Minnesota Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax

The state benefits Minnesota gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.

Minnesota's main veteran property tax benefit is the Market Value Exclusion for Veterans with a Disability: $150,000 off the homestead's taxable market value at a 70%+ service-connected rating, or $300,000 at a 100% permanent and total rating, with $300,000 for qualifying surviving spouses and $150,000/$300,000 for VA-approved primary family caregivers. Military retirement pay is fully subtracted from Minnesota taxable income (or, for lower-income veterans, a credit of up to $750 for past military service can be claimed instead). Other state benefits include the Minnesota GI Bill (up to $5,000 a year, $15,000 lifetime), free fishing, deer and small-game licenses for 100%-disabled veterans, veterans preference points in public hiring, special veteran license plates and eight state veterans homes. (sources)

Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.

Property tax exemptions
Military retired pay tax
Other veteran benefits
Common questions

Property tax exemptions for veterans in Minnesota

Minnesota property tax benefits for veterans and surviving spouses (checked November 4, 2026)
Benefit	Who qualifies	Amount	How to apply	Source
Market Value Exclusion for Veterans with a Disability (100% permanent and total)	Honorably discharged veteran with a 100% permanent and total service-connected disability rating who owns and occupies a homesteaded property on December 31. No age or income limit.	$300,000 excluded from the homestead's taxable market value (house, garage and 1 surrounding acre for agricultural homesteads). Replaces, rather than stacks with, the regular Homestead Market Value Exclusion.	Apply to the county assessor by December 31 for taxes payable the next year. Provide a DD214 (or other discharge papers) and VA documentation of disability status. The property must already be classified as homestead. The county veterans service officer helps with the rating paperwork.	Minnesota Department of Revenue
Market Value Exclusion for Veterans with a Disability (70% or greater)	Honorably discharged veteran with a service-connected disability rating of 70% or higher who owns and occupies a homesteaded property on December 31. No age or income limit.	$150,000 excluded from the homestead's taxable market value. Replaces the regular Homestead Market Value Exclusion.	Apply to the county assessor by December 31 for taxes payable the next year. Provide a DD214 and VA disability documentation. The property must already be classified as homestead.	Minnesota Department of Revenue
Market Value Exclusion - surviving spouse	Surviving spouse of a veteran who had a 100% permanent and total rating (even if the veteran never received the exclusion), OR a surviving spouse receiving VA Dependency and Indemnity Compensation, OR a surviving spouse of a service member who died of a service-connected cause on active duty. The spouse must own and occupy a homestead.	$300,000 market value exclusion until the spouse remarries or sells, transfers or otherwise disposes of the property. One move is allowed: the exclusion carries to a new homestead if its estimated market value is equal to or lower than the original property's value at sale and the spouse applies by December 31.	Apply to the county assessor by December 31; surviving spouses must apply to keep receiving the exclusion. Provide VA benefit letters or DIC verification. Spouses of service members who died on active duty also provide a DD1300 or DD2064 and verification of the date of death. A spouse of a service member who died on active duty must file the first-time application within two years of the service member's death (Minn. Stat. 273.13, subd. 34(i)).	Minnesota Department of Revenue
Market Value Exclusion - primary family caregiver	A person approved by the U.S. Department of Veterans Affairs as primary family caregiver (Program of Comprehensive Assistance for Family Caregivers) for an honorably discharged veteran with a 70%+ service-connected disability, who owns and occupies a homestead by December 31. The veteran cared for cannot also own homestead property.	$300,000 if the veteran is rated 100% permanent and total; $150,000 if the veteran is rated 70% or greater.	Apply to the county assessor by December 31. Provide certification of caregiver-program eligibility and information verifying the veteran's discharge and disability status.	Minnesota Department of Revenue

Is military retired pay taxed in Minnesota?

