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+).
State BenefitNorth DakotaTax Benefits
Verified May 12, 2026 against tax.nd.gov
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
- Veterans
- Survivors
- 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.
How VetUnlock verifies benefitsFrequently asked questions about Military Retirement Pay State Income Tax Exemption
Who qualifies for Military Retirement Pay State Income Tax Exemption?
Military Retirement Pay State Income Tax Exemption is for Veterans, Survivors; available to any veteran; north dakota residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Pay State Income Tax Exemption worth?
The listed value is Full exemption of military retirement income. Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Pay State Income Tax Exemption?
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Military Retirement Pay State Income Tax Exemption?
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.
Other North Dakota Tax Benefits
- Military Pay Income Tax Treatment (Active Duty / Guard / Reserve)Varies; see ND Tax Commissioner Military Service Members guidelineND 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.
- Disabled Veteran's Property Tax CreditVaries; potentially thousands per year at 100%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.
- Paraplegic / Specially Adapted Housing Property Tax ExemptionProperty tax exemption on a portion of homestead value (cap per NDCC 57-02-08)Property tax exemption on the homestead (fixtures, buildings, improvements) for paraplegic disabled veterans or veterans awarded VA specially adapted housing, including unremarried surviving spouses.