KEY TAKEAWAYS
- North Dakota fully exempts military retirement pay from state income tax — one of the most valuable ongoing financial benefits for retired service members settling in the state.
- Disabled veterans with a 50% or higher service-connected rating qualify for a property tax credit applied against the first $9,000 of taxable homestead value, scaled to their disability percentage.
- Burial at the North Dakota Veterans Cemetery in Mandan is provided at no cost — including the plot, opening and closing, and headstone — for eligible veterans and qualifying dependents.
- Active duty pay is exempt from North Dakota income tax when the service member is stationed outside the state.
- Veterans can access free or discounted hunting and fishing licenses and preference points in state civil service hiring.
- Income Tax Benefits
- Property Tax Credits for Disabled Veterans
- Education Benefits
- Employment Preference
- Hunting, Fishing, and Recreation
- Burial and Memorial Benefits
- VA Facilities in North Dakota
- North Dakota Department of Veterans Affairs
- Frequently Asked Questions
North Dakota may be one of the country’s smaller states by population, but its commitment to veterans is substantial. The state offers a full military retirement pay exemption, a property tax credit scaled to disability rating, free burial services, and a range of quality-of-life benefits that make it a strong choice for veterans considering where to settle. This guide covers every major state-level benefit available to North Dakota veterans in 2026.
These benefits stack on top of federal VA benefits — including VA disability compensation, GI Bill education benefits, VA home loans, and VA healthcare. For a full picture of your federal benefits, visit VA.gov.
Income Tax Benefits
North Dakota levies a state income tax, but provides meaningful protections for military pay and retirement income:
- Military retirement pay: Fully exempt from North Dakota state income tax. This applies to retired pay, Survivor Benefit Plan (SBP) payments, and disability retirement pay. Retirees pay no state income tax on these income sources.
- Active duty pay — stationed out of state: If a North Dakota resident service member is stationed outside the state, their active duty military pay is exempt from state income tax for that period.
- VA disability compensation: Tax-free at both the federal and state levels, as with all states.
For active duty members stationed within North Dakota, standard state income tax rates apply to military pay. North Dakota’s income tax rates are among the lower end nationally, with a top marginal rate of 2.5%.
Property Tax Credits for Disabled Veterans
North Dakota’s Disabled Veteran’s Property Tax Credit is one of the state’s most significant financial benefits for veterans with service-connected disabilities. Key provisions:
- Eligibility: Veterans with a service-connected disability rating of 50% or higher, or veterans receiving Individual Unemployability (IU) resulting in payment at the 100% rate
- How the credit works: The credit equals the veteran’s disability percentage applied to the first $9,000 of taxable assessed value of the homestead. A veteran rated at 70% receives a credit equal to 70% of the tax on $9,000 of taxable value; a veteran rated at 100% receives the maximum credit
- Surviving spouse: An unremarried surviving spouse of a qualifying veteran is eligible for a credit applied against the first $9,000 of taxable value equal to the deceased veteran’s disability percentage
- Application deadline: February 1 of the tax year; apply through your county tax assessor’s office
North Dakota also offers a separate Primary Residence Credit of up to $1,600 available to all primary residence homeowners, which can stack with the disabled veteran’s credit for combined savings of up to $3,200 or more depending on assessed value and local mill rates.
Veterans with a paraplegic disability or those confined to a wheelchair may qualify for a full exemption of the homestead rather than a partial credit — contact the North Dakota Office of State Tax Commissioner for complete details.
Education Benefits
North Dakota’s state education benefits for veterans are focused primarily on National Guard members and survivors:
- North Dakota National Guard Tuition Assistance: National Guard members may qualify for state tuition assistance at North Dakota public colleges and universities. Contact the North Dakota National Guard Education Office for current program details and funding availability.
- Federal GI Bill at in-state rates: Under the federal Veterans Access, Choice, and Accountability Act, veterans using GI Bill benefits at North Dakota public institutions receive in-state tuition rates regardless of their state of residency, provided they enroll within three years of discharge.
- Yellow Ribbon Program: Several North Dakota institutions participate in the Yellow Ribbon Program, which can help bridge gaps in GI Bill coverage for private school costs or graduate programs. Search the VA’s Yellow Ribbon school finder for current North Dakota participants.
Employment Preference
North Dakota provides veterans’ preference in state civil service employment:
- Honorably discharged veterans who served during a period of armed conflict receive preference points added to their civil service examination scores
- Veterans with a service-connected disability or who were awarded the Purple Heart receive additional preference
- Contact North Dakota Human Resource Management Services for current preference rules and application procedures
Hunting, Fishing, and Recreation
- Hunting and fishing licenses: North Dakota offers reduced-cost or free licenses for qualifying disabled veterans. Contact the North Dakota Game and Fish Department for current eligibility thresholds and license fee schedules
- State parks: Veterans may receive discounted access to North Dakota state parks and recreational areas
- Veterans license plates: Available to veterans who meet North Dakota burial eligibility requirements; may include branch-of-service decals. Apply using SFN 51628 through the Motor Vehicle Division
- Gold Star license plates: Available to immediate family members of service members who died while serving on active duty
Burial and Memorial Benefits
The North Dakota Veterans Cemetery in Mandan provides burial services at no cost to eligible veterans. Covered at no charge: burial plot, opening and closing of the grave, and headstone or marker. Caskets, urns, and vaults must be purchased through a funeral home.
Eligibility mirrors VA National Cemetery requirements — honorable discharge from active duty or qualifying Reserve/National Guard service. Spouses and qualifying dependent children may also be interred at the cemetery.
- Military Funeral Honors: Coordinated through the North Dakota National Guard, including flag presentation and Taps when possible
- Commemorative Memorial Coin: The North Dakota Department of Veterans Affairs awards a commemorative coin to a family member during military funeral honors
- Federal headstones and markers: Available at no cost for eligible veterans buried in private cemeteries through the National Cemetery Administration
Contact the North Dakota Veterans Cemetery at 4606 Highway 1806, Mandan, ND 58554 | Phone: 701-667-1418.
VA Facilities in North Dakota
North Dakota veterans are served by the Fargo VA Medical Center and a network of Community Based Outpatient Clinics (CBOCs) located in Bismarck, Minot, Jamestown, Devils Lake, and Dickinson, providing access to VA healthcare without requiring travel to Fargo for routine care.
Find the nearest VA facility using the VA facility locator.
North Dakota Department of Veterans Affairs
The North Dakota Department of Veterans Affairs (NDDVA) assists veterans with state benefit claims, VA appeals, education benefits, and connecting to VA services. County Veterans Service Officers (CVSOs) are available across the state to provide free, in-person claims assistance.
Frequently Asked Questions
No. Military retirement pay is fully exempt from North Dakota state income tax. This includes retired pay, SBP payments, and disability retirement pay. VA disability compensation is also tax-free at both federal and state levels.
A service-connected disability rating of 50% or higher. The credit is proportional — a 70% rating generates a credit equal to 70% of the tax on the first $9,000 of taxable homestead value. Veterans rated at 100% (or receiving IU paid at 100%) receive the maximum credit. The annual application deadline is February 1 through your county assessor.
Yes — for eligible veterans. The plot, opening and closing of the grave, and headstone or marker are provided at no cost. Caskets, urns, and vaults are the family’s responsibility. Spouses and qualifying dependents may also be buried at the cemetery. Establish eligibility in advance by completing the Application and Eligibility for Burial form with the cemetery.
This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the Department of Defense, VA, or any government agency. Benefits and eligibility rules may change — verify current information with the North Dakota Department of Veterans Affairs or your County Veterans Service Officer.