Minnesota Veteran Financial Benefits
Exclusion of Military Pay from State Income Tax:
Minnesota does not impose state income tax on military pay earned by resident service members actively serving in the U.S. Armed Forces. Additionally, if a service member passes away, their income for that year is exempt from taxation.
Any outstanding tax balances or penalties from previous years during which the service member was on active duty will be forgiven. Furthermore, surviving family members may request a refund for income taxes paid during the member’s time in service. These claims must be submitted within seven years from the date the return was filed or the tax was paid or collected.
Tax Relief for Families of Deceased Service Members on Active Duty:
Families of service members who die while on active duty in either the U.S. military or while serving under the United Nations may be eligible for state tax forgiveness under certain qualifying conditions.
Tax Exemption for Military Retirement Pay:
Retired military personnel residing in Minnesota are not taxed on their military retirement income. However, those who opt for this deduction are not eligible to claim the nonrefundable credit for prior military service.
Exclusion of Disability Retirement Pay:
Disability pay from the military — whether through pensions, annuities, or similar sources — for injuries or illnesses linked to active duty is not subject to Minnesota income tax. This also covers:
- Disability compensation and pensions awarded to Veterans or their families
- Grants for housing adapted for wheelchair use
- Vehicle grants for Veterans who lost limbs or vision
- Dependent-care assistance benefits
Tax-Free DIC Payments:
Dependency and Indemnity Compensation (DIC) payments made by the VA to survivors of service members who died in the line of duty — or from service-related conditions — are fully exempt from Minnesota state income tax.
Non-Taxable Survivor Benefits:
Annuities from the Survivor Benefit Plan (SBP), Reserve Component Survivor Benefit Plan (RCSBP), and the Retired Serviceman’s Family Protection Plan (RSFPP) are also not taxed by the state.
Combat Zone Tax Credit:
Minnesota offers a refundable $120 monthly tax credit for each month a service member spends in a combat zone or designated hazardous duty location. Even partial months count as full for this benefit, and the credit is available even if the individual has no taxable income or tax liability.
Tax Filing Extensions for Service Members:
Minnesota allows extended deadlines for income tax filing under specific circumstances:
- Combat Zone Deployment: Those serving in combat zones have 180 days after leaving the area to file and pay state taxes. If injured and hospitalized, the extension begins after discharge.
- Stationed Abroad (Non-Combat): Service members deployed overseas but not in combat areas have until October 15 of the tax year to file, though 90% of owed taxes must be paid by April 15 to avoid penalties.
- Reserve Component Members: Reservists called to active federal duty are granted a six-month extension to file and pay. If serving abroad, they receive additional time equal to their deployment length plus six months.
Homestead Market Value Exclusion for Veterans and Families:
Minnesota provides a property tax break through market value exclusions on the primary residence (homestead) of qualifying Veterans, surviving spouses, and designated primary caregivers. This benefit reduces the taxable market value of the home and includes two tiers:
- $150,000 Exclusion:
- Veterans with a 70%–100% VA disability rating (not permanent and total)
- Primary caregivers of Veterans with a 70%–100% VA rating (not permanent and total)
- $300,000 Exclusion:
- Veterans with a 100% permanent and total service-connected disability
- Surviving spouses receiving DIC
- Spouses of Veterans who held a 100% permanent and total rating
- Primary caregivers for Veterans rated at 100% permanent and total
Minnesota Sales Tax Overview:
- State Rate: 6.875%
- County Level: Counties are not authorized to impose an additional sales tax
- Notable Exemptions:
- Prescription medications
- Unprepared or raw food items
Recreation
Minnesota Veterans Campground at Big Marine Lake
Located in St. Croix, the Veterans Campground on Big Marine Lake is a family-friendly site designed to support rest, recreation, and healing for current and former U.S. Armed Forces members, along with their families and approved guests.
