Arkansas Disabled Veteran Property Tax Exemptions in 2026
Does Arkansas Exempt Disabled Veterans From Property Tax?
Arkansas provides a full property tax exemption on the homestead and personal property of Veterans with a 100% service-connected permanent and total disability, loss or loss of use of one or more limbs, or total blindness in one or both eyes due to Military service. The exemption is established by Amendment 65 to the Arkansas Constitution and implemented through ACA §26-3-306. There is no cap on home value and no income test. Apply through your county assessor with VA documentation. Beginning in 2026, homestead property held in an LLC or trust also qualifies. [1] [2] [3]
Property tax exemptions are administered by Arkansas county assessors, not by VA or VA Loan Network. This information is educational, not a tax assessment or mortgage approval.
Arkansas Veteran Exemptions at a Glance
Choose an area to jump to the law, calculations, application steps and important exceptions.
What Does Arkansas Law Provide?
Constitutional full exemption for qualifying disabled Veterans, no cap, no income test.
Who Qualifies for the Full Exemption?
100% P&T, limb loss, or total blindness from Military service.
What Is the Exemption Worth?
Savings by county and home value for qualifying Veterans.
How Do You Apply?
File with the county assessor; no statewide standard form.
How Does the Exemption Affect a VA Loan?
Taxes, escrow and buying power when property taxes drop to zero.
How Does the Homestead Credit Compare?
Veterans below 100% P&T still get the standard homestead credit.
Do Surviving Spouses and Dependents Qualify?
Unremarried spouses and minor children of qualifying Veterans.
Where Do Veterans File Near Military Bases?
County rates near Little Rock AFB, Fort Chaffee and Pine Bluff Arsenal.
Real-World Arkansas Veteran Scenarios
First-time buyer, existing homeowner, partial rating and survivor.
What Mistakes Can Cost You the Exemption?
Filing gaps, escrow errors and common misunderstandings.
Frequently Asked Questions
Straight answers to common Arkansas Veteran tax searches.
Sources and Verification Method
Statute, state agency guidance and federal rules.
Arkansas is an all-or-nothing state for the disabled Veteran exemption. If you qualify, your entire property tax bill goes to zero. If you do not meet one of the three qualifying conditions, you use the standard homestead credit that all Arkansas homeowners receive. There are no partial tiers and no sliding scale.
What Does Arkansas Law Provide?
Arkansas voters adopted Amendment 65 to the state constitution, establishing a full property tax exemption for certain disabled Veterans. The legislature implemented the amendment through ACA §26-3-306, which spells out the qualifying conditions, covered property and survivor provisions. [2] [1]
Amendment 65
Voters approved a constitutional amendment granting a full property tax exemption on the homestead of qualifying disabled Veterans. The amendment directs the General Assembly to implement the benefit through statute.
ACA §26-3-306
The statute defines qualifying conditions, covered property types (real and personal), homestead requirements, and extends benefits to unremarried surviving spouses and minor dependent children of qualifying Veterans.
Act 680 of 2025
Beginning with the 2026 assessment year, homestead property owned through an LLC or revocable or irrevocable trust qualifies for the exemption, provided the Veteran or surviving spouse is the beneficial owner.
The exemption covers all ad valorem state taxes on the homestead, including county, city, school district and special improvement district levies. Personal property owned by the qualifying Veteran is also exempt. This breadth makes Arkansas one of the most straightforward disabled Veteran exemption states in the country. [1]
Who Qualifies for the Full Exemption?
Eligibility is narrow but clear. You must have an honorable discharge and meet one of three service-connected disability conditions. The property must be your homestead, meaning your primary residence. [1] [3]
Three Qualifying Conditions
- 100% P&T: A VA-determined 100% service-connected permanent and total disability rating. The VA letter must confirm both permanent and total status.
- Limb loss: Service-connected loss or loss of use of one or more limbs. This includes Special Monthly Compensation categories for loss of use.
- Total blindness: Service-connected total blindness in one or both eyes.
Additional Requirements
- Honorable discharge: Required for all applicants. Other-than-honorable or dishonorable discharges do not qualify.
