KEY TAKEAWAYS
- Minnesota does not tax military retired pay, active-duty or reserve pay, or SBP annuities. TSP withdrawals are taxed.
- Veterans rated 70% or higher can exclude $150,000 of their home’s market value from property tax, and 100% permanent and total veterans $300,000. Apply with your county assessor by December 31.
- The Minnesota GI Bill pays up to $15,000 for college (up to $5,000 a year), apprenticeships and on-the-job training, or licensing and certification costs.
- Veterans who are 100% permanent and total or paid for individual unemployability pay no vehicle registration or title fees on two vehicles, no sales tax on one, and no driver’s license fees.
- Any veteran with a service-connected rating, at any percentage, can get a free annual state park permit, as can service members and their dependents and Purple Heart recipients.
- Minnesota Veteran Benefits by Disability Rating
- Minnesota Income Tax Benefits
- Disabled Veterans’ Homestead Market Value Exclusion
- Education Benefits
- Employment and Business Benefits
- Vehicles, Licenses and Plates
- Parks, Hunting and Fishing
- Minnesota Veterans Homes
- Minnesota State Veterans Cemeteries
- Surviving Spouse and Family Benefits
- Financial Help, Legal Aid and Health Care
- How to Claim Minnesota Veteran Benefits
- Frequently Asked Questions
Minnesota has a state income tax, but it doesn’t touch military retired pay, active-duty pay or survivor annuities, and its property tax break for disabled veterans is one of the largest in the Midwest. The state also runs its own GI Bill, seven veterans homes and four veterans cemeteries, and it waives vehicle fees and sales tax for the most seriously disabled veterans. This guide covers each benefit for 2026, who qualifies and where to apply.
Minnesota Veteran Benefits by Disability Rating
Several of Minnesota’s benefits depend on your VA rating. Here’s what each level adds, using the rules covered below:
| Your status | What you get in Minnesota |
|---|---|
| Any honorably discharged veteran | Tax-free military retired pay, Minnesota GI Bill, state hiring preference, veteran designation on your license, veterans homes and cemeteries |
| Any service-connected rating | Free annual state park permit |
| 50% or higher (permanent) | 15 preference points on state civil service exams instead of 10 |
| 70% to 99% | $150,000 homestead market value exclusion |
| 100% permanent and total | $300,000 market value exclusion, which a surviving spouse can keep |
| 100% P&T or individual unemployability | No registration or title fees on two vehicles, no sales tax on one, no driver’s license or ID fees |
| 100% service-connected | Free small-game license, one free deer license a year, free permanent angling license, first preference in hunt lotteries |
If you’re close to the 70% line, it’s worth knowing how VA combines ratings. Our guide to a 70% VA disability rating explains what you get at that level and how to get there.
Minnesota Income Tax Benefits
Military Retired Pay and Survivor Annuities
Minnesota lets you subtract all military retired pay that’s taxable on your federal return, whether it comes from active-duty or reserve service, along with Survivor Benefit Plan payments. There’s no dollar cap. You claim it on Schedule M1M. Our military pension calculator shows what your federal retired pay will be. Military disability retirement pay, VA disability compensation and DIC aren’t taxable at all.
Thrift Savings Plan withdrawals are a different matter: they’re taxed in Minnesota like any other retirement account.
Active-Duty and Reserve Pay
Minnesota residents don’t pay state tax on federal active-duty military pay, and Guard and Reserve pay is also exempt. Nonresident military spouses don’t pay Minnesota tax on wages they earn in the state when the service member is stationed there on orders and both keep a residence in another state.
Credit for Past Military Service
Veterans with federal adjusted gross income under $37,500 can claim a nonrefundable credit of up to $750 on Schedule M1C if they meet one of these: they receive military retired pay after an honorable discharge, they served at least 20 years, or they have a 100% permanent and total service-connected rating. You can’t take this credit and the retired pay subtraction in the same year, so compare the two.
Combat Zone Credit and Filing Extensions
Residents who served in a combat zone or qualified hazardous duty area and received combat pay can claim a refundable credit of $120 for each month, counting partial months, even if they owe no tax. File Form M99 or apply online within 3½ years of the original due date. A surviving spouse can claim it for a service member who died in the zone.
