Active Duty / Guard / Reserve Pay Income Tax Exemption
Military pay for active duty, National Guard, and Reserve members is fully exempt from ND state income tax.
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Apply directly through the official North Dakota agency.
About this benefit
Eligibility
Active duty service members, National Guard members, and Reservists who are North Dakota residents.
Covers
Military pay that is federally taxable is fully exempt from North Dakota state income tax.
Verified against official source
Last checked 2026-05-06 against www.tax.nd.gov. Always confirm current rates and rules with the North Dakota state agency before applying.
Other North Dakota Tax Benefits
Military Retirement Pay State Income Tax Exemption
100% of military retirement pay may be subtracted from North Dakota taxable income.
Full exemption of military retirement income
Disabled Veteran's Property Tax Credit
Property tax credit proportional to disability rating on the first ~$180,000 of homestead value for 50%+ disabled veterans.
Varies; potentially thousands per year at 100%
Paraplegic / Specially Adapted Housing Property Tax Exemption
Property tax exemption on the first $120,000 of homestead value for paraplegic veterans or those with VA adapted housing.
Property tax exemption on first $120,000 of value
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