The facility offers a wide range of recreational options for all ages, such as cabin, RV, and tent camping, fishing, boating, tubing, swimming, volleyball, softball, horseshoes, outdoor pavilions for group events, a canteen, game room, and a lending library.
Complimentary Minnesota State Park Passes for Veterans, Active Duty, and Eligible Dependents
Service members, Disabled Veterans, Purple Heart recipients, and their eligible dependents may receive a free annual pass to Minnesota’s State Parks.
Who Qualifies for a Free Park Pass?
- Active duty military personnel from any service branch and their dependents must show current orders and valid military ID.
- Veterans with any VA-rated service-connected disability must provide their VA decision letter and a photo ID.
- Purple Heart recipients need to show proof of their award (e.g., DD214, award citation, etc.).
Minnesota DNR Benefits for Military and Veterans
The Minnesota Department of Natural Resources (DNR) offers several exclusive perks to Service members and Veterans:
Benefits for Active and Reserve Minnesota Residents:
- Priority selection for drawings in special deer hunts, antlerless deer lotteries, and bear and turkey lotteries.
- Service members on leave and stationed outside Minnesota may:
- Hunt small game without a license (no state waterfowl or pheasant stamps required; federal duck stamp still needed for waterfowl).
- Hunt big game (deer, bear, turkey, wolf) free of charge with proper licenses/tags via the Electronic License System (bonus tags not included).
- Fish without needing a license.
- Use ski trails without a ski pass.
Valid Minnesota driver’s license or state ID and leave documents are required when using these benefits.
For Recently Discharged Service Members:
- Those discharged within 10 days of or during the firearm deer season may buy a deer license that becomes effective immediately, with proof of discharge.
- Veterans returning from active duty outside the U.S. within the last two years may:
- Hunt small game without a license or state stamps (federal duck stamp still needed if under 65).
- Fish without a license (no trout stamp needed; free sturgeon tags available only in St. Paul’s DNR office).
- Get one free either-sex deer license annually (not valid in buck-only areas).
- Access ski trails without a pass.
- Receive top priority in drawings for special hunts and lotteries.
Benefits for Minnesota Disabled Veterans:
Veterans with a 100% service-connected VA disability rating may receive:
- A free small game hunting license (no state stamps required, but federal duck stamp needed for waterfowl).
- One free either-sex deer license each year (not valid in buck-only zones).
- Priority in all special hunt lotteries.
- A DNR-issued card that serves as proof of eligibility for free deer and small game licenses.
- A lifetime, no-cost fishing license (no trout stamp required); available only at the St. Paul DNR License Center.
- Permission to fish without a license for residents at Minnesota Veterans Homes, with written authorization from the home’s superintendent or executive director.
Purple Heart Recipient Benefits:
Minnesota Purple Heart recipients must still purchase hunting and fishing licenses but receive priority access to special hunt lotteries for deer, bear, and turkey.
Nonresident Military Benefits in Minnesota:
- Spouses of active-duty Minnesota resident Service members can purchase hunting and fishing licenses at resident rates, with proof of spouse’s military status and residency.
- Nonresident military personnel assigned to duty in Minnesota, training at Camp Ripley, or serving in the Minnesota National Guard are allowed to purchase resident licenses (except elk); official military documentation is required.
Firearms Safety Training Waiver for Service Members:
Service members who have completed military basic training may obtain hunting licenses without a firearms safety certificate. To qualify, they must show discharge documents (DD214) or current military ID to the instructor. Once they’re no longer serving or are discharged, anyone born after December 31, 1979, must complete a standard firearms safety course to continue hunting.
Free Subscription to Minnesota Conservation Volunteer Magazine:
The Minnesota DNR provides a complimentary two-year subscription to its Minnesota Conservation Volunteer magazine for Service members and Veterans.
Apprentice Hunter Validation Option:
An apprentice hunter validation may serve in place of a firearms safety certificate, but only within Minnesota. It can be purchased a maximum of two times. Individuals using this option must hunt under direct supervision of a fully licensed adult hunter who did not use the apprentice validation to obtain their license.
