Military Retirement Pay State Income Tax Exemption
Military retirement pay equal to the federally-taxable amount may be deducted from North Dakota taxable income (effective for tax years 2019+).
At a glance
- Benefit type
- Tax Benefits — North Dakota
- Who it's for
- Veterans, Survivors
- VA rating needed
- No rating requirement
- Estimated value
- Full exemption of military retirement income
- Where it applies
- North Dakota
- Last verified
- May 12, 2026
What is Military Retirement Pay State Income Tax Exemption?
Military Retirement Pay State Income Tax Exemption is a North Dakota tax benefits benefit for veterans, survivors. Military retirement pay equal to the federally-taxable amount may be deducted from North Dakota taxable income (effective for tax years 2019+). The listed value is Full exemption of military retirement income.
Who qualifies
- Available to any veteran
- North Dakota residency
Who is eligible
Eligibility
Retired members of U.S. Armed Forces, Reserve, or National Guard, and their surviving spouses.
What Military Retirement Pay State Income Tax Exemption covers
Covers
Military retirement pay equal to the federally-taxable amount may be deducted from North Dakota taxable income (effective for tax years 2019+). SBP, RCSBP, and RSFPP annuities are also exempt.
How to apply for Military Retirement Pay State Income Tax Exemption
How to claim
Claimed on ND state income tax return.
Verified information & sources
Last verified: May 12, 2026
Official source: tax.nd.gov
Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.
Frequently asked questions about Military Retirement Pay State Income Tax Exemption
Who qualifies for Military Retirement Pay State Income Tax Exemption?▾
How much is Military Retirement Pay State Income Tax Exemption worth?▾
How do I apply for Military Retirement Pay State Income Tax Exemption?▾
Where can I verify Military Retirement Pay State Income Tax Exemption?▾
Other North Dakota Tax Benefits
Military Pay Income Tax Treatment (Active Duty / Guard / Reserve)
ND residents serving on active duty, National Guard, or Reserve may be eligible for specific deductions; nonresidents stationed in ND with no other ND income generally are not required to file.
Varies; see ND Tax Commissioner Military Service Members guideline
Disabled Veteran's Property Tax Credit
Property tax credit proportional to disability rating, up to $9,000 of taxable valuation (~$200,000 true and full value) of the homestead, for 50%+ disabled veterans.
Varies; potentially thousands per year at 100%
Paraplegic / Specially Adapted Housing Property Tax Exemption
Property tax exemption on the homestead (fixtures, buildings, improvements) for paraplegic disabled veterans or veterans awarded VA specially adapted housing, including unremarried surviving spouses.
Property tax exemption on a portion of homestead value (cap per NDCC 57-02-08)
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