Arkansas
Military Benefits

Military Pay and State Income Tax

Arkansas fully exempts military retirement pay and all active duty military pay from state income tax, with a growing trend toward expanded benefits for the military community.

Arkansas exempts all active duty military pay from state income tax for servicemembers on federal active duty orders. Arkansas residents who are on full-time active duty owe zero AR income tax on their military base pay, special pays, and allowances. This exemption applies regardless of whether the servicemember is stationed inside or outside Arkansas.

Arkansas fully exempts all military retired pay from state income tax with no age restriction and no income cap. This applies to retired pay from all branches of service and to Reserve and Guard retired pay. Military retirees relocating to Arkansas pay zero AR state income tax on their retirement checks. This full exemption has made Arkansas increasingly attractive for military retirees seeking to establish roots near the Central Arkansas area.

VA disability compensation is fully exempt from Arkansas state income tax, consistent with federal law. No special AR filing action is required. The exemption applies regardless of disability rating percentage.

Arkansas National Guard and Reserve members who are not on federal active duty orders pay Arkansas income tax on their drill and annual training pay. Federal active duty pay under Title 10 mobilization orders is fully exempt. Once mobilization orders are issued, all pay from that date forward is exempt.

Arkansas has strengthened its military tax exemptions over recent years. The Central Arkansas community near Little Rock AFB and Camp Robinson has grown as a destination for military retirees and transitioning servicemembers, partly due to the state's favorable tax treatment of military income.

Property Tax Exemptions for Veterans and Servicemembers

Arkansas provides full property tax exemption for 100% disabled veterans and a standard homestead tax credit that benefits all Arkansas homeowners, including military families.

Veterans rated 100% permanently and totally (P&T) disabled by the VA receive a complete exemption from Arkansas property taxes on their primary residence. The exemption applies to the full assessed value of the home. Apply through the county assessor's office with your VA award letter showing 100% P&T status, your DD-214, and proof of Arkansas residency.

The surviving spouse of a 100% P&T disabled veteran retains the property tax exemption on the primary residence as long as they do not remarry and continue to occupy the home as their primary residence.

All Arkansas homeowners who occupy their home as a primary residence qualify for the $375 annual homestead property tax credit. This credit is applied automatically in most counties. Military families who own and occupy their home in Arkansas benefit from this annual credit on top of any VA-related exemptions.

Arkansas offers property tax relief for veterans with service-connected disability ratings of 10% or more through a tiered exemption system. Veterans with lower ratings receive proportional partial exemptions. Contact your county assessor for current exemption amounts by disability rating tier.

Federal SCRA protections apply in Arkansas. Courts cannot foreclose on an active duty servicemember's primary residence without a court order while on active duty and for 9 months after separation. Servicemembers are also protected from personal property seizure for non-payment of personal property taxes without a court order.

Military Spouse Employment and Licensing

Arkansas has enacted expedited professional license reciprocity and unemployment insurance protections to support military spouse careers after a PCS to the Little Rock AFB area.

Arkansas requires licensing boards to process professional license applications from military spouses who hold a valid license from another state within 30 days of a complete application. Covered professions include nursing, teaching, real estate, cosmetology, counseling, and others regulated by Arkansas. Boards must notify applicants of missing documentation rather than simply denying applications.

Arkansas licensing boards may issue temporary practice permits allowing military spouses to work in their licensed profession while the full reciprocity application is being processed during the 30-day window. This prevents income interruption during the licensing transition.

Military spouses who leave employment to follow their servicemember on PCS orders are eligible for Arkansas unemployment insurance benefits. A PCS is recognized as a qualifying reason for job separation under AR law, and the spouse is not considered to have voluntarily quit without cause.

The Jacksonville and North Little Rock area near Little Rock AFB and Camp Robinson offers healthcare, defense contracting, government, retail, and professional services employment for military spouses. The Greater Little Rock metropolitan area has a diverse economy with opportunities across multiple sectors.

SCRA Federal Protections in Arkansas

The Servicemembers Civil Relief Act applies in full force in Arkansas. All AR courts, landlords, and lenders must comply with every SCRA provision.

You can terminate any Arkansas residential lease with 30 days written notice after receiving PCS orders or deployment orders for 90 or more consecutive days. Deliver written notice along with a copy of your orders to your landlord. The termination is effective 30 days after the next periodic rental payment date following the date of notice.

Any debt incurred before you entered active duty, including mortgages, car loans, student loans, and credit cards, must be reduced to a maximum 6% annual interest rate upon your written request with orders. The lender must forgive all interest above 6% for the period of active duty.

Arkansas courts cannot foreclose on an active duty servicemember's primary residence without a court order while on active duty and for 9 months after separation from active duty.

If sued in an Arkansas civil court while on active duty and unable to appear, you may request a stay of proceedings. Arkansas courts cannot enter a default judgment against an active duty servicemember without first holding a hearing.

Under SCRA, servicemembers stationed in Arkansas are not required to pay Arkansas personal property tax on their vehicles if those vehicles are registered and taxed in their legal home state. This prevents double taxation of vehicle personal property during a PCS to Arkansas.

Education Benefits in Arkansas

Arkansas offers state-level education programs for veterans and Guard members stacked on top of federal GI Bill benefits, with strong in-state tuition protections for active duty families.

Arkansas National Guard members in good standing may receive state tuition assistance for courses at Arkansas public colleges and universities. The program supplements federal Tuition Assistance (TA) and can effectively eliminate tuition costs at AR public institutions for qualifying Guard members. Members must maintain satisfactory academic progress and continued Guard service.

Active duty servicemembers stationed in Arkansas and their spouses and dependents are immediately eligible for in-state tuition at all Arkansas public colleges and universities with no 12-month waiting period required.

All Arkansas public colleges and universities participate in federal GI Bill programs. The University of Arkansas (Fayetteville) and Arkansas State University both have robust veterans services programs. Yellow Ribbon participants in Arkansas include University of Arkansas and others, covering costs above the public in-state rate for eligible veterans at private institutions.

Arkansas provides tuition waivers at Arkansas public colleges and universities for dependent children and surviving spouses of veterans who died in the line of duty or from a service-connected disability while an Arkansas resident. Administered through the Arkansas Division of Higher Education.

Arkansas's Academic Challenge Scholarship program has military service provisions to protect eligibility for qualifying children of military families whose parent was stationed out-of-state during the qualifying academic period. The clock-stopping provision helps military kids maintain scholarship eligibility despite frequent moves. Verify current eligibility rules with the AR Division of Higher Education.

Voting and Residency Rights

Arkansas honors your right to maintain your legal domicile and vote in your home state while stationed at Little Rock AFB or any other Arkansas installation.

Being stationed in Arkansas does not change your legal domicile. You may continue to vote in your home state via absentee ballot under UOCAVA. File your Federal Post Card Application (FPCA) at FVAP.gov to register and request absentee ballots.

If you wish to vote in Arkansas and claim AR as your home state, you may voluntarily change your domicile. Arkansas's full exemption of military retirement pay from income tax and the growing veteran community in Central Arkansas make it an increasingly popular domicile choice. Register to vote with your county clerk.

Military spouses may independently choose their state of domicile under the Veterans Benefits and Transition Act of 2018. The spouse's domicile does not have to match the servicemember's. Arkansas must honor this federal right.

Arkansas accepts the FPCA as both a voter registration and absentee ballot request for military voters. Submit your FPCA well in advance of any election. Contact your installation VAO for FPCA filing assistance.