Education Programs
Minnesota Support Programs for Veterans in Higher Education
The Minnesota Department of Veterans Affairs operates the Higher Education Veterans Programs to help Veterans and their families access the educational resources and benefits they need to succeed in college. These services are available at institutions throughout the state and offer personalized, on-campus assistance tailored to the specific needs of military-connected students.
Staff members are placed at colleges and universities across Minnesota to help eliminate obstacles to enrollment, provide benefit guidance, and oversee Veterans Resource Centers on campus.
Veterans Program Coordinators assist institutions in implementing Veteran-supportive policies, including:
- Tuition payment extensions for students awaiting benefit disbursements
- Evaluation and acceptance of military training for academic credit
- In-state residency qualification for tuition purposes
- Course withdrawal options for students affected by deployments
Minnesota Veterans Education Assistance Grant
This one-time $750 tuition grant helps eligible Veterans complete their bachelor’s degree. It is only available to those who have fully used their VA education benefits.
Eligibility Criteria:
- Must have been a Minnesota resident for at least six months prior to joining the U.S. Armed Forces
- Must be a U.S. citizen and a current resident of Minnesota
- Must have fully exhausted VA education benefits within their period of eligibility; benefits that expired unused do not qualify
Approved Institutions Include:
- State universities and community colleges
- Technical and vocational colleges
- Any University of Minnesota campus
- Accredited institutions recognized by the North Central Association
- Law schools approved by the Supreme Court
- Theological seminaries
- Nursing schools approved by the Board of Nursing
- Business or trade schools approved by the Department of Education
Minnesota National Guard State Tuition Reimbursement (STR) Program
The STR program reimburses eligible Minnesota National Guard members up to 100% of tuition costs at accredited institutions. Benefits are capped at a lifetime maximum of 208 quarter credits or 144 semester credits.
- Undergraduate Level: Up to 100% of the undergraduate tuition rate at the University of Minnesota Twin Cities, with a yearly cap of $18,000 (July 1–June 30 fiscal year)
- Graduate Level: Up to 75% of the University of Minnesota’s graduate tuition rate, with a maximum benefit of $28,000 per fiscal year
Education Benefits for Surviving Spouses and Dependents
Surviving spouses and dependents of fallen Veterans are eligible for free tuition toward a bachelor’s degree at approved Minnesota colleges and universities. Additionally, the Minnesota Department of Veterans Affairs provides up to $750 per year to help cover fees, textbooks, supplies, and room and board.
Minnesota GI Bill Program
This program offers up to $10,000 in educational funding to Veterans, current service members, and their dependents. The funds may be applied to traditional college education, On-the-Job Training (OJT), apprenticeships, licensing, or certification programs.
Who Can Apply:
Applicants must be Minnesota residents and meet one of the following:
- Currently serving in any branch of the U.S. Armed Forces
- Honorably discharged Veteran who served in an active or reserve component
- Former service member with at least five years (cumulative) in active/reserve duty, with part of that service on or after September 11, 2001
- Surviving spouse or child of a Veteran who died in service or has a total and permanent service-connected disability
Minnesota’s Interstate Compact on Educational Opportunity for Military Children
This compact ensures academic continuity for children of military families who frequently relocate due to deployments and duty assignments.
Key Goals of the Compact:
- Speed up enrollment and ensure students aren’t penalized due to delays in record transfers or differing entrance rules
- Promote smooth transitions in school placement, class schedules, grading policies, and curriculum
- Ensure access to academic programs and extracurricular activities
- Support timely graduation for military-connected students
- Enable consistent data sharing among schools, states, and military families
- Foster cooperation among schools, states, and families to ensure students’ academic success
- Align with other compacts that benefit children of military personnel
Housing Support for Veterans in Minnesota
Minnesota offers dedicated residential facilities for Veterans and their spouses across the state. Currently, there are five operational Minnesota Veterans Homes providing comprehensive, high-quality care in a secure and supportive setting. Additionally, three more facilities are planned to open in the fall of 2023.