Service members in a combat zone have 180 days after leaving to file and pay. Those stationed outside the U.S. have until October 15 to file, though 90% of any tax due must be paid by April 15. If a service member dies on active duty, Minnesota forgives the income tax for the year of death and any unpaid tax from earlier active-duty years, and heirs can claim refunds of tax paid while on active duty.
Disabled Veterans’ Homestead Market Value Exclusion
Instead of a flat dollar exemption, Minnesota removes part of your home’s market value before property tax is calculated:
- $150,000 exclusion for veterans with a service-connected rating of 70% to 99%
- $300,000 exclusion for veterans rated 100% permanent and total
The home must have homestead classification, and you must own and live in it by December 1. Apply at your county assessor’s office by December 31 for the exclusion to apply to taxes payable the following year. Veterans rated below 100% may be asked to reapply each year; if your rating rises to permanent and total, reapply right away to move to the larger exclusion.
Surviving Spouses and Caregivers
The $300,000 exclusion also goes to:
- The surviving spouse of a veteran who was rated 100% permanent and total, including a veteran who died after December 31, 2011 without having applied
- An unremarried surviving spouse receiving Dependency and Indemnity Compensation
- The surviving spouse of a service member who died on active duty from a service-connected cause
- A primary family caregiver approved under VA’s Program of Comprehensive Assistance for Family Caregivers, when the veteran they care for doesn’t own a Minnesota homestead (the $150,000 level applies if the veteran is rated 70% to 99%)
A surviving spouse keeps the exclusion until they remarry or sell or otherwise dispose of the home, and can carry it over once to a new home after a sale.
Education Benefits
Minnesota GI Bill
The Minnesota GI Bill pays up to $15,000 in total to Minnesota residents who qualify, on top of any federal GI Bill. It can be used three ways:
| Use | How much |
|---|---|
| College or university | Up to $5,000 per academic year; you must be under 62, file the FAFSA and reapply each year |
| On-the-job training or apprenticeship | Up to $2,000 per fiscal year to the apprentice, paid every six months, plus payments to the employer |
| Licenses and certifications | Reimbursement of up to $3,000 per state fiscal year for exam, license and course fees |
Eligible are current service members, honorably discharged veterans of any branch, former members with at least five years of honorable service (some of it on or after September 11, 2001), and the spouses and children of service members who died or have a 100% permanent and total service-connected rating. Apply online through the Minnesota Department of Veterans Affairs.
Free Tuition for Survivors
Unremarried surviving spouses and children of a service member or veteran who died on active duty or from a service-connected condition get free tuition at Minnesota public colleges and universities through a bachelor’s degree. The Minnesota Department of Veterans Affairs also pays $750 a year toward fees, books, and room and board.
Guard Tuition, Grants and Campus Help
- National Guard State Tuition Reimbursement: Minnesota Guard members can be reimbursed up to 100% of University of Minnesota resident undergraduate tuition (up to $18,000 a year) and 75% of graduate tuition (up to $28,000 a year), for up to 144 semester credits. Spouses of members with eight good years can use part of the balance, and survivors of members killed on state active duty are covered.
- Veteran Education Assistance: a one-time $750 grant toward a bachelor’s degree for veterans who used up their federal GI Bill.
- Campus veterans coordinators: regional Higher Education Veterans Program staff help with payment extensions while benefits are pending, military transfer credit and withdrawing for deployment.
- Federal benefits come first: see our Post-9/11 GI Bill guide for what VA pays.
Employment and Business Benefits
- Veterans Preference Act: on a public employer’s competitive exam, 10 points are added to a passing score for veterans and 15 points for veterans with a permanent service-connected rating of 50% or more. Disabled veterans also get 5 points on a first promotional exam. The preference can pass to a surviving spouse or to the spouse of a disabled veteran who can’t qualify for the job.
- Private employers: may give hiring and promotion preference to veterans, the spouse of a veteran with a total and permanent disability, and surviving spouses.
- State employee military leave: Guard and Reserve members who work for the state get 15 days of paid military leave a year without losing seniority or leave.
