North Dakota veteran taxes

Military retired pay in North Dakota

Exempttax year 2025Sources 1, 2, 3

North Dakota lets retired members of the U.S. armed forces, Reserve and National Guard subtract their military retirement benefits from North Dakota taxable income, to the extent the benefits are included in federal taxable income, with no age, cap or income test (N.D.C.C. § 57-38-30.3(2)(r)). The Office of State Tax Commissioner’s 2025 Form ND-1 instructions carry the deduction on line 14 for tax year 2025.

Survivor Benefit Plan annuities

ExemptSources 3, 2, 1

The same subtraction covers retired military personnel benefits paid to the surviving spouse of a deceased retired member of the armed forces, Reserve or National Guard (N.D.C.C. § 57-38-30.3(2)(r); 2025 Form ND-1 line 14). The statute and the instructions do not name the Survivor Benefit Plan and do not mention annuities paid to children.

Property tax relief for disabled veterans

Exemption or creditSources 4, 5, 6

North Dakota gives a property tax credit to a veteran with a service-connected disability of 50% or more, or paid at the 100% rate through an extra-schedular rating including individual unemployability, who was discharged under honorable conditions or retired from the armed forces. The credit equals the veteran’s disability percentage applied against the first $9,000 of taxable valuation of the homestead the veteran owns and occupies (N.D.C.C. § 57-02-08.8); the Tax Commissioner’s table runs from $4,500 at 50% to $9,000 at 100%.

• Two disabled veterans married to each other and living together may not combine credits above 100% of $9,000 of taxable valuation; the credit does not reduce special assessments. If the veteran co-owns the homestead with someone other than a spouse, parent or child, the credit is limited to the veteran’s interest (§ 57-02-08.8(2)).
• A paraplegic disabled veteran, or a veteran awarded VA specially adapted housing, is exempt on the first $120,000 of true and full valuation of the fixtures, buildings and improvements of the homestead (N.D.C.C. § 57-02-08(20)(a)).
• First-time claims: the statute calls for an affidavit and a VA certificate of the disability filed with the county auditor; the Tax Commissioner’s page says the application goes to the local assessor or county director of tax equalization by April 1.

Vehicle registration for disabled veterans

Fee waiver or discountSources 7, 8

North Dakota exempts from registration fees a motor vehicle of up to 26,000 pounds registered gross weight owned and operated by a disabled veteran with a 100% service-connected disability, a veteran paid at the 100% rate through an extra-schedular rating including individual unemployability, or a disabled veteran under Public Law 79-663 (38 U.S.C. 3901) (N.D.C.C. § 39-04-18(2)(j)). The veteran may display a distinctive plate, or a standard plate that does not identify the veteran, issued at no cost, or another distinctive or vanity plate bought from the Department of Transportation; the exemption covers no more than two such vehicles at a time.

• A surviving spouse receiving VA dependency and indemnity compensation keeps the registration fee exemption for one vehicle.
• The same veterans, and a surviving spouse receiving dependency and indemnity compensation, are exempt from the motor vehicle excise tax on a vehicle registered, or eligible to be registered, with the distinctive plate (N.D.C.C. § 57-40.3-04(1)).
• The statute does not give the plate a name.