- Homestead: The property must be your primary residence. Rental properties, second homes and investment properties do not qualify.
- Ownership: You must own the property. Beginning in 2026, ownership through an LLC or trust qualifies if you are the beneficial owner.
| Qualifying condition | Exemption | Property covered |
|---|---|---|
| 100% P&T service-connected | Full exemption, $0 property tax | Homestead (real) + personal property |
| Loss or loss of use of limb(s) | Full exemption, $0 property tax | Homestead (real) + personal property |
| Total blindness (one or both eyes) | Full exemption, $0 property tax | Homestead (real) + personal property |
| 10% to 99% disability (no qualifying SMC) | No Veteran-specific exemption | Standard homestead credit only |
For a comprehensive look at all 100 percent disabled Veteran benefits, including the property tax exemption, VA funding fee waiver and healthcare, see our full guide. [3]
What Is the Exemption Worth in Real Dollars?
Arkansas has one of the lowest effective property tax rates in the country at 0.52% statewide, compared to the national median of approximately 0.89%. The dollar value of the exemption depends on your county’s effective rate and your home’s assessed value. [4]
| Home value | Effective rate | Annual tax without exemption | Annual tax with exemption | Monthly savings |
|---|---|---|---|---|
| $150,000 | 0.52% | $780 | $0 | $65 |
| $225,000 | 0.55% | $1,238 | $0 | $103 |
| $300,000 | 0.62% | $1,860 | $0 | $155 |
| $400,000 | 0.74% | $2,960 | $0 | $247 |
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The examples above use published county effective rates and are illustrative, not official tax assessments. Actual property taxes depend on the assessed value, local millage rates and any applicable credits. Arkansas assesses residential property at 20% of appraised market value, and millage rates vary by taxing jurisdiction within each county. [4] [5]
Although the annual dollar savings are lower than in high-tax states, the combination of affordable home prices and a full exemption makes Arkansas one of the least expensive states for a qualifying disabled Veteran to own a home. A Veteran using a VA home loan in Arkansas benefits from both the no-down-payment purchase and the complete elimination of property tax.
How Do You Apply?
File with your county assessor’s office. Arkansas does not have a single statewide application form for the disabled Veteran exemption. Each county handles applications locally. [1] [2]
Obtain your VA Summary of Benefits letter showing 100% P&T status, qualifying Special Monthly Compensation for limb loss, or total blindness. The letter must confirm the condition is service-connected.
Prepare your DD-214 showing honorable discharge, proof of homestead occupancy (driver’s license, utility bill showing the property address), and deed or ownership documentation.
Call ahead to confirm required documents and any county-specific forms. Key counties near Military installations: Pulaski (Little Rock AFB), Sebastian (Fort Chaffee), Jefferson (Pine Bluff Arsenal).
File in person or by mail. Some counties accept electronic submissions. October 15 is the statewide property tax deadline and homestead credit application date; file well before that.
Keep a dated copy of everything you submit. Ask the assessor when you will receive written confirmation and which tax year the exemption first applies to.
Once the exemption is approved, contact your lender and request an escrow re-analysis. The county does not notify your lender. Without this step, you continue paying full tax escrow.
Documents to Bring
- VA Summary of Benefits letter (P&T confirmation)
- DD-214 (honorable discharge)
- Proof of homestead occupancy (driver’s license, utility bill)
- Deed or proof of ownership
- Trust or LLC documentation (if applicable, beginning 2026)
After Initial Approval
Check with your county assessor about renewal requirements. Some counties keep the exemption active until circumstances change. Others may require periodic verification. If your disability rating changes or you move to a new property, you must file a new application at the new county.
If you do not yet have your Certificate of Eligibility, start there. The COE confirms VA loan entitlement, which is a separate process from the property tax exemption but often happens on a parallel timeline when buying a home. [1]
How Does the Exemption Affect a VA Loan?
The property tax exemption directly reduces your monthly PITI payment, which can improve your debt-to-income ratio and potentially increase the purchase price you qualify for on a VA loan. [6] [7]
Before Exemption Approval
Illustrative $250,000 purchase at 6.5% with $0 down. Monthly principal and interest: $1,580. Homeowner insurance: $100. Property-tax escrow at 0.62%: $129.
