Updated August 2026
Minnesota Veteran Benefits 2026
Ten thousand lakes, and a state that remembers who kept them free.
Minnesota’s benefits stretch from your tax return to the boat launch — unlimited retirement-pay subtraction, park passes at any rating, and more. Every claim below is verified against Minnesota statutes and agencies.
Minnesota Highlights
- Full military retirement pay tax exemption
- Property tax exclusion for disabled veterans
- No vehicle sales tax or registration tax for 100% P&T disabled veterans
- Free state park permit at any disability rating; free hunting & fishing licenses at 100%
- Minnesota GI Bill education benefits
Income Tax Treatment
Minnesota has a state income tax.
Military Retirement Pay: Minnesota allows an unlimited subtraction for military retirement pay (or an optional tax credit instead) with no age or income limits.
Active Duty Pay: Active duty pay earned in a combat zone is exempt.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Minnesota does not tax VA disability payments.
Property Tax Exemption for Disabled Veterans in Minnesota
Type: Assessed-value exclusion
Minnesota excludes a fixed amount of homestead market value from property tax for qualifying disabled veterans (a valuation exclusion, not a full exemption) under Minn. Stat. 273.13, subd. 34. Two tiers: 70%+ service-connected disability = $150,000 market-value exclusion; 100% total & permanent disability = $300,000 exclusion. Apply to the county assessor by Dec 31 for taxes payable the following year.
| VA disability rating / category | What you get |
|---|---|
| 70% or greater service-connected disability | $150,000 of homestead market value excluded from taxationHonorable discharge (DD214); homestead ownership/occupancy; VA-certified service-connected disability rating of 70% or more. |
| 100% total and permanent (P&T) service-connected disability | $300,000 of homestead market value excluded from taxationHonorable discharge; homestead; VA-certified 100% total and permanent service-connected disability. |
| Primary family caregiver of a qualifying veteran | $150,000 (if veteran 70%+) or $300,000 (if veteran 100% P&T)Caregiver of a qualifying veteran who does not own a homestead; mirrors the veteran's tier. |
- Income limit: None.
- Age requirement: None.
- Surviving spouse: Yes. Surviving spouse of a qualifying 100% P&T veteran (or a spouse receiving Dependency and Indemnity Compensation, or surviving spouse of a service member who died in active service) may receive the $300,000 exclusion until remarriage or sale/transfer of the property; time-limited continuation rules apply.
- Counts being paid at 100% via unemployability (TDIU)? Varies / not explicitly addressed — confirm with the assessor or state VA
Source: Minn. Stat. 273.13, subd. 34 and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the Minnesota Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.
Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.
Vehicle & Registration Benefits
Motor vehicle sales tax exemption (100% permanent & total): Minnesota exempts the “purchase of a motor vehicle by a veteran having a total service-connected disability” from the motor vehicle sales tax under Minn. Stat. 297B.03, clause (16). The statute uses the definition in Minn. Stat. 171.01, subd. 51: VA-issued evidence of a 100 percent total and permanent service-connected disability rating. If you are rated 100% but not permanent and total, confirm with DVS before relying on the exemption. Claim it when you title the vehicle — see the DVS military & veteran vehicle tax exemptions page. DVS also lists a sales tax exemption for vehicle modifications paid for by the VA.
Registration tax (license tabs) exemption: Under Minn. Stat. 168.012, subd. 13, a passenger automobile, one-ton pickup truck, motorcycle, or recreational vehicle registered by a veteran with a total service-connected disability (same 100% P&T definition) is exempt from the annual registration tax, plate and validation-sticker fees, and title/registration filing fees and surcharges. The exemption covers up to two vehicles at the same time and still applies when the vehicle is jointly registered with a spouse or domestic partner.
Other registration-tax exemptions under Minn. Stat. 168.031: a vehicle furnished free, in whole or in part, by the U.S. government to a disabled war veteran (for example, one bought with a VA automobile grant) is exempt from registration tax; a vehicle owned by a former prisoner of war bearing “EX-POW” plates is exempt; and members engaged in qualifying active military service can apply to exempt their vehicle during active service plus 90 days, provided it is not driven on Minnesota roads except while home on furlough or leave.
Military & veteran license plates: DVS issues more than 20 military and veteran plate types, including Proud to be a Veteran, Woman Veteran, campaign plates (World War II, Korea, Vietnam, Gulf War, Iraq, Afghanistan, Global War on Terrorism, and more), valor plates (Silver Star, Bronze Star, Combat Wounded – Purple Heart), Gold Star, Ex-POW, Medal of Honor, Minnesota National Guard, and Ready Reserve plates. Under Minn. Stat. 168.123 you must have been discharged under honorable conditions (bring a certified copy of your discharge papers/DD-214 showing character of discharge) and pay the special-plate fee plus normal registration tax — DVS lists $15.50 for a set of plates ($13.50 motorcycle). Ex-POW, Medal of Honor, and Gold Star plates are issued at no fee. Veterans with qualifying disabilities can apply for veteran/military disability plates using DVS form PS2904. Full list and details: DVS military & veteran specialized plates.
Recreation: Parks, Hunting & Fishing
Free state park permit — any disability rating: A veteran with any level of VA service-connected disability qualifies for a free annual state park vehicle permit under Minn. Stat. 85.053, subd. 10. Bring your VA determination (award) letter, VA health care ID card, or DoD privilege card each year to park staff at any state park — a Disabled Vet license plate also works as proof. Active-duty members of any branch, their dependents, and Purple Heart recipients also get a free annual permit (subd. 8) with qualifying military ID. If you do not own or operate a motor vehicle, free daily permits are available instead.
Free hunting & fishing licenses — 100% disabled resident veterans: Under Minn. Stat. 97A.441, Minnesota residents who are veterans with a 100% service-connected disability receive, free of charge: a permanent angling license (issued through the DNR License Center), an annual deer license (firearms, archery, or muzzleloader), and an annual small game license (state stamps not required). Show your VA rating evidence, the DNR's permanent card, or the veteran designation on your Minnesota driver's license or ID.
Active duty & recently discharged: Under Minn. Stat. 97A.465, Minnesota residents serving on active duty outside the state may hunt and fish without a license while home on leave with official military leave papers (moose and elk excluded; required seals and tags are furnished free). Residents discharged from active service who served in federal active service outside the United States at any time during the preceding 24 months (National Guard, reserve, or active duty) may take small game and fish without a license while carrying their official military discharge papers, and can obtain one free deer license per year (firearms, archery, or muzzleloader).
Coming March 1, 2027: reduced-fee deer, small game, and angling licenses for resident veterans with a 50–99% service-connected disability (Minn. Stat. 97A.465, subd. 9, added by Laws 2025). Until then, the free licenses above are limited to 100% ratings.
Check every license and pass you qualify for with the Minnesota DNR military personnel and veterans benefits tool.
VA Healthcare in Minnesota
Minnesota has approximately 2 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.