Updated January 2026
Minnesota Veteran Benefits 2026
Minnesota offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in MN for 2026.
Minnesota Highlights
- Full military retirement pay tax exemption
- Property tax exclusion for disabled veterans
- Free state park access for disabled veterans
- 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.
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.