, so confirm the current amount with AZGFD before relying on a figure.

1. For the parks pass, bring VA-certified proof of 100% service-connected disability to any park visitor center or the Central Phoenix office.
2. For the free hunting/fishing license, get your VA benefits letter showing a 100% permanent service-connected rating, confirm you meet the one-year Arizona residency test, and apply at a local AZGFD office or by mail to Phoenix.
3. Purple Heart recipients: bring proof of the award and one year of Arizona residency for the 50% license.

Sources State Parks · Game and Fish Dept · Game and Fish Dept veteran licenses

Education for you & your family

What it is: the Arizona Department of Veterans' Services (ADVS) administers a State Tuition Waiver that can cover undergraduate tuition at Arizona's public universities and community colleges, and it can be used alongside federal benefits like the GI Bill.

• What it covers: tuition for the credits needed for an undergraduate degree at any state-supported Arizona public university or community college (on-campus or online). It does not cover books, parking, course fees, or room and board.
• Who qualifies (spell it out — this is a narrow program):
  • Purple Heart recipients: a former member of the U.S. Armed Forces who was an Arizona resident (or was stationed in Arizona) at the time of the injury that earned the Purple Heart, and whose VA disability rating is 50% or more.
  • Arizona National Guard members who received the Purple Heart after September 11, 2001.
  • Surviving dependents (unremarried spouse and/or child up to age 30) of an Arizona National Guard member or U.S. Armed Forces member who was an Arizona resident (or stationed in Arizona) and was killed in the line of duty or died of line-of-duty injuries.
  • Important gap to know: the waiver keys on the Purple Heart (plus a 50%+ rating), a National Guard post-9/11 Purple Heart, or a qualifying survivor. A high VA rating alone — even 100% P&T — does not appear to qualify a veteran without a Purple Heart. If you think you might qualify another way, confirm directly with ADVS.
• How to apply: complete the ADVS Tuition Waiver and Verification Form (fillable PDF) and submit it with your supporting VA and service documents to ADVS for verification. Free help is available from ADVS Veterans Benefits Counselors. Arizona also has a separate in-state tuition provision for veterans.

1. Confirm which door fits you (Purple Heart + 50%+ rating, National Guard post-9/11 Purple Heart, or qualifying surviving dependent).
2. Download and complete the ADVS Tuition Waiver and Verification Form (PDF) and gather your Purple Heart proof, VA rating letter, and residency documentation.
3. Submit it to ADVS for verification, and coordinate with your school's financial aid office so the waiver applies against actual tuition owed. Ask an ADVS Veterans Benefits Counselor for free help if any eligibility question is unclear.

Sources State Dept. of Veterans' Services · in-state tuition provision

State Veteran Homes & long-term care

What it is: Arizona runs State Veteran Homes — Medicare-certified skilled-nursing facilities — in Phoenix, Tucson, Yuma, and Flagstaff (the Flagstaff home opened in fall 2024).

• The homes: Phoenix (about 104 beds), Yuma (about 80 beds, including a memory-care unit), Flagstaff (about 80 beds, including memory care and a rehab-focused unit), and Tucson (adjacent to the Southern Arizona VA hospital). Bed counts change — confirm current capacity and openings with the specific home.
• Who is eligible: an honorably separated veteran (or the spouse of a veteran) who requires skilled nursing care as determined by a physician, with documented absence of tuberculosis.
• Cost note: these are subsidized skilled-nursing facilities, and for veterans with higher VA disability ratings the VA may pay a substantial share of the cost of care. Because how much you pay depends on your VA rating and coverage, ask the home's admissions coordinator to price out your specific situation.

1. Pick the closest home (Phoenix, Tucson, Yuma, or Flagstaff) from the ADVS homes directory.
2. Confirm you meet the service, care-need, and TB-documentation requirements, and request the Arizona State Veteran Home application packet (PDF).
3. Call that home's admissions coordinator (number is on each home's page), ask for the physician's-statement packet, and confirm your specific cost given your VA rating.
4. Have your discharge document (DD Form 214) and VA rating letter ready to submit.

Sources State Dept. of Veterans' Services

State hiring & civil service

What it is: Arizona gives veterans extra points when they compete for state government jobs.

• Preference points: a 5-point preference for an honorably separated veteran (more than six months of active duty), and a 10-point preference for a veteran with a service-connected disability or who receives VA compensation or disability retirement. Points are added only to a passing score, and no one may receive more than a 10-point preference.
• Spouses: a 5-point preference is available to the spouse or surviving spouse of a veteran who died of a service-connected disability, is missing in action / captured / detained, or has a total, permanent service-connected disability.
• The preference attaches to the competitive examination/hiring process; ask the hiring agency how it is applied for a given posting.

1. When you apply for a State of Arizona job, claim veteran status and request your preference (5 points, or 10 for a service-connected disability), with your DD Form 214 and VA rating letter ready.
2. If you are a qualifying spouse or surviving spouse, ask about the 5-point spousal preference.
3. Confirm with the hiring agency's HR how the preference was applied to your score.

Sources the statute · State Dept. of Administration

Other: burial, cemeteries, licensing

What it is: free burial for the veteran in a state veterans' cemetery, plus a few smaller programs.

• State veterans' cemeteries — no charge for the veteran: ADVS operates three cemeteries — Arizona Veterans' Memorial Cemetery at Camp Navajo (Bellemont), at Marana, and the Southern Arizona Veterans' Memorial Cemetery (Sierra Vista). For an eligible veteran, burial (gravesite, opening/closing, concrete liner for casket burials, government marker, and perpetual care) is at no cost. A per-plot fee applies for a spouse or dependent (recently $780) and for National Guard/Reservist interments (recently $948) — confirm current fees with ADVS.
• Pre-registration: you can establish eligibility in advance using the ADVS cemetery pre-registration form (PDF).
• Federal option: Arizona veterans may instead be buried in a VA national cemetery.
• Professional/occupational licensing: the Arizona Registrar of Contractors waives its license fee for a veteran who was honorably discharged no more than two years before applying (a separate income-based waiver is also available to anyone under 200% of the federal poverty guidelines). Even with the waiver, a Residential or Dual license applicant still owes the Residential Recovery Fund assessment. Other licensing boards may offer their own veteran fee waivers with different rules, so confirm with the specific licensing agency.

1. For cemetery eligibility, complete the pre-registration form or contact the cemetery directly; keep your DD Form 214 with your records so your family can act quickly.
2. If you were recently discharged and are getting a professional license, ask the specific licensing board whether an application-fee waiver applies.

Sources State Dept. of Veterans' Services · VA National Cemeteries · Registrar of Contractors

Who to call

The Arizona Department of Veterans' Services (ADVS) is your single front door for the programs above and for a free accredited VSO to help with a VA claim, a rating, or applying for these benefits.

• Website: dvs.az.gov
• Main office: 3839 N 3rd St, Phoenix, AZ 85012 · Main phone: (602) 255-3373
• ADVS runs a statewide network of Veterans Benefits Offices offering free benefits counseling — find your nearest one at Find ADVS Offices.
• Property tax questions: your county assessor (they administer the exemption).

1. Anything tied to your actual VA rating — filing a new claim, appealing, or arguing for a higher percentage — goes to a free accredited VSO. ADVS Veterans Benefits Counselors do this at no cost, or find an accredited VSO at VA.gov. Never pay a private company for basic claims help.
2. State-program questions (property tax, plates, parks, education, homes, hiring, burial) go to the specific office linked in that section, or start at dvs.az.gov.

Sources the statute

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