Minnesota Veteran Tax Exemptions 2026

Minnesota has built one of the more generous property tax programs in the Midwest for disabled veterans, offering a substantial homestead market value exclusion that gets larger as your rating climbs. Your VA disability pay is also free from state income tax, so the combination can make a real difference in your household budget. The exclusion tiers mean that even veterans below the top rating see a meaningful benefit. This page explains the thresholds, the income tax treatment, and how to apply.

Does Minnesota tax VA disability income?

No. Minnesota does not tax VA disability compensation. The state treats it the same way the federal government does, which means it is left off your taxable income entirely. Whether you are rated 10 percent or 100 percent, your VA disability pay is not taxed by Minnesota.

Minnesota property tax exemption for disabled veterans

$150K to $300K homestead exclusion. $150K (70%+) and $300K (100% P&T) of market value excluded.

Minnesota's tiered exclusion grows significantly once you reach the higher rating brackets, and veterans at the top rating see the largest reduction in taxable home value. The gap between tiers is wide enough that your rating level matters a lot here.

What rating do you need in Minnesota?

The size of your break depends on your combined VA rating. In Minnesota, the break is tiered, so even a partial rating can lower your property tax bill, and the amount climbs as your rating climbs. Not sure what your combined rating works out to? Run it through our VA disability calculator first, and if you are aiming for the top tier, check whether you qualify for Permanent and Total status.

How to claim your Minnesota exemption

1. Confirm your current combined rating and whether it is Permanent and Total. Your VA award letter shows both.
2. Gather your DD-214 and your VA disability award letter. Most Minnesota offices ask for both.
3. Contact your county tax assessor for the property tax exemption, and the your state tax agency or Department of Veterans Affairs for the income side.
4. File before your county deadline. Many counties require you to apply once, then renew only if your rating changes.

Always confirm the current figures and deadlines with your county assessor and the Minnesota Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.