Disabled Veteran Property Tax Exemption
Arkansas Disabled Veteran Property Tax Exemptions in 2026
Justia, 26 U.S.C. § 26
Arkansas Dept. of Finance & Administration
Veterans Affairs, Disability Compensation
Arkansas provides a full property tax exemption for 100% P&T disabled Veterans on their homestead and personal property. Under AR Code §26-3-306, qualified Veterans pay $0 in property tax, no cap on home value. At Arkansas’s average effective rate of 0.57%, a Veteran with a $250,000 home near Little Rock AFB saves roughly $1,425 per year. That is $119 per month directly reducing your VA loan payment.
100% P&T Exemption
- Full exemption, $0 property tax on homestead and personal property
- Also covers Veterans with loss or loss of use of limbs, or total blindness
- No cap on home value, exemption applies to the full assessed amount
- File with your county assessor with VA documentation
Partial Disability
- Arkansas does not offer a tiered exemption for partial disability ratings
- Only 100% P&T, loss of limb, or total blindness qualifies for the full exemption
- All Veterans may qualify for the standard homestead credit under Amendment 79
- If rated below 100%, apply for the standard homestead credit instead
Filing And Deadlines
- Apply with your county assessor, not the state or VA
- No fixed statewide deadline, file as soon as you qualify and own the property
- Beginning 2026: LLCs and trusts owning the homestead now qualify
- File early in the tax year to ensure full-year benefit
VA Loan Impact
- $0 tax escrow = lower monthly PITI = better DTI ratio
- $119/month savings on a $250K home adds ~$14K in buying power
- Notify your lender about the exemption so escrow is calculated correctly
- Get exemption approved before or shortly after closing
Frequently Asked Questions
How much does a 100% disabled Veteran save on property tax in Arkansas?
A 100% P&T Veteran pays $0 in property tax on their homestead. On a $250,000 home at Arkansas’s average 0.57% effective rate, that saves approximately $1,425 per year, about $119 per month.
Do partially disabled Veterans get any property tax relief in Arkansas?
Not under the disabled Veteran exemption. Arkansas only provides the full exemption for 100% P&T, loss of limb, or total blindness. However, all homeowners including Veterans qualify for the standard homestead credit under Amendment 79.
Where do I apply for the Arkansas disabled Veteran property tax exemption?
File with your county assessor. Bring your VA Summary of Benefits letter showing 100% P&T or qualifying special monthly compensation, your DD-214, and proof of homestead occupancy.
The Bottom Line Up Front
Arkansas gives 100% P&T disabled Veterans a full property tax exemption on their homestead and personal property, no cap on home value, no income test. Veterans who lost or lost the use of limbs, or who are totally blind due to service, also qualify. At the state’s average effective rate of 0.57%, a Veteran with a $250,000 home near Little Rock AFB saves $1,425 per year. That is $119 per month that either stays in your pocket or supports a higher mortgage payment through improved DTI.
Arkansas is an all-or-nothing state for the disabled Veteran exemption. If you are rated below 100% P&T and do not have a qualifying special monthly compensation condition, the Veteran-specific exemption does not apply. You would instead use the standard homestead credit that all Arkansas homeowners receive. If you are planning to buy with a VA loan, understanding whether you qualify for the full exemption or just the standard credit determines how your lender calculates escrow.
What To Do Based On Your Situation
- Buying a home in Arkansas soon: Apply for the exemption immediately after closing. Tell your lender about your 100% P&T status during preapproval so they set escrow at $0 for property tax from the start.
- Already own a home in Arkansas: If you have not applied, file with your county assessor now. Bring your VA Summary of Benefits letter and DD-214.
- Surviving spouse or minor dependent: Arkansas extends the exemption to the surviving spouse and minor dependent children of qualifying Veterans. File with the county assessor with the Veteran’s death certificate and VA documentation.
What Does Arkansas Offer Disabled Veterans?
Arkansas provides a straightforward full exemption under AR Code §26-3-306. There are no tiers, no partial credits, and no sliding scales. You either qualify for the full exemption or you do not.
