→ Official Arizona Property Tax Source
Federal pay rates apply to all states. 2026 rates reflect the 2.8% COLA adjustment. Tax-free.
| Rating | Veteran Alone | With Spouse | Healthcare | Notes |
|---|---|---|---|---|
| 10% | $180.42 | $180.42 | PG 3 | — |
| 20% | $356.66 | $356.66 | PG 3 | — |
| 30% | $552.47 | $617.47 | PG 2 | — |
| 40% | $795.84 | $882.84 | PG 2 | — |
| 50% | $1,132.90 | $1,241.90 | PG 1 | — |
| 60% | $1,435.02 | $1,566.02 | PG 1 | — |
| 70% | $1,808.45 | $1,961.45 | PG 1 | TDIU Eligible |
| 80% | $2,102.15 | $2,277.15 | PG 1 | TDIU Eligible |
| 90% | $2,362.30 | $2,559.30 | PG 1 | TDIU Eligible |
| 100% | $3,938.58 | $4,158.17 | PG 1 | — |
Source: VA.gov 2026 Compensation Rate Tables. Rates verified January 2026.
- Arizona fully exempts military retirement pay and VA disability from state income tax (as of 2021).
- 100% P&T veterans receive a free annual Arizona State Parks pass.
- Full property tax exemption for 100% P&T veterans on primary residence.
- 10-point preference in state employment hiring for disabled veterans.
- Full Property Tax Exemption (100% P&T)
- Free Arizona State Parks Annual Pass (100% P&T)
- Military Retirement Pay — Fully State Income Tax Exempt
- Free DV License Plate
- Reduced Hunting & Fishing License Fee
- 10-point state employment preference
See Every Benefit You've Earned in Arizona
Enter your VA disability rating and get a personalized report showing all federal and Arizona state benefits, property tax exemptions, and discounts available to you.
▶ See Benefits at 70% 100% Benefits →All VA disability compensation is federal and applies equally in Arizona. The amounts below are 100% tax-free at both the federal and state level.