- Minnesota does not tax military retirement pay, Survivor Benefit Plan payments, or active duty pay — making it financially attractive for military retirees.
- Disabled veterans with a 70%+ rating may exclude $150,000 of home market value from property taxes; 100% P&T veterans may exclude $300,000.
- The Minnesota GI Bill provides up to $15,000 for higher education, apprenticeships, on-the-job training, or certifications for eligible veterans and their families.
- Veterans can claim a nonrefundable tax credit of up to $750 if their adjusted gross income is below $37,500.
- 100% disabled veterans are eligible for free hunting and fishing licenses, free deer licenses, and priority in special hunt drawings.
- Minnesota operates seven state veterans homes and a network of County Veterans Service Officers available at no cost statewide.
- Income Tax Benefits
- Property Tax Exclusions
- Education Benefits
- Employment Benefits
- Veterans Homes & Housing
- Hunting, Fishing & Recreation
- Legal Assistance
- VA Healthcare in Minnesota
- How to Access Minnesota Veteran Benefits
- Frequently Asked Questions
Minnesota is widely regarded as one of the stronger states for veteran benefits in the Midwest. With no tax on military retirement pay, a generous property tax exclusion for disabled veterans, the state-funded Minnesota GI Bill, and a robust network of County Veterans Service Officers (CVSOs), the Land of 10,000 Lakes takes its commitments to veterans seriously. Minnesota is home to roughly 320,000 veterans, and the Minnesota Department of Veterans Affairs (MDVA) administers a wide range of programs to serve them.
This guide covers every major state benefit available to Minnesota veterans in 2026, along with the key federal VA programs that all veterans can access regardless of state.
Income Tax Benefits
Minnesota has a state income tax, but the state provides meaningful exemptions and credits that substantially reduce the tax burden for most veterans.
Military Retirement Pay — Tax-Free
Minnesota does not tax military retirement pay. Retired service members who qualify for this subtraction file Form M1M with their state return. Note that you cannot claim both the military retirement pay subtraction and the nonrefundable tax credit for past military service in the same tax year.
Active Duty Pay — Tax-Free
Minnesota does not tax military pay received by resident service members serving on active duty or in a reserve component of the U.S. Armed Forces.
Survivor Benefit Plan (SBP) — Tax-Free
SBP, RCSBP, and RSFPP annuities are not taxed in Minnesota. This is an important benefit for surviving spouses of military retirees.
Tax Credit for Past Military Service
Minnesota resident veterans with an adjusted gross income below $37,500 may qualify for a nonrefundable tax credit of up to $750. Claim this credit by completing Schedule M1C with your state tax return.
Combat Zone Tax Credit
Service members who served in a qualifying combat zone or hazardous duty area (including Afghanistan, Kosovo, the Arabian Peninsula, former Yugoslavia, and the Sinai Peninsula) and are Minnesota residents may receive a refundable tax credit of $120 for each month served in those areas. File Form M99 within 3.5 years of the original tax return due date. Surviving family members may also apply using Form M23.
Tax Relief for Deceased Active Duty Service Members
Minnesota provides tax forgiveness for the family of a service member who died while serving on active duty. The service member’s income is not taxed in the year of death, any unpaid prior-year tax debts from active duty periods are forgiven, and heirs may request a refund of income taxes paid during active duty (claims must be filed within seven years).
Property Tax Exclusions for Disabled Veterans
Minnesota’s Market Value Exclusion (MVE) program is one of the most generous disabled veteran property tax benefits in the Midwest. The program reduces the taxable market value of a qualifying veteran’s primary residence.
- 70% to 99% VA disability rating: $150,000 market value exclusion
- 100% permanent and total (P&T) disability: $300,000 market value exclusion
Some surviving spouses and primary caregivers of qualifying disabled veterans may also be eligible for these exclusions. Applications must be submitted to your local county assessor by December 15 to qualify for taxes payable in the following year.
This exclusion can translate into thousands of dollars in annual property tax savings depending on your county’s tax rate. A veteran in a metro area with a $300,000 exclusion and a 1.5% effective tax rate would save approximately $4,500 per year.
Contact the Minnesota Department of Veterans Affairs or your county assessor’s office for application forms and current eligibility requirements.
Education Benefits
Minnesota GI Bill
The Minnesota GI Bill is one of the state’s signature veteran education programs. It provides assistance of up to $15,000 total (up to age 62) for eligible veterans, currently serving troops, National Guard and Reserve members who served after September 11, 2001, and certain spouses and children.
The benefit can be used for:
- Higher education (college and university)
- On-the-job training and apprenticeships
- Licenses and certifications
Eligibility requirements include Minnesota residency and honorable service. Apply through the MDVA’s Minnesota GI Bill portal.
In-State Tuition
Active duty service members stationed in Minnesota and their dependents qualify for in-state tuition at Minnesota public colleges and universities. Honorably discharged veterans who were stationed in Minnesota at the time of discharge are also eligible for in-state tuition rates.
Dependent Education Benefits
Spouses and children of deceased or 100% permanently and totally disabled veterans may qualify for tuition waivers or educational assistance through the MDVA. Federal programs including DEA (Chapter 35), the Fry Scholarship, and Dependents’ Educational Assistance are also available at the federal level for eligible dependents.