The qualifying conditions are specific: service-connected 100% total and permanent disability, loss or loss of use of one or more limbs due to service, or total blindness in one or both eyes due to service. The exemption covers both real property (your home and land) and personal property owned by the Veteran.
| Qualification | Exemption amount | Annual savings on $250K home at 0.57% | Monthly PITI reduction |
|---|---|---|---|
| 100% P&T service-connected | Full exemption, $0 tax | $1,425 | $119 |
| Loss/loss of use of limb(s) | Full exemption, $0 tax | $1,425 | $119 |
| Total blindness (service-connected) | Full exemption, $0 tax | $1,425 | $119 |
| Surviving spouse of qualifying Veteran | Full exemption, $0 tax | $1,425 | $119 |
| 10–99% disability (no qualifying SMC) | Standard homestead credit only | Varies | Varies |
Deal Math: A 100% P&T Veteran buying a $275,000 home in Pulaski County (Little Rock) at a 0.62% effective rate saves $1,705 per year, $142 per month. Combined with the VA funding fee exemption (saving $5,913 upfront on a $275,000 loan), the total first-year benefit is $7,618. Over a 30-year mortgage, the property tax savings alone total $51,150.
What Is The Exemption Worth In Real Dollars?
Arkansas has some of the most affordable housing in the country, which means the dollar value of the property tax exemption is moderate compared to high-cost states. But combined with already-low home prices, the total cost of homeownership for a 100% P&T Veteran in Arkansas is among the lowest in the nation.
| Home value | Effective tax rate | Annual tax without exemption | Annual tax with 100% exemption | Monthly savings |
|---|---|---|---|---|
| $175,000 | 0.55% | $963 | $0 | $80 |
| $250,000 | 0.57% | $1,425 | $0 | $119 |
| $325,000 | 0.60% | $1,950 | $0 | $163 |
| $400,000 | 0.62% | $2,480 | $0 | $207 |
Home Search Impact: A Veteran with the 100% exemption shopping near Little Rock AFB (Pulaski County, effective rate ~0.62%) gains approximately $80 to $140 per month in payment capacity compared to a non-exempt buyer at the same income level. At current VA rates, that translates to roughly $10,000 to $17,000 more in purchasing power. In a market where the median home price is $247,000, that extra capacity can push you into a better neighborhood or a larger property.
How Does This Relate To Amendment 79?
Amendment 79 is the standard Arkansas homestead tax credit that all homeowners can receive. It freezes your property’s assessed value for tax purposes and provides a tax credit. However, there is a critical rule: you cannot claim both the disabled Veteran exemption and the Amendment 79 homestead credit simultaneously.
If you qualify for the disabled Veteran full exemption, you should take it, it eliminates your entire property tax bill. The Amendment 79 credit only freezes and reduces, not eliminates. For Veterans rated below 100% P&T who do not qualify for the Veteran exemption, Amendment 79 is still available and provides meaningful relief.
Who Is Eligible For The Arkansas Exemption?
Eligibility is narrow but clear. You must have an honorable discharge and meet one of the qualifying disability conditions. The exemption applies to the homestead you own and occupy as your primary residence.
- 100% P&T: Must have a VA-determined 100% service-connected permanent and total disability rating.
- Special monthly compensation: Loss or loss of use of one or more limbs, or total blindness in one or both eyes, must be service-connected.
- Honorable discharge: Required for all applicants. Other-than-honorable or dishonorable discharges do not qualify.
- Homestead requirement: Property must be your primary residence. No rental or investment properties.
- 2026 change: Beginning in the 2026 assessment year, homestead property owned through an LLC or revocable/irrevocable trust now qualifies for the exemption.
How Do You Apply In Arkansas?
File with your county assessor’s office. Arkansas does not have a statewide standardized form, each county handles applications locally. Bring your VA documentation and be prepared to provide proof of homestead occupancy.
- Gather your documents: VA Summary of Benefits letter showing 100% P&T or qualifying SMC, DD-214 (honorable discharge), and proof of homestead occupancy (driver’s license, utility bill).
- Find your county assessor: Key counties near Military installations: Pulaski County (Little Rock AFB), Sebastian County (Fort Chaffee), Jefferson County (Pine Bluff Arsenal).
- File the application: Submit in person or by mail to your county assessor. Some counties accept electronic submissions, call ahead to check.
- Notify your mortgage company: Once approved, submit a copy of the exemption approval to your lender so they can adjust escrow.
Process Watchpoint: Arkansas requires you to notify your mortgage company separately after the exemption is approved. The county does not contact your lender. If you do not request an escrow re-analysis, you will continue paying the full tax escrow amount even though the county has zeroed out your tax bill. Call your loan servicer as soon as you receive the exemption confirmation.