This estimate does not include the VA funding fee if financed, which would increase the loan balance.
After Exemption Approval
Same $250,000 purchase. Principal and interest: $1,580. Insurance: $100. Approved property-tax escrow: $0.
Actual savings depend on your specific county rate, home value and lender escrow calculations.
A 100% P&T Veteran also qualifies for the VA funding fee exemption, which eliminates the one-time funding fee at closing. For a $250,000 first-use purchase with less than 5% down, the standard funding fee would be 2.15%, or $5,375. Combined with the annual property tax savings, the total first-year benefit can be substantial. These are separate federal and state benefits with independent eligibility rules. [6]
DTI and Residual Income
VA underwriting uses both debt-to-income ratio and residual income. Eliminating the tax escrow reduces your total housing expense, which improves both metrics. The actual impact on your qualification depends on your income, debts, family size and the lender’s underwriting. See our VA affordability calculator for a personalized estimate.
Escrow Timing
If you close before the exemption is approved, your lender will initially escrow for the full tax amount based on the most recent tax bill. Once the county processes the exemption, request an escrow re-analysis. The CFPB requires servicers to return surplus escrow funds within 30 days of annual analysis. [7]
For current interest rates and monthly payment estimates, see today’s VA loan rates. If you are comparing lenders, the VA funding fee calculator shows how the fee exemption changes your total closing costs.
How Does the Homestead Credit Compare?
Amendment 79 provides a standard homestead tax credit of up to $500 per year for all Arkansas homeowners, increasing to $600 beginning with the 2026 tax bills. It also freezes assessed values and caps annual increases at 5% for homesteads during reappraisals. [5]
Disabled Veteran Exemption (Amendment 65)
- Full elimination of all property taxes on homestead
- No cap on home value
- Covers real and personal property
- Requires 100% P&T, limb loss, or total blindness
- Cannot be combined with Amendment 79 credit
Standard Homestead Credit (Amendment 79)
- Up to $500 credit ($600 starting 2026)
- Assessed-value freeze on homesteads
- 5% annual increase cap during reappraisals
- Available to all homeowners regardless of Veteran status
- Cannot be combined with Amendment 65 exemption
Do Surviving Spouses and Dependents Qualify?
Arkansas extends the full exemption to the unremarried surviving spouse and minor dependent children of qualifying Veterans. The Veteran must have been killed in action, missing in action, or died from service-connected causes. [1] [3]
| Situation | Eligibility | Required documentation |
|---|---|---|
| Unremarried surviving spouse | Full exemption continues on the homestead | Death certificate, VA documentation, DD-214, proof of occupancy |
| Minor dependent children | Exemption continues during minority | Birth certificate, death certificate, VA documentation |
| Remarried surviving spouse | Exemption lost upon remarriage | Confirm with county assessor |
| Spouse who moves to a new home | Must reapply at new property | All original documents plus new deed and proof of occupancy |
Do not rely solely on a surviving spouse’s VA Dependency and Indemnity Compensation (DIC) receipt as proof of state property-tax eligibility. The county assessor determines the Arkansas exemption based on the Veteran’s qualifying conditions and the survivor’s ownership and residence status. The property tax exemption hub can help compare survivor rules across states. [1] [3]
Where Do Veterans File Near Military Bases?
Arkansas has three major Military installations. Home prices are affordable statewide, and tax rates are among the lowest in the nation. The county assessor for each installation’s area handles the exemption application. [4]
| Military installation | County | Effective rate | Median home value | Illustrative annual savings at median |
|---|---|---|---|---|
| Little Rock AFB | Pulaski | 0.74% | $235,700 | $1,744 |
| Fort Chaffee (JRTC) | Sebastian | 0.55% | $213,900 | $1,176 |
| Pine Bluff Arsenal | Jefferson | 0.73% | $121,500 | $887 |
Effective rates and median home values are based on American Community Survey data reported by SmartAsset. Actual taxes depend on assessed value and local millage. If you are PCSing to Arkansas, the 2026 Arkansas BAH rates help you compare housing allowances with real costs in each area. [4]
Pulaski County (Little Rock AFB)
The highest effective rate in the state at 0.74%, but also the largest metro area with the broadest selection of housing, healthcare and VA services. A qualifying Veteran buying at the median saves approximately $145 per month.
