North Dakota Veteran Financial Benefits
Military Pay and State Taxes
Service members in North Dakota are required to pay state income tax on their military pay. However, members of the National Guard or U.S. Armed Forces Reserves who are called to federal active duty may qualify for a state tax deduction on that pay.
Thrift Savings Plan (TSP)
TSP contributions are not subject to state or local tax withholding, but distributions are reported annually on IRS Form 1099-R and are subject to North Dakota state taxes. Early withdrawals may also result in higher tax obligations.
Military Retirement Pay
Military retired pay is fully exempt from North Dakota state income tax.
Combat Zone Tax Extension
North Dakota follows IRS guidelines in granting tax filing extensions for Service members deployed to a combat zone or supporting a contingency operation. Eligible Service members have 180 days from their redeployment or release from hospitalization (due to combat-related injuries) to file their state taxes.
Military Disability Retirement Pay
Disability retirement pay, pensions, annuities, or allowances for injuries or illnesses incurred during active duty are excluded from taxable income. This includes:
- VA disability compensation and pensions for Veterans or their families
- Grants for specially adapted housing
- Grants for motor vehicles for Veterans who lost use of limbs or sight
- Benefits received under dependent-care assistance programs
Dependency and Indemnity Compensation (DIC)
DIC payments to surviving spouses or dependents are fully tax-free.
Survivor Benefit Plans (SBP, RCSBP, RSFPP)
Payments under these plans are not taxed in North Dakota.
Homestead Property Tax Credit
The Homestead Property Tax Credit helps senior citizens and individuals with disabilities reduce their property taxes, with reductions based on annual income:
- $0 – $22,000 → 100% (up to $5,625)
- $22,001 – $26,000 → 80% (up to $4,500)
- $26,001 – $30,000 → 60% (up to $3,375)
- $30,001 – $34,000 → 40% (up to $2,250)
- $34,001 – $38,000 → 20% (up to $1,125)
- $38,001 – $42,000 → 10% (up to $563)
Renter’s Refund Program
Eligible senior citizens and disabled residents may receive a partial refund on rent or mobile home lot fees, with refunds up to $400.
Disabled Veterans Property Tax Credit
Disabled Veterans may receive property tax credits based on their VA disability rating, applied to the taxable value of their homestead:
- 100% → $8,100
- 90% → $7,290
- 80% → $6,480
- 70% → $5,670
- 60% → $4,860
- 50% → $4,050
Property Tax Exemption for Paraplegic Veterans
Paraplegic Veterans or those awarded specially adapted housing by the VA, as well as their un-remarried surviving spouses, are exempt from property taxes on the first $120,000 of their homestead’s value.
Military Spouse Income Exemption
Nonresident spouses of Service members may be exempt from North Dakota income tax if:
- Both the Service member and spouse are residents of another state
- The Service member is in North Dakota under military orders
- The spouse is in the state solely to accompany the Service member
Sales Tax Rates
- Statewide base: 5.0%
- Counties: may add up to 3.5%
- Current average (with local taxes): 6.97%
Recreation
- Operation Black Hills Cabin: Operation Black Hills Cabin offers a week-long stay to eligible Veterans from the Iraq or Afghanistan campaigns and their families for little to no cost. Events such as cook-offs, hikes, and fishing tournaments are offered throughout the year.
- North Dakota Fish and Game Department, Veterans Benefits: The North Dakota Game and Fish Department offers discounted licenses to eligible disabled Veterans.North Dakota Discounted Disabled Veterans Fishing License: Resident disabled Veterans who have a 50% or greater service-connected disability rating from the VA or have an extra-schedular rating to include individual unemployability that brings the Veteran’s total disability rating to 50% can purchase a fishing license for $5 (plus a $1 certificate fee).North Dakota Discounted, Totally or Permanently Disabled Hunting License: Resident disabled Veterans who have a 100% service-connected disability from the VA or have an extra-schedular rating to include individual unemployability that brings the Veteran’s total disability rating to 100%. You can purchase a combined general game, habitat stamp, small game, and fur-bearer license for $3 (plus a $1 certificate fee).
- North Dakota Nonresident Military Service Member Hunting and Fishing Benefits: On duty or leave, nonresident Service members in North Dakota are eligible to purchase non-lottery licenses such as fishing, small game, and furbearer for resident prices.
- North Dakota Resident Service Member Deer Gun License Not Subject to Lottery: North Dakota resident Service member serving in the U.S. Armed Forces and stationed outside the state may purchase a deer gun license without having to participate in the license lottery.