Employment Benefits
Minnesota provides veterans with preference in state employment, similar to the federal veterans’ preference system. Veterans applying for state civil service positions receive preference points on qualifying examinations, giving them an advantage in the hiring process.
The Minnesota Department of Employment and Economic Development (DEED) operates American Job Centers with dedicated veteran employment representatives who provide:
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- Resume and job application assistance
- Career counseling and planning
- Job placement services
- Connection to training and vocational programs
Veterans with disabilities may also access vocational rehabilitation services through the VA’s Veteran Readiness and Employment (VR&E) program, which provides vocational training, education, and employment support to service-connected disabled veterans.
Vetlaw Program
The Minnesota Assistance Council for Veterans (MACV) operates the Vetlaw program, which provides free legal assistance to veterans facing civil legal issues that may create barriers to employment or housing. This includes help with evictions, child support, DUI/DWI records, driver’s license suspension, back taxes, and defaulted student loans. Contact MACV for eligibility and appointment information.
Veterans Homes and Housing
Minnesota operates a network of seven state veterans homes offering skilled nursing care, memory care, and residential services for eligible veterans:
- Minneapolis
- Hastings
- Luverne
- Fergus Falls
- Silver Bay
- Bemidji
- Preston
Veterans homes are open to honorably discharged veterans who meet medical and financial eligibility requirements. Contact the MDVA for current admission criteria and waitlist information.
For veterans pursuing homeownership, the VA home loan benefit remains one of the best financial tools available — offering $0 down payment and no PMI for eligible veterans. Learn how the VA loan works and how to use your benefit.
Hunting, Fishing, and Recreation
Minnesota offers some of the most comprehensive hunting and fishing benefits for disabled veterans of any state:
- 100% service-connected disabled veterans — free small-game license, one free deer license per year, first preference in special deer hunt drawings and lotteries, and a free permanent angling license
- Purple Heart recipients — preference in special hunt lotteries
- Active duty service members on leave who maintain Minnesota legal residency may hunt small game without a license (federal stamps still required)
- Veterans home patients — may fish without a license with written permission from the institution
- All resident veterans — benefit from resident-rate licensing, which is significantly less expensive than non-resident rates
Minnesota hunting and fishing licenses for residents are already far below non-resident prices, and the additional discounts for disabled veterans can represent hundreds of dollars in annual savings for outdoor-focused veterans.
Legal Assistance
Beyond the Vetlaw program, Minnesota veterans have access to free or low-cost legal assistance through several channels:
- County Veterans Service Officers (CVSOs) — help with VA claims and benefits appeals at no cost
- Minnesota State Bar Association Volunteer Lawyers Network — offers reduced-fee legal referrals
- Judge Advocate General (JAG) Corps — active duty service members can access legal assistance on-base
VA Healthcare in Minnesota
Minnesota veterans are served by the Minneapolis VA Health Care System and a network of community-based clinics throughout the state. The Minneapolis VA campus offers primary care, specialty care, mental health services, women’s health programs, and a full range of inpatient services.
Additional outpatient clinics operate in communities including Duluth, St. Cloud, Fargo/Moorhead, Rochester, and many others. Telehealth services have significantly expanded access for veterans in rural areas.
To enroll in VA healthcare, visit VA.gov or call 1-800-827-1000. Veterans in crisis can call 988, press 1, or text 838255 at any time.
How to Access Minnesota Veteran Benefits
Minnesota’s County Veterans Service Officers (CVSOs) are trained professionals located in virtually every county in the state. They provide free assistance with VA claims, state benefit applications, and referrals to community resources. Finding your local CVSO is the best first step for any veteran seeking benefits.
Key contacts:
- Minnesota Department of Veterans Affairs — state benefits and programs
- VA Regional Office — St. Paul — federal VA claims, education, home loan COE
- Minnesota GI Bill — through MDVA
This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the Department of Defense, the VA, or any government agency. For official benefit information, visit mn.gov/mdva or contact your County Veterans Service Officer.
Frequently Asked Questions
No. Minnesota fully exempts military retirement pay from state income tax. File Form M1M to claim the subtraction on your state tax return. Note that you cannot claim both the retirement pay subtraction and the tax credit for past military service in the same year.
Minnesota uses a Market Value Exclusion rather than a flat dollar exemption. Veterans with a 70%–99% rating get $150,000 of their home’s market value excluded from the taxable base. Veterans with a 100% P&T rating get $300,000 excluded. You must apply through your county assessor by December 15 for the following year’s taxes.
Eligible recipients include veterans who served after September 11, 2001, currently serving National Guard and Reserve members, and certain spouses and children of qualifying veterans. The maximum benefit is $15,000 and can be used for education, training, or certifications. Apply through the MDVA at mn.gov/mdva.
Veterans with a 100% service-connected disability rating are eligible for a free small-game license, one free deer license per year, first preference in special hunt drawings, and a free permanent angling license. Purple Heart recipients also receive lottery preference.
Minnesota operates seven state veterans homes in Minneapolis, Hastings, Luverne, Fergus Falls, Silver Bay, Bemidji, and Preston. Contact the Minnesota Department of Veterans Affairs at mn.gov/mdva for admission requirements and current availability.