Sebastian County (Fort Chaffee)
The Fort Smith metro area offers lower home prices than Little Rock. At a 0.55% effective rate, a qualifying Veteran at the median saves approximately $98 per month. Fort Chaffee serves as a Joint Readiness Training Center site.
Jefferson County (Pine Bluff Arsenal)
The most affordable median home value among the three at $121,500, though the effective rate is relatively higher at 0.73%. Monthly savings at the median are approximately $74. Pine Bluff Arsenal is a chemical demilitarization site.
Veterans considering homes near Arkansas’s borders should compare neighboring-state exemptions. Each state has different qualifying rules: Missouri, Oklahoma, Texas, Louisiana, Mississippi and Tennessee all handle disabled Veteran property tax relief differently. Use the state-by-state hub to compare before choosing where to buy.
Real-World Arkansas Veteran Scenarios
The following cases illustrate how the exemption applies in different situations. Dollar figures are illustrative and not a guarantee of a specific tax outcome. [1] [4]
100% P&T Near Little Rock AFB
The Veteran uses a VA loan to purchase a $250,000 home in Pulaski County. At 0.74%, the annual tax would be $1,850. With the full exemption approved, the tax drops to $0, saving $154 per month. The Veteran also qualifies for the VA funding fee exemption, saving $5,375 at closing.
Recently Rated P&T in Sebastian County
The Veteran already owns a home valued at $200,000 in Fort Smith. After receiving the P&T determination, the Veteran files with the Sebastian County assessor. At 0.55%, the annual savings are $1,100, or $92 per month. The Veteran calls the mortgage servicer to request an escrow re-analysis.
70% Rated Veteran in Benton County
The Veteran does not qualify for the Amendment 65 exemption because the rating is below 100% P&T and there is no qualifying SMC condition. The Veteran files for the Amendment 79 homestead credit instead, receiving up to $600 per year. The Veteran should also review the current VA disability compensation rates to confirm benefit amounts.
Unremarried Spouse in Jefferson County
The qualifying Veteran passed away from service-connected causes. The unremarried spouse files with the Jefferson County assessor, providing the death certificate, VA documentation, DD-214 and proof of occupancy. The full exemption continues on the $130,000 homestead, saving $949 per year.
What Mistakes Can Cost You the Exemption?
The most common errors are failing to notify the lender, assuming a partial rating qualifies, and missing the filing window after closing. [1] [7]
Before You File
- Confirm your VA letter says permanent and total, not just 100%
- Verify honorable discharge on DD-214
- Confirm the property is your primary homestead
- Gather ownership documentation (deed, trust, or LLC papers)
- Contact the county assessor for specific requirements
- File as soon as you own and occupy the property
Before You Budget for a Home
- Do not assume $0 tax escrow until the county confirms
- Tell your lender about P&T status during preapproval
- Separate the property tax exemption from the funding fee exemption
- Use the actual county tax rate, not the statewide average
- Remember you cannot combine Amendment 65 and Amendment 79
- Plan for initial escrow if closing before exemption approval
Frequently Asked Questions
Answers to the questions Arkansas Veterans ask when evaluating property tax relief in 2026.
How much does a 100% disabled Veteran save on property taxes in Arkansas?
A qualifying Veteran pays $0 in property tax on the homestead. At the statewide average effective rate of 0.52%, a $225,000 home saves approximately $1,170 per year, or $98 per month. Savings vary by county; Pulaski County at 0.74% yields higher dollar savings on the same home value. [4]
Do partially disabled Veterans get any property tax relief in Arkansas?
Where do I apply for the Arkansas disabled Veteran property tax exemption?
File with your county assessor’s office. Bring your VA Summary of Benefits letter showing P&T status or qualifying SMC, DD-214, and proof of homestead occupancy. There is no single statewide form; each county handles applications locally. [1]
Does TDIU (Individual Unemployability) qualify for the Arkansas exemption?
It may, if the VA has determined you are permanently and totally disabled and you are paid at the 100% rate. The key is whether your VA Summary of Benefits letter specifically confirms P&T status. A TDIU decision alone, without the P&T designation, may not satisfy the statutory requirement. Bring your letter to the county assessor for review. [1]
Can I get the Veteran exemption and the Amendment 79 homestead credit at the same time?
Can I combine the property tax exemption with the VA funding fee waiver?
Will my lender adjust my escrow automatically?
No. You must contact your loan servicer after the exemption is approved and request an escrow re-analysis. The county does not notify your lender. Without this step, you continue paying the original tax escrow amount. [7]
What about the 2026 LLC and trust change?
Act 680 of 2025 allows homestead property owned through an LLC or trust (revocable or irrevocable) to qualify for the exemption beginning with the 2026 assessment year, provided the qualifying Veteran or surviving spouse is the beneficial owner of the entity. [2]
Does the exemption cover all taxing jurisdictions in my county?
Yes. The exemption under ACA §26-3-306 covers all state taxes on the homestead, including county, city, school district and any special assessment or improvement district levies. It is not a local-option program. [1]
Can I get the exemption on a second home or rental property?
No. The exemption applies only to your primary-residence homestead. Rental properties, second homes and investment properties do not qualify. [1]
What if my disability rating changes?
If your rating drops below 100% P&T and you do not have a qualifying SMC condition, you lose the Veteran exemption. You would then qualify for the standard homestead credit under Amendment 79. If your rating increases to qualify, file immediately with the county assessor. [1]
Can a surviving spouse keep the exemption if they move to a new home?
Sources and Verification Method
This article relies on the Arkansas Constitution, ACA §26-3-306, state agency guidance, county assessor information, VA.gov and the CFPB. County-level tax data is sourced from SmartAsset’s analysis of American Community Survey records. [1] [4]
- Military.com: Arkansas State Veterans Benefits. Veterans who are 100% service-connected disabled or have qualifying SMC conditions are exempt from state taxes on homestead and personal property.
- Arkansas General Assembly: Act 680 of 2025. Amends ACA §26-3-306 to allow homestead property in LLCs and trusts to qualify for the disabled Veteran exemption beginning with 2026 assessments.
- Military.com: Arkansas Survivor Benefits. Unremarried surviving spouses and minor dependent children qualify if the Veteran was KIA, MIA, or died from service-connected causes.
- SmartAsset: Arkansas Property Tax Calculator. Statewide effective rate 0.52%. County rates: Pulaski 0.74%, Sebastian 0.55%, Jefferson 0.73%. Based on American Community Survey data.
- Arkansas Department of Finance and Administration: Property Tax Relief. Homestead credit up to $500 ($600 starting 2026), Amendment 79 value freeze, assessed value increase caps, October 15 deadline.
- U.S. Department of Veterans Affairs: Funding Fee and Closing Costs. First-use purchase fee 2.15% with less than 5% down. Exempt categories include Veterans receiving VA disability compensation.
- Consumer Financial Protection Bureau: Mortgage Servicing FAQs. Escrow analysis timing, surplus and shortage requirements, servicer obligations.
- U.S. Department of Veterans Affairs: About Disability Ratings. How VA assigns disability percentages, combined ratings, and the distinction between schedular and extraschedular ratings.
- Arkansas Assessment Coordination Division. Oversees valuation and equalization of property for ad valorem tax across 75 counties. Assessment year and collection year timeline; October 15 tax payment deadline.
What We Verified
Constitutional basis (Amendment 65), implementing statute (ACA §26-3-306), 2025 LLC/trust amendment (Act 680), qualifying conditions, county effective tax rates, homestead credit comparison, survivor provisions, filing process and federal funding-fee exemption.
What Must Be Checked Locally
Your specific county assessor’s documentation requirements, application form, renewal policy, processing timeline and the exact millage rates applied to your property. A statewide article cannot verify a particular parcel’s assessed value or tax bill.
Know Your Tax Savings Before You Choose a Home.
Confirm the exemption with your county assessor. Then ask a VA loan specialist to review the complete housing payment, funding fee status and qualification picture for your Arkansas home purchase.