Services Offered at Minnesota Veterans Homes Include:
- 24/7 skilled nursing and medical care
- Specialized care for individuals with dementia
- Access to licensed medical professionals and round-the-clock nursing support
- Social work and support services
- Recreational activities and wellness programs
- Rehabilitative care, including physical, occupational, and speech therapy
- Mental and behavioral health counseling
- Spiritual guidance and chaplain services
- Personalized nutrition planning and meal services
- On-site pharmacy and medication management
These homes are designed to ensure Veterans and their families receive the compassionate, professional support they deserve in a home-like environment.
Minnesota State Veterans Home at Fergus Falls
Minnesota State Veterans Home at Hastings
Minnesota State Veterans Home at Luverne
Minnesota State Veterans Home at Minneapolis
Minnesota State Veterans Home at Silver Bay
Admission Requirements:
To qualify for admission, applicants must meet the following criteria:
- Be a Veteran who received an honorable discharge and completed at least 181 consecutive days of active duty service in the U.S. Armed Forces—unless discharged earlier due to a service-connected injury sustained while serving.
- Must have either entered military service from Minnesota or currently reside in the state.
- Spouses of eligible Veterans may also qualify, provided they are at least 55 years of age and meet Minnesota residency criteria.
- The individual must demonstrate a medical or clinical need for care.
Job and Career Support for Veterans in Minnesota
Paid Military Leave for Minnesota State Employees
Minnesota state employees who also serve in the National Guard or Armed Forces Reserve receive up to 15 days of paid military leave each calendar year for training or active duty—whether state or federal. During this time, they retain their pay, seniority, efficiency rating, vacation, sick leave, and all other benefits. revisor.mn.govmyarmybenefits.us.army.mil
Veterans’ Hiring Preference in Public Employment
Under the Minnesota Veterans Preference Act, most Veterans are given preferential treatment in hiring and promotion within Minnesota’s public sector. myarmybenefits.us.army.milblueearthcountymn.govmn.gov // Minnesota’s State Portal
- Non-disabled Veterans receive a 10-point bonus on competitive exam scores.
- Veterans with a service-connected disability of 50% or more get 15 extra points—additionally, disabled Veterans may earn 5 points on promotional exams. mn.gov // Minnesota’s State Portalmyarmybenefits.us.army.mil
- Spouses of disabled or deceased Veterans who cannot qualify due to disability may also claim preference. mn.gov // Minnesota’s State Portalmyarmybenefits.us.army.mil
- For state agency positions, disabled Veterans are ranked ahead of non-disabled Veterans, who are ranked ahead of non-Veterans. Recently separated Veterans (post‑September 11, 2001) must be considered and the top five must be interviewed, provided they meet qualification standards. mn.gov // Minnesota’s State Portal
- Once employed, Veterans cannot be removed from public positions except for proven incompetence or misconduct, and they are granted a choice between a Veterans Preference Hearing or using the collective bargaining grievance process. mn.gov // Minnesota’s State Portal
Permissive Veteran Preference in Private Sectors
Private employers in Minnesota may—but are not required to—give hiring or promotion preference to Veterans, surviving spouses, or spouses of totally disabled Veterans. myarmybenefits.us.army.mil
Federal Veteran Hiring Preferences
At the federal level, Veterans’ preference is governed by federal law—first codified in the Veterans’ Preference Act of 1944. Veterans may receive additional points on national competitive examinations:
- 5 points for service during qualifying periods (e.g., war, certain dates, campaigns, or expeditions)
- 10 points for compensated service-connected disabilities or if they’ve received a Purple Heart
- 10 points may also extend to spouses, surviving spouses, and mothers under specific conditions. Wikipedia
USERRA Protections—Reemployment Rights and Benefits
Federal law through USERRA (Uniformed Services Employment and Reemployment Rights Act) ensures that Veterans and reservists:
- Retain civilian job rights and benefits after military service
- Are protected from discrimination or dismissal due to military obligations
- Receive reemployment with full seniority, status, pay, and benefits, including retraining opportunities
- May continue employer-sponsored healthcare during service—with options to extend it up to 24 months—and maintain pension plan protections. myarmybenefits.us.army.milLeague of Minnesota Citiesag.state.mn.us
Minnesota National Guard—State Active Duty Compensation
Minnesota National Guard members called up for state active duty are compensated at the same rate as federally serving counterparts of the same rank and service duration—with a guaranteed minimum of $130 per day. myarmybenefits.us.army.mil
Veteran Career Support through Minnesota CareerForce
Minnesota CareerForce provides dedicated services for Veterans, including help with:
- Translating military skills into civilian career opportunities
- Accessing job listings, training programs, and education resources
- Creating effective resumes and cover letters
- Receiving priority service from Veterans Employment Specialists across all CareerForce locations in the state. myarmybenefits.us.army.mil
Burials and Memorials
Make sure to document your wishes regarding burial in a national cemetery and the use of a VA-provided headstone, and keep this information with your medical records and important documents. Veterans who received an honorable discharge are eligible for burial benefits.
The National Cemetery Administration (NCA) honors qualified Veterans and their families by offering a dignified final resting place and a lasting tribute that reflects their commitment to the country.
These burial benefits include a gravesite in any open national cemetery with available space, opening and closing of the grave, perpetual maintenance, a government-issued headstone or marker, a burial flag, and a Presidential Memorial Certificate—all provided at no cost to the family. In certain cases, Veterans may also qualify for a burial allowance. Cremated remains receive the same level of respect and ceremony as casketed remains and are either buried or inurned in national cemeteries.
Eligible spouses and dependents are also entitled to burial benefits, which include resting alongside the Veteran and continued care of the gravesite. The name, along with birth and death dates, of the spouse or dependent is engraved on the Veteran’s headstone without any cost to the family. Notably, spouses and dependents remain eligible even if they pass before the Veteran and do not need to be buried in the same national cemetery.
National Cemeteries include:
Minneapolis: Fort Snelling National Cemetery
Minnesota Veteran Benefit Resources
Veterans in Minnesota have access to a Regional VA Benefits Office as well as several VA Medical Centers across the state.
Minnesota VA Regional Benefits Office
- St. Paul: St. Paul Regional Office
Minnesota VA Medical Centers
- Minneapolis: Minneapolis VA Health Care System
- St. Cloud: St. Cloud VA Health Care System
Essential Details Regarding Minnesota Veteran Benefits
If you’re a Veteran in Minnesota applying for VA benefits for the first time, you’ll need to provide a copy of your DD 214 (discharge document). This form verifies key information such as your discharge status, full name, Social Security number, military branch, and dates of service. Veterans with an honorable or general discharge are generally eligible for most VA benefits.
Make sure to store your discharge documents and medical records in a secure, accessible place for both you and your family. Ideally, these records should be kept in a fireproof safe or another protected location to prevent loss or damage.
Most VA benefits depend on having been discharged under conditions other than dishonorable. Active duty refers to full-time service in the Army, Navy, Air Force, Marine Corps, or Coast Guard, or as a commissioned officer in agencies like the Public Health Service, NOAA, or the Environmental Services Administration.
Veterans discharged with a “Dishonorable” status—especially those resulting from general court-martial convictions—are typically ineligible for VA benefits. However, some benefits may still be available to incarcerated Veterans or those on parole. For more clarity, local VA regional offices can provide guidance for individuals with complex or multiple discharge situations.
This information reflects updates as of November 2023.
Veteran Benefits in Minnesota
Disabled Veterans in Minnesota with a VA disability rating of 90% or below may qualify for extra benefits. Reach out to Vital Veterans Consultants for a complimentary, no-obligation consultation. Our team can assess your current claim to see if you’re eligible for more support.