- State active duty pay: Guard members on state active duty are paid at the federal rate for their grade, never less than $130 a day, plus a 5% pension stipend.
- Veteran-owned businesses: certified Minnesota businesses at least 51% owned and run by a veteran get a 12% preference on state purchasing and construction bids.
- CareerForce: veterans employment representatives at CareerForce locations help with resumes, job searches, licensing and training.
Vehicles, Licenses and Plates
- Fee and tax exemptions: veterans with a 100% permanent and total rating or individual unemployability pay no registration fee on up to two vehicles, no title fee on up to two vehicles bought since January 1, 2024, and no sales tax on one vehicle bought on or after July 1, 2024. They also pay no fees for any driver’s license, ID card or endorsement.
- VA grant vehicles: a vehicle bought or adapted with a VA grant is also exempt from sales tax.
- Veteran designation: available on a license or ID for veterans with at least 181 days of active duty and an honorable or general discharge, and for Guard and Reserve retirees.
- No-expiration rule: a service member who entered active duty with a valid Minnesota license, and the spouse and dependents stationed with them, don’t have to renew until after separation; request an extension letter from Driver and Vehicle Services.
- Active-duty registration tax: service members on active duty are exempt from the vehicle registration tax until 90 days after release.
- Plates: Minnesota offers 24 military and veteran designs, including free Medal of Honor and Gold Star Family plates, a Combat Wounded plate for Purple Heart recipients and a Proud to Be a Veteran plate.
Parks, Hunting and Fishing
- Free state park permit: veterans with any service-connected rating (bring your VA benefit summary letter), service members and their dependents, and Purple Heart recipients can get a free annual permit at any staffed state park office.
- 100% disabled veterans: a free small-game license with no state stamps, one free either-sex deer license a year, a free permanent angling license that needs no trout stamp, and first preference in special deer, antlerless deer, bear and turkey lotteries.
- Service members on leave: Minnesota residents stationed out of state can hunt small game and fish without a license, and get deer, bear, turkey and wolf licenses at no charge, while home on leave.
- Recently discharged: residents discharged from active duty overseas in the past 24 months can hunt small game and fish free and get one free deer license a year.
- Purple Heart recipients: buy licenses normally but get first preference in the hunt lotteries.
- Stationed in Minnesota: service members stationed in the state, training at Camp Ripley or serving in the Minnesota Guard can buy resident licenses.
- Veterans Campground on Big Marine Lake: cabins, tent and RV sites near the St. Croix for service members, veterans and their families (651-433-2699).
Minnesota Veterans Homes
Minnesota runs seven veterans homes with skilled nursing and specialized dementia care for veterans and their spouses, plus domiciliary programs for veterans who can live independently.
| Home | Address | Phone |
|---|---|---|
| Bemidji | 920 Anne Street N.W. | 218-364-8900 |
| Fergus Falls | 1821 North Park Street | 218-736-0400 |
| Luverne | 1300 North Kniss Avenue | 507-283-6200 |
| Minneapolis | 5101 Minnehaha Avenue South | 612-548-5700 |
| Montevideo | 2190 William Avenue | 320-435-4710 |
| Preston | 1864 First Minnesota | 507-808-8910 |
| Silver Bay | 56 Outer Drive | 218-353-8700 |
The domiciliary programs are at Hastings (1200 18th Street East, 651-539-2400) and Minneapolis. Call 651-539-2500 for more information on the domiciliary program.
Minnesota State Veterans Cemeteries
Burial is free for an eligible veteran, including the gravesite or niche, liner, headstone and perpetual care. A spouse or eligible child is charged $1,002, which can’t be prepaid. Eligibility matches VA national cemetery rules.
| Cemetery | Address | Phone |
|---|---|---|
| Little Falls | 15550 Highway 115, Little Falls | 320-616-2527 |
| Duluth | 4777 Highway 53, Saginaw | 218-520-0120 |
| Preston | 715 Highway 52, Preston | 507-765-7320 |
| Redwood Falls | 33752 Noble Avenue, Redwood Falls | 507-709-4390 |
Surviving Spouse and Family Benefits
Survivors keep more in Minnesota than in many states: the $300,000 homestead exclusion, free tuition and the $750 annual allowance for spouses and children of those who died in service or from a service-connected condition, Minnesota GI Bill eligibility, and tax-free SBP annuities. Unremarried surviving spouses can also apply for subsistence assistance. For the federal side, read our guide to VA benefits for surviving spouses and the Survivor Benefit Plan.