Minnesota state income tax on military retired pay (checked November 4, 2026)
Treatment	Amount or limit	Source
Fully exempt. Military retirement pay, including pensions, reserve-component retirement pay and Survivor Benefit Plan payments (including amounts paid to a former spouse under a court order), is subtracted from Minnesota taxable income and from alternative minimum taxable income to the extent it is included in federal AGI (Minn. Stat. 290.0132, subd. 21). Claim it on Schedule M1M. You cannot claim it in the same year as the Credit for Past Military Service. Pensions earned only as a dual-status technician do not qualify.	No dollar cap: 100% of qualifying military retirement pay included in federal AGI.	revenue.state.mn.us

For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.

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Other Minnesota veteran benefits

Vehicles and license plates

Minnesota: vehicles and license plates for veterans
Benefit	Who qualifies	Amount	Source
Special veteran license plates	Honorably discharged veterans (with a certified copy of discharge papers) who own a passenger car, recreational motor vehicle, one-ton pickup or motorcycle. Designs include Vietnam, Korean, World War, Gulf War, Iraq/Afghan War, GWOT, Pearl Harbor Survivor, Combat Wounded (Purple Heart), Bronze Star, Silver Star and Woman Veteran.	The standard special-plate fee (Minn. Stat. 168.12, subd. 5) plus the regular registration tax, paid only when plates are issued; $5 to transfer plates to another vehicle.	revisor.mn.gov
Motor vehicle registration tax exemption	A disabled war veteran whose vehicle was furnished in whole or in part by the U.S. government; a former prisoner of war whose vehicle bears EX-POW plates; and active-duty service members during active service plus 90 days, if they apply and the vehicle is not driven in Minnesota during that period except while on leave.	Full exemption from the motor vehicle registration tax	revisor.mn.gov

Hunting, fishing and other licenses

Minnesota: hunting, fishing and other licenses for veterans
Benefit	Who qualifies	Amount	Source
Free permanent fishing (angling) license for disabled veterans	Minnesota resident veteran (as defined in Minn. Stat. 197.447) with a 100% service-connected disability as defined by the VA.	Permanent angling license with no fee	revisor.mn.gov
Free deer (firearms or archery) and small-game hunting licenses for disabled veterans	Minnesota resident veteran with a 100% service-connected disability as defined by the VA. The DNR commissioner issues, on request, a permanent card documenting the status, or the driver's license/ID designation can be used.	Deer license (firearms or archery) and small-game license with no fee	revisor.mn.gov

Education

Minnesota: education for veterans
Benefit	Who qualifies	Amount	Source
Minnesota GI Bill: postsecondary educational assistance	Minnesota residents who are veterans who served honorably in any branch at any time; non-veterans with 5+ cumulative years of honorable Guard/Reserve service, some of it on or after September 11, 2001; surviving spouses or children of service members who died as a direct result of military service; and spouses or children of veterans with a total and permanent service-connected disability (the family-member categories only if eligible for federal Chapter 33 or 35 benefits). Must be enrolled at an eligible institution, making satisfactory academic progress, and have completed the FAFSA.	Cost of attendance minus Pell, the state grant and federal military/veteran education benefits, up to $5,000 per state fiscal year and $15,000 lifetime. Separate apprenticeship and on-the-job training benefits pay up to $3,000 per year each, capped at $5,000 per year in aggregate. All benefits are paid on a funds-available basis.	revisor.mn.gov

Employment

Minnesota: employment for veterans
Benefit	Who qualifies	Amount	Source
Veterans preference in public employment	Veterans as defined in Minn. Stat. 197.447 applying under county, city, town, school district and other political-subdivision civil service. A disabled veteran has a compensable service-connected disability; for promotional preference the rating must be 50% or more. Surviving spouses of deceased veterans, and spouses of disabled veterans who cannot use the preference themselves, may also use it.	10 points added to a passing competitive open examination score for a nondisabled veteran; 15 points for a disabled veteran; 5 points on a first promotional exam for a disabled veteran. Veterans are ranked ahead of non-veterans with the same score. Veterans also get dismissal protections under Minn. Stat. 197.46-197.481.	revisor.mn.gov

