VA BENEFITS REFERENCE
Veteran Income Tax Benefits By State And Territory
Compare 3 verified veteran income tax programs with rating thresholds, qualifications, official citations and a downloadable CSV.
This table compares sourced income tax programs in 3 jurisdictions. It is not a complete inventory of every program. Conditions differ by state, locality, year and applicant category; read the full source before comparing dollar amounts or percentages.
| Jurisdiction | Program And Published Conditions | Rating Reference | Official Sources |
|---|---|---|---|
| Alabama | VA Disability Benefits Alabama excludes disability retirement payments and other benefits paid by the Department of Veterans Affairs from state income taxation. | See Program Rules | Source 1 |
| Arkansas | VA Disability Compensation The state veterans department states that VA disability compensation is excluded from Arkansas taxable income. | See Program Rules | Source 1 |
| Kentucky | Disability Income Kentucky veterans guidance excludes qualifying disability compensation and pension payments from taxable income. Military retirement has separate rules and should not be treated as VA disability compensation. | See Program Rules | Source 1 |
Taxable-value reductions, tax credits, fee waivers and cash payments are different measures. Do not treat the displayed descriptions as interchangeable annual savings.
Return To The State Benefits Directory
Official Sources
Last verified 2026-10-25. Source publication or legal effective dates are shown separately where available.
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Use this resource to understand published information. VA and the official decision control individual benefits.