Veteran taxes by state
Minnesota veteran taxes
How Minnesota treats military retired pay and Survivor Benefit Plan annuities in its income tax, and its property tax and vehicle registration relief for disabled veterans — from the state’s own pages.
On this page5 sections
- Military retired pay
- Exempttax year 2025
- SBP annuities
- Exempt
- Property tax
- Exemption or credit
- Vehicle registration
- Fee waiver or discount
Military retired pay in Minnesota
Exempttax year 2025Sources 1, 2
Minnesota subtracts, to the extent included in federal adjusted gross income, military retirement pay computed under 10 U.S.C. §§ 1401 to 1414 (active component) and § 12733 (reserve component), with no cap, age or income test (Minn. Stat. § 290.0132, subd. 21; claimed on Schedule M1M). A taxpayer who takes this subtraction cannot also claim the Credit for Past Military Service.
Survivor Benefit Plan annuities
ExemptSources 3, 2
The same subtraction expressly covers Survivor Benefit Plan payments under 10 U.S.C. §§ 1447 to 1455, including payments to a former spouse under a court order, to the extent included in federal adjusted gross income (Minn. Stat. § 290.0132, subd. 21).
Property tax relief for disabled veterans
Exemption or creditSources 4, 5, 6
Minnesota excludes $150,000 of market value from the taxable market value of the homestead of an honorably discharged veteran with a service-connected disability of 70% or more certified by the U.S. Department of Veterans Affairs, and $300,000 for a total (100%) and permanent disability (Minn. Stat. § 273.13, subd. 34). The veteran applies to the county assessor by December 31 for taxes payable the next year; for an agricultural homestead only the house, garage and one surrounding acre qualify.
- If the veteran owns no Minnesota homestead, the homestead of the veteran’s primary family caregiver approved under the VA caregiver program can receive the exclusion the veteran would qualify for.
- By July 1, the county veterans service officer certifies each recipient’s disability rating and address to the assessor.
Surviving spouse
- The spouse of a veteran with a total (100%) and permanent disability, a spouse awarded dependency and indemnity compensation, or the spouse of a service member who died of a service-connected cause in active service receives the $300,000 exclusion while holding title to and permanently residing in the homestead, until the spouse remarries or sells or disposes of it.
- One move of the exclusion to a new homestead of equal or lower value is allowed.
- The spouse of a service member who died in active service must first apply within two years of the death (Minn. Stat. § 273.13, subd. 34(c), (d), (i), (k), (n)).
Vehicle registration for disabled veterans
Fee waiver or discountSources 7, 8, 9, 10
Minnesota exempts a passenger automobile, one-ton pickup truck, motorcycle or recreational vehicle registered by a veteran with a 100% total and permanent service-connected disability rating from registration taxes, administrative fees, filing fees and surcharges, and plate, validation sticker and transfer fees, for no more than two vehicles at a time (Minn. Stat. § 168.012, subd. 13; § 171.01, subd. 51). The exemption also applies to a vehicle registered jointly with a spouse or domestic partner; fees for personalized plates and required special-plate contributions are not waived.
- A motor vehicle furnished free, in whole or in part, by the U.S. government to a disabled war veteran is exempt from the registration tax (Minn. Stat. § 168.031(b)).
- The statute does not tie the exemption to a particular plate.
Sources
Each source was read on October 28, 2026 on the state’s own site, the normal way. The numbers in the sections above point here.
- Military Pension Subtraction
- 290.0132 Individuals, estates, and trusts; subtractions from federal taxable income or federal adjusted gross income (Subd. 21, Military service pension; retirement pay)
- Military Pension Subtraction (Who Qualifies)
- 273.13 Classification of property (Subd. 34, Homestead of veteran with a disability or family caregiver)
- 273.13 Classification of property (Subd. 34(c), surviving spouse)
- Market Value Exclusion for Veterans with a Disability
- 168.012 Vehicles exempt from tax or license fees (Subd. 13, Vehicles registered by certain veterans)
- 168.012 Vehicles exempt from tax or license fees (Subd. 13(d), number of vehicles)
- 171.01 Definitions (Subd. 51, Veteran with a total service-connected disability)
- 168.031 Registration exemption; active military service