- North Dakota Resident Active Duty Service Members Deer Licensing Provisions: North Dakota resident Service members serving on federal active duty under Title 10, who are stationed outside of the state and received an expeditionary medal or campaign badge during the previous year’s deer gun season, are eligible for one white-tailed deer gun license in the unit of their choice, without having to participate in the lottery. Applications received after the deer gun deadline will be issued licenses based on availability.
- North Dakota Small Game Hunting, Fishing, or Trapping without a License for Military Service Members on Leave: North Dakota Resident Service members who are on leave may hunt small game, fish, or trap during the open season without a license. Service members are required to carry proof of residency and their leave paperwork when hunting, fishing, or trapping.
- Free or Reduced Cost Entrance Permit to North Dakota State Parks for Disabled Veterans and Former Prisoners of War (POWs): North Dakota Veterans who have a 50% or greater service-connected disability rating from the VA and former POWs are eligible for a free lifetime North Dakota State Park entrance permit. Resident Veterans with less than 50% service-connected disabilities may purchase an annual entrance permit for $28.Disabled Veterans must provide a current Summary of Benefits letter from the VA as proof of disability. Former POWs must give a copy of their DD214 that indicates their Former POW status.
North Dakota Military & Veteran Miscellaneous Benefits
Veterans Court
North Dakota operates a Veterans Court program designed to support justice-involved Veterans by connecting them with resources and treatment instead of focusing solely on punishment. To address the state’s large rural population, a “Virtual, Rural Veterans Court” was created. The process includes:
- Identification – Determining which individuals are Veterans.
- Connection – Linking them with a Veterans Justice Outreach Coordinator (VJO).
- Planning – The Veteran, VJO, and legal counsel work together to evaluate eligibility and options.
- Agreement – Judges, attorneys, and providers collaborate on a course of action.
- Implementation – The Veteran follows the agreed plan.
While participation is not a “get out of jail free” card, it offers Veterans access to treatment and the chance to re-enter their communities as productive citizens.
Service Member & Family Support Centers (SMFSC)
Located regionally throughout North Dakota, SMFSCs provide Service members and their families with guidance and connections to military, state, federal, and local resources. Services include:
- ID Card and DEERS enrollment
- TRICARE support
- Financial and legal assistance
- Crisis intervention and emergency family assistance
- Exceptional Family Member Program (EFMP)
- Community outreach and readiness programs
- Emergency financial assistance
Toll-Free Travel for National Guard Members
North Dakota National Guard Service members traveling to or from duty are entitled to free passage on toll roads, bridges, and ferries. This benefit covers the Service member’s vehicle and military equipment. Proof of duty—such as wearing a uniform or presenting documentation—is required.
Hardship Assistance Grant
This grant provides financial help for Veterans, their spouses, and un-remarried surviving spouses facing unmet needs. Covered expenses may include:
- Dental or denture work (excluding routine care)
- Vision and hearing expenses
- Medical transportation
- Housing deposits
- Special medically related needs
- Other emergency expenses approved by the Commissioner of Veterans Affairs
PTSD Service Dog Grant
Veterans with Post-Traumatic Stress Disorder (PTSD) may be eligible for a state-funded grant that provides a specially trained service dog. These dogs, trained in North Dakota, help Veterans by reducing anxiety, offering comfort in public, and waking them from nightmares. Minimum requirements include:
- North Dakota residency
- Official PTSD diagnosis from a licensed mental health professional
- At least one year of active counseling or therapy
- Doctor’s recommendation for a service dog
Veterans Aid Loan Program
The Veterans Aid Fund provides loans of up to $5,000 to Veterans or their surviving spouses. Loans carry an 8% annual interest rate with terms ranging from 6 to 48 months. If repaid on time, borrowers receive a refund of half the interest paid.
Education Programs
North Dakota Education Benefits for Service Members, Veterans, and Families
NDNG Tuition Assistance & 25% Tuition Waiver
North Dakota National Guard (NDNG) Service members are eligible for a 25% tuition waiver at participating state-supported colleges and universities. In addition, the NDNG covers up to 75% of tuition costs, which can be applied toward undergraduate or graduate degrees, as well as certificate programs.
- The lifetime maximum benefit is 144 semester credits or 208 quarter credits.
- Combined tuition assistance (federal, VA, state, etc.) may not exceed 100% of tuition costs.
Dependent Tuition Waiver
Certain dependents of eligible Veterans may attend North Dakota state-supported schools tuition- and fee-free. This benefit can be applied toward a bachelor’s degree or certificate program for up to 45 months (10 semesters).