Where Do Veterans File Near Arkansas Military Bases?
Arkansas has three major Military installations. Home prices are affordable statewide, and tax rates are low compared to the national average.
| Military base | County | Approx. effective rate | Annual savings on $250K home (100% P&T) | Median home price (2026 est.) |
|---|---|---|---|---|
| Little Rock AFB | Pulaski | 0.62% | $1,550 | $247,000 |
| Fort Chaffee (JRTC) | Sebastian | 0.55% | $1,375 | $195,000 |
| Pine Bluff Arsenal | Jefferson | 0.58% | $1,450 | $170,000 |
How Does This Change Your VA Loan Math?
The property tax exemption directly reduces your monthly PITI, which improves your debt-to-income ratio and can increase the purchase price you qualify for on a VA loan.
- PITI impact: On a $250,000 home at 6.5% with $0 down, removing $119/month in tax escrow drops your total PITI from approximately $1,700 to $1,581. That is a 7% reduction in your housing payment.
- DTI improvement: At $5,500/month gross income, that $119 reduction drops your housing DTI from 31% to 29%, giving you significant headroom under the 41% VA benchmark.
- Buying power shift: The $119 monthly savings supports an additional $14,000 to $18,000 in purchase price at 6.5%. In a market where homes are already affordable, that extra capacity lets you choose a larger home or better location.
- Escrow adjustment: If you close before the exemption is approved, your lender will initially escrow for the full tax amount. Once the county processes your exemption, request an escrow re-analysis to reduce your monthly payment.
Do Surviving Spouses Keep The Exemption In Arkansas?
Yes. Arkansas extends the full exemption to the surviving spouse and minor dependent children of a qualifying Veteran. The surviving spouse retains the exemption on the homestead for as long as they remain un-remarried and continue to occupy the property.
Minor dependent children also qualify if the Veteran passed away while on active duty or from service-connected causes. The exemption continues until the child reaches the age of majority. Contact your county assessor for specific documentation requirements for surviving family members.
The Bottom Line
Arkansas provides a full property tax exemption for 100% P&T disabled Veterans with no cap on home value. On a typical $250,000 home near Little Rock AFB, that saves $1,425 per year, $119 per month off your VA loan payment. File with your county assessor, bring your VA Summary of Benefits letter, and you pay $0 in property tax. If you are rated below 100% P&T, you still qualify for the standard Amendment 79 homestead credit, just not the Veteran-specific full exemption.
Frequently Asked Questions
Should I apply for the exemption before or after closing on my VA loan?
After closing, you must own and occupy the home as your homestead. Apply immediately after closing to minimize time paying full taxes.
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.
Can I get the Veteran exemption and the Amendment 79 credit at the same time?
No. You must choose one or the other. The Veteran exemption eliminates your entire tax bill, making it the better choice for qualifying Veterans.
Can I combine the property tax exemption with the VA funding fee waiver?
Yes. These are separate benefits from different agencies. A 100% P&T Veteran is exempt from both the VA funding fee and Arkansas property tax.
Does IU (Individual Unemployability) qualify?
Yes, if the VA has determined you are 100% permanently and totally disabled and you are paid at the 100% rate. Bring your VA Summary of Benefits letter showing the P&T designation.
What about the 2026 LLC and trust change?
Beginning with the 2026 assessment year, homestead property owned through an LLC or trust (revocable or irrevocable) qualifies for the exemption, provided the Veteran or surviving spouse is the sole owner of the entity.
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.
Can I get the exemption on a second home or rental property?
No. The Arkansas disabled Veteran property tax exemption applies only to your primary residence homestead. Rental properties, second homes, and investment properties do not qualify.
Do I need to reapply every year?
Check with your specific county assessor. Some counties require annual renewal while others keep the exemption active until your circumstances change.
Does the exemption cover all taxing jurisdictions?
Yes. The exemption under AR Code §26-3-306 covers all state taxes on the homestead, including county, city, school district, and any special assessments.
How long does the approval process take?
Most counties process applications within 2 to 4 weeks. Processing times vary, call your county assessor for an estimate.
Can a surviving spouse keep the exemption if they move to a new home?
The surviving spouse should reapply at the new property with the county assessor. Bring the Veteran’s death certificate, VA documentation, and proof of occupancy at the new address.