Military Retirement Pay State Income Tax Exemption
100% of military retirement pay may be subtracted from North Dakota taxable income.
Apply now
Apply directly through the official North Dakota agency.
About this benefit
Eligibility
Retired members of U.S. Armed Forces, Reserve, or National Guard, and their surviving spouses.
Covers
100% of military retirement pay may be subtracted from North Dakota taxable income (effective for tax years 2019+). SBP, RCSBP, and RSFPP annuities are also exempt.
How to claim
Claimed on ND state income tax return.
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
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.
Full exemption of military pay from state income tax
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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