Independent Guidance For Veterans & FamiliesNot Affiliated With The VA

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.

Independent Education · Official Sources · Last Verified October 25, 2026

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.

Download The Income Tax CSV

Income Tax Comparison
JurisdictionProgram And Published ConditionsRating ReferenceOfficial Sources
AlabamaVA Disability Benefits

Alabama excludes disability retirement payments and other benefits paid by the Department of Veterans Affairs from state income taxation.

See Program RulesSource 1
ArkansasVA Disability Compensation

The state veterans department states that VA disability compensation is excluded from Arkansas taxable income.

See Program RulesSource 1
KentuckyDisability 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 RulesSource 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.

Check The Source. Get Accredited Help.

Use this resource to understand published information. VA and the official decision control individual benefits.