Residency for Tuition Purposes
In-state tuition rates at North Dakota schools are available to:
- Full-time active duty Service members in the U.S. Armed Forces
- Members of the ND National Guard
- Reservists serving in North Dakota
- North Dakota Veterans with at least 180 days of continuous active duty (or full active-duty orders) with an honorable or general discharge
Spouses and dependents of qualifying Service members and Veterans are also eligible. Additionally, children, spouses, or surviving spouses of Veterans may qualify if the Veteran:
- Was killed in action or died from service-connected causes
- Became totally disabled due to service
- Died as a result of service-connected conditions
- Was a prisoner of war or declared missing in action
Honorary High School Diplomas
Veterans who left high school early to serve in the WWII, Korean War, or Vietnam War are eligible to receive honorary high school diplomas from the State of North Dakota.
Veterans Educational Training Program (VET)
The VET Program is a free, state-funded initiative to help Veterans and Service members prepare for higher education. It offers personalized, open-enrollment training programs (not for college credit) in areas such as:
- Math (basic arithmetic to pre-calculus)
- English, composition, literature, reading comprehension, public speaking
- Computer skills and study strategies
- Career and academic advising
- Assistance with college applications, financial aid, and VA benefits
- Vocational rehabilitation support and referrals to remove barriers to education
Interstate Compact on Educational Opportunity for Military Children (MIC3)
North Dakota participates in the MIC3, ensuring smooth educational transitions for military children who frequently relocate due to parental service. The compact helps by:
- Streamlining enrollment and transfer of records
- Standardizing placement, attendance, grading, and course requirements
- Ensuring on-time graduation
- Allowing eligibility for extracurricular programs across member states
- Promoting cooperation between schools, parents, and military families
Purple Star Award for Military-Friendly Schools
Schools earning the Purple Star Award demonstrate outstanding support for military-connected students. To qualify, schools must:
- Appoint a military family liaison trained to address unique challenges of Service member families
- Ensure teachers are aware of special considerations for military students
- Maintain a dedicated webpage with resources for military families
Housing: Below are the available locations for Veterans Homes.
North Dakota State Veterans Home at Lisbon
North Dakota State Veterans Home (NDVH):
Located in Lisbon, the NDVH provides two levels of care designed to support Veterans and their spouses. The Basic Care Unit offers 98 beds for residents who live independently but may require limited nursing assistance, while the Skilled Care Unit has 52 beds for individuals needing more comprehensive medical care.
The facility is staffed with registered nurses, licensed practical nurses, medication aides, household coordinators, and resident living specialists who deliver personalized support. In addition, the Veterans Home partners with a local healthcare provider to ensure licensed medical professionals visit the facility weekly.
Eligibility Requirements:
To be admitted, applicants must meet at least one of the following:
- Be a Veteran who served on federal active duty in the U.S. Armed Forces (other than training) and have lived in North Dakota for a minimum of 30 days
- Be a member of the North Dakota National Guard who has served on federal active duty
- Have entered the U.S. Armed Forces as a North Dakota resident
- Be the spouse or surviving spouse of an eligible Veteran
Note: Veterans discharged under dishonorable conditions are not eligible for residency.
Employment and Job Training: Veteran Preference
North Dakota Public Employment Preference:
Veterans in North Dakota are given hiring preference for public employment opportunities. To qualify, applicants must meet the required job qualifications and be mentally and physically capable of performing the duties of the position.
- Non-Competitive Hiring: For positions not filled through a competitive process, disabled Veterans are given first preference, followed by non-disabled Veterans, and then by eligible spouses or un-remarried surviving spouses.
- Competitive Hiring: For positions filled competitively, Veterans or eligible spouses/surviving spouses receive additional points:
- 5 points (5%) for non-disabled Veterans
- 10 points (10%) for disabled Veterans
- Eligible spouses/surviving spouses receive the same preference as the Veteran.
Federal Hiring Preference:
Federal law ensures Veterans—especially those with disabilities or who served during qualifying campaigns—are given preference in civil service hiring and retention during workforce reductions. Veterans can receive 5 or 10 extra points on examination scores depending on their eligibility.
- 5-Point Preference: Awarded to Veterans who served during:
- A war,
- April 28, 1952 – July 1, 1955,
- More than 180 consecutive days (excluding training) between Jan. 31, 1955, and Oct. 15, 1976,
- The Gulf War (Aug. 2, 1990 – Jan. 2, 1992),
- More than 180 consecutive days between Sept. 11, 2001 – Aug. 31, 2010, or
- In a qualifying campaign/expedition where a medal was awarded.
- 10-Point Preferences:
- Compensable Disability (CP): 10%–30% service-connected disability.