State veterans homes

Minnesota: state veterans homes for veterans
Benefit	Who qualifies	Amount	Source
Minnesota Veterans Homes	Veterans who served in a Minnesota regiment, were credited to Minnesota or meet the state residency rules, and who lack adequate means of support and cannot care for themselves because of wounds, disease, old age or infirmity. Spouses and surviving spouses of eligible veterans aged 55 or older who meet the residency and admission rules may also be admitted (Minn. Stat. 198.022).	Eight state veterans homes (Bemidji, Fergus Falls, Hastings, Luverne, Minneapolis, Montevideo, Preston and Silver Bay) offering skilled nursing, dementia/Alzheimer's units, domiciliary care and rehabilitation.	mn.gov

Other benefits

Minnesota: other benefits for veterans
Benefit	Who qualifies	Amount	Source
Credit for Past Military Service (income tax credit)	Veterans (including National Guard and Reserves) separated from service before the end of the tax year who served at least 20 years, OR have a 100% total and permanent service-connected disability rating, OR were honorably discharged and receive military retirement pay. Minnesota adjusted gross income must be under $37,500. Cannot be claimed in the same year as the military retirement pay subtraction.	Nonrefundable credit of up to $750, reduced by 10% of adjusted gross income over $30,000 (fully phased out at $37,500). Claimed on Schedule M1C.	revenue.state.mn.us

Common questions

Does Minnesota have a property tax exemption for disabled veterans?

Minnesota lists 4 veteran property tax benefits. The main one: Market Value Exclusion for Veterans with a Disability (100% permanent and total). Who qualifies: Honorably discharged veteran with a 100% permanent and total service-connected disability rating who owns and occupies a homesteaded property on December 31. No age or income limit.. Amount: $300,000 excluded from the homestead's taxable market value (house, garage and 1 surrounding acre for agricultural homesteads). Replaces, rather than stacks with, the regular Homestead Market Value Exclusion. (Minnesota Department of Revenue - Market Value Exclusion for Veterans with a Disability).

How do I apply for the Minnesota veteran property tax exemption?

Apply to the county assessor by December 31 for taxes payable the next year. Provide a DD214 (or other discharge papers) and VA documentation of disability status. The property must already be classified as homestead. The county veterans service officer helps with the rating paperwork. (Minnesota Department of Revenue - Market Value Exclusion for Veterans with a Disability).

Does Minnesota tax military retirement pay?

Fully exempt. Military retirement pay, including pensions, reserve-component retirement pay and Survivor Benefit Plan payments (including amounts paid to a former spouse under a court order), is subtracted from Minnesota taxable income and from alternative minimum taxable income to the extent it is included in federal AGI (Minn. Stat. 290.0132, subd. 21). Claim it on Schedule M1M. You cannot claim it in the same year as the Credit for Past Military Service. Pensions earned only as a dual-status technician do not qualify. Amount or limit: No dollar cap: 100% of qualifying military retirement pay included in federal AGI. (revenue.state.mn.us).

What other benefits do veterans get in Minnesota?

Minnesota GI Bill: postsecondary educational assistance (revisor.mn.gov); Credit for Past Military Service (income tax credit) (revenue.state.mn.us); Free permanent fishing (angling) license for disabled veterans (revisor.mn.gov); Free deer (firearms or archery) and small-game hunting licenses for disabled veterans (revisor.mn.gov); Veterans preference in public employment (revisor.mn.gov); Special veteran license plates (revisor.mn.gov); Motor vehicle registration tax exemption (revisor.mn.gov); Minnesota Veterans Homes (mn.gov). Who qualifies and the amounts are in the tables above.

Sources

Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.

Minnesota senior property tax relief → Minnesota state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →