North Dakota Veteran Tax Exemptions 2026

North Dakota does not tax your VA disability compensation, so every dollar of your monthly VA pay stays yours, free from state income tax. The state also gives disabled veterans a property tax credit that kicks in once you hit a certain rating and grows from there. At the top rating, it can cover your entire property tax bill. This page covers who qualifies, how much you can expect, and exactly how to apply.

Does North Dakota tax VA disability income?

No. North Dakota 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 North Dakota.

North Dakota property tax exemption for disabled veterans

Property tax credit at 50%+. Tiered credit, with a full exemption at 100% P&T.

Even a partial rating opens the door to a credit in North Dakota, and reaching the top rating can erase your property tax liability entirely, which is a real and recurring saving year after year.

What rating do you need in North Dakota?

The size of your break depends on your combined VA rating. In North Dakota, 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 North Dakota 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 North Dakota 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 North Dakota Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.