- 30%+ Compensable Disability (CPS): Service-connected disability of 30% or more.
- Disability Preference (XP): Any service-connected disability, or receipt of disability compensation, pension, or retirement benefits; also applies to Purple Heart recipients.
- Derived Preference: Awarded to spouses, surviving spouses, or mothers of eligible Veterans.
USERRA (Uniformed Services Employment and Reemployment Rights Act):
USERRA protects civilian job rights and benefits for Service members and Veterans. Key protections include:
- Reemployment rights for up to 5 years of military-related absence, with exceptions for longer service in certain cases.
- Disabled Veterans are entitled to reasonable workplace accommodations.
- Returning Service members are reinstated with the same seniority, pay, and status they would have earned if not absent.
- Employer-sponsored health coverage may continue up to 24 months during military service.
- Pension benefits remain protected during service.
Who is Eligible for USERRA?
- Veterans
- Reserve and National Guard members who leave a civilian job for training or active service
The U.S. Department of Labor (through VETS) assists with USERRA claims, including for Federal and Postal employees.
North Dakota Licensing Benefits for Service Members and Spouses:
North Dakota supports Service members and military spouses with professional licensing benefits:
- License Renewal Exemption: Service members deployed to a combat zone for more than 30 days are exempt from professional license renewal requirements during deployment.
- Temporary Licenses: Military members and spouses holding valid licenses from another state receive expedited processing. If full licensure isn’t immediately possible, a temporary license is issued for up to two years, provided the applicant continues to meet requirements. These licenses are issued free of charge.
Licenses NOT Eligible:
- Board of Accountancy
- Electrical Board
- Real Estate Appraiser Qualifications & Ethics Board
- Real Estate Commission
- Secretary of State (Contractor Licensing)
- Board of Medicine
- Board of Dental Examiners
Burials and Memorials
Please note that your preference regarding burial in a national cemetery and use of a headstone provided by VA should be documented and kept with your paperwork and medical records.
The National Cemetery Administration (NCA) pays tribute to eligible Veterans and their family members by providing a final resting place and a lasting memorial to commemorate the Veteran’s dedicated service to the nation.
The burial benefits encompass a gravesite in any of our open cemeteries with available space, the opening and closing of the grave, perpetual care, a government-furnished headstone or marker, a burial flag, and a Presidential Memorial Certificate, all at no cost to the family. Some Veterans may also meet the criteria for a burial allowance. Cremated remains are interred or inurned in national cemeteries with the same honors and respect as casketed remains.
Burial benefits extend to eligible spouses and dependents, including burial alongside the Veteran and perpetual care of the interment site. The name and relevant dates of birth and death of the spouse or dependent are inscribed on the Veteran’s headstone at no expense to the family. Importantly, spouses and qualified dependents are eligible for burial even if they pass away before the Veteran and are not required to be interred in the same national cemetery as the Veteran.
National Cemeteries include:
Harwood: Fargo National Cemetery
North Dakota VA Benefit Resources
Veterans in North Dakota have access to a Regional Benefits Office as well as a VA Medical Center for their needs.
North Dakota VA Regional Benefits Office
- Fargo: Fargo Regional Office
North Dakota VA Medical Centers
- Fargo: Fargo VA Health Care System
Key Details on North Dakota Veteran Benefits:
If you’re applying for VA benefits for the first time, you’ll need to provide a copy of your DD 214 (discharge document). This record verifies your discharge status, full name, Social Security number, branch of service, and service dates. Veterans with honorable or general discharges are typically eligible for most VA benefits.
It’s important to store your discharge papers and medical records securely in a place that you and your family can easily access—preferably in a safe to protect them from loss, damage, or tampering.
Eligibility for VA benefits usually depends on separation from active duty under conditions other than dishonorable. Active duty refers to full-time service in the Army, Navy, Air Force, Marine Corps, or Coast Guard, as well as commissioned officers of the Public Health Service, Environmental Services Administration, or the National Oceanic and Atmospheric Administration.
Veterans discharged under “Dishonorable” conditions due to bad conduct from a general court-martial are generally barred from VA benefits. However, certain benefits may still be available to incarcerated Veterans or parolees, and VA regional offices can help clarify eligibility for those with multiple discharges under different circumstances.
Information current as of November 2023
North Dakota Veteran Benefits
Disabled Veterans in North Dakota with a VA disability rating of 90% or lower may be entitled to extra benefits. You can reach out to Vital Veterans Consultants for a complimentary, no-obligation consultation. Their team can review your claim and help determine if you qualify for further benefits.
