The singer said she would provide help "until they get back up on their feet".
"I've always believed that charity begins at home," Parton said in a video statement.
At least seven people have been killed in the fires in Sevier County, Tennessee, and around the Great Smoky Mountains National Park.
Parton's Dollywood Foundation has set up a fund where people can donate to help victims of the fires.
"I know it's been a trying time for my people, and this assistance will help," she said.