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Financial Help, Legal Aid and Health Care
- Subsistence Assistance: temporary help with rent or mortgage, utilities, health insurance premiums and personal needs for veterans or unremarried surviving spouses who can’t work for at least 30 days because of a disabling medical condition. It’s based on income and assets.
- Veteran’s Relief Grant: a once-per-lifetime grant to get through a financial crisis and prevent homelessness, paid directly to vendors.
- Legal aid: the Minnesota Assistance Council for Veterans runs Vetlaw, part of its housing and employment services for veterans facing homelessness (833-222-6228).
- VA health care: the Minneapolis VA Health Care System and community clinics around the state serve Minnesota veterans. If you haven’t enrolled, apply online; our VA health care enrollment guide explains priority groups.
How to Claim Minnesota Veteran Benefits
- Get your documents: your DD-214 and, for rating-based benefits, a current VA benefit summary letter.
- Contact your County Veterans Service Officer: every county has one, and Tribal Veterans Service Officers serve Native American veterans. Their help is free. Call LinkVet at 888-546-5838 to find yours.
- Apply where each benefit is run: your county assessor for the market value exclusion (by December 31), the Department of Revenue for tax subtractions and credits, the Minnesota Department of Veterans Affairs for the GI Bill and survivor education, Driver and Vehicle Services for fees and plates, and the DNR for licenses and park permits.
- File federal claims too: the St. Paul VA Regional Benefit Office handles VA compensation, pension and education claims for Minnesota.
RELATED READING
Wisconsin Veteran Benefits: Complete State Guide →
Minnesota’s neighbor also exempts military retired pay and has its own disabled veteran property tax credit.
70% VA Disability: Pay and Benefits →
The rating that opens Minnesota’s $150,000 homestead exclusion.
Compare Minnesota with every other state’s taxes, tuition and property tax benefits.
Frequently Asked Questions
No. Minnesota lets you subtract all military retired pay that is taxable on your federal return, from active or reserve service, plus Survivor Benefit Plan payments, with no dollar cap. Claim it on Schedule M1M. TSP withdrawals are still taxed.
The homestead market value exclusion removes $150,000 of your home’s market value from property tax if you are rated 70% to 99%, and $300,000 if you are rated 100% permanent and total. Apply with your county assessor by December 31 for taxes payable the next year.
Yes. The surviving spouse of a veteran rated 100% permanent and total, an unremarried spouse receiving DIC, or the spouse of a service member who died on active duty can receive the $300,000 exclusion. It continues until the spouse remarries or sells or disposes of the home.
Up to $15,000 in total. College students can receive up to $5,000 per academic year if they are under 62, apprentices up to $2,000 per fiscal year, and licensing and certification costs are reimbursed up to $3,000 per fiscal year.
A veteran rated 100% permanent and total gets the $300,000 homestead exclusion, no vehicle registration or title fees on two vehicles and no sales tax on one, free driver’s license and ID fees, a free annual state park permit, free small-game and deer licenses, a free permanent angling license, and survivor education benefits for the family.
Veterans with any service-connected disability rating can get a free annual state park permit by bringing their VA benefit summary letter and photo ID to a staffed park office. Service members and their dependents and Purple Heart recipients qualify too.
Minnesota has seven: Bemidji, Fergus Falls, Luverne, Minneapolis, Montevideo, Preston and Silver Bay. Hastings and Minneapolis also run domiciliary programs for veterans who can live independently.
This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the State of Minnesota, the Minnesota Department of Veterans Affairs, VA or any government agency. Benefits and eligibility rules change; confirm current details with the Minnesota Department of Veterans Affairs, your County Veterans Service Officer or the official Minnesota state benefits summary before you apply.