--- title: North Dakota Military & Veteran Property Tax Exemptions (2026) slug: north-dakota-veteran-property-tax-exemptions-2026 description: >- How North Dakota's disabled veterans property tax credit scales with your VA rating, plus how it taxes military pay. Ask a VeteranPCS agent in North Dakota. publishedAt: '2026-01-06T09:00:00.000Z' updatedAt: '2026-06-22T00:00:00.000Z' author: VeteranPCS categories: - Financial Guidance canonical: >- https://www.veteranpcs.com/blog/north-dakota-veteran-property-tax-exemptions-2026 componentSlug: financial-guidance stateSlug: north-dakota --- # North Dakota Military & Veteran Property Tax Exemptions (2026) If you serve in the military or have served, it helps to know exactly how North Dakota handles property taxes for veterans. North Dakota is home to Grand Forks Air Force Base near Grand Forks and Minot Air Force Base in Minot, so it draws many military families after a PCS, which is short for Permanent Change of Station, the official military move from one duty station to another. North Dakota does not offer a broad property tax exemption for veterans. Instead, it gives disabled veterans a credit that scales with the VA rating. This guide explains how that works in plain language and points you to the state's own sources. Tax law changes, so treat these figures as a starting point and confirm the current rules before you file. ## How North Dakota Helps Disabled Veterans With Property Taxes North Dakota does not erase a disabled veteran's property tax bill. Instead, it lowers the taxable value of the home through a credit that grows with the disability rating. The U.S. Department of Veterans Affairs, known as the VA, is the federal agency that rates service-connected disabilities, and the size of that rating sets the size of the credit. As the [North Dakota Office of State Tax Commissioner explains](https://www.tax.nd.gov/property-tax-exemptions-credits/property-tax-credits/disabled-veterans-property-tax-credit), the Disabled Veteran's Property Tax Credit, set in North Dakota Century Code 57-02-08.8, reduces the taxable value of a qualifying veteran's homestead by an amount tied to the rating. ### Who Qualifies To qualify, you must be a disabled veteran of the United States armed forces with a service-connected disability of 50 percent or greater, or a veteran with an extra-schedular rating, including individual unemployability, that results in being paid at the 100 percent rate by the VA. You must have received an honorable discharge or be retired from the armed forces, and you must reside on and have an ownership interest in the home. ### How Much the Credit Is Worth The credit reduces the taxable value of your homestead based on your rating, on a sliding scale. Taxable value in North Dakota is only a small share of a home's market value, so the credit reaches more of the bill than the dollar figures alone might suggest. | VA disability rating | Maximum reduction of taxable value | |----------------------|------------------------------------| | 100% | $9,000 | | 90% | $8,100 | | 80% | $7,200 | | 70% | $6,300 | | 60% | $5,400 | | 50% | $4,500 | If two disabled veterans are married and living together, their combined credits may not exceed 100 percent, or $9,000, of the taxable value of the homestead. ### Surviving Spouses The benefit can carry to a surviving spouse. If the qualifying veteran dies, the spouse is eligible for the credit, and a spouse who receives VA dependency and indemnity compensation receives 100 percent of the credit. Confirm the conditions with your county director of tax equalization. ## How It Works With Your Local Tax Bill Property tax in North Dakota is assessed and collected at the local level. You apply for the Disabled Veteran's Property Tax Credit by submitting the application to your local assessor or county director of tax equalization, with documentation of your service-connected disability and your honorable discharge. The application is due by April 1 of the year in which the property is assessed. Once you qualify, the credit is applied automatically. Near Grand Forks Air Force Base that office is in Grand Forks County, and near Minot Air Force Base it is in Ward County. If you are weighing where to settle, our guide to the [military bases in North Dakota](/blog/what-military-bases-are-in-north-dakota) can help you picture the local cost of owning a home in each market. ## Military Pay and North Dakota State Income Tax North Dakota has one of the lowest income taxes in the country, with a top rate of 2.5 percent, and it treats military income generously. The way the state handles your pay depends on the type of pay, but the result for most military families is little or no tax on service income. Since tax year 2023, North Dakota lets service members deduct all military pay, which covers active-duty pay along with National Guard and Reserve pay, including bonuses, education, and training pay. Military retirement pay has been deductible since 2019, and the deduction also reaches surviving spouses receiving those benefits. The state's [guidance for military service members](https://www.tax.nd.gov/military-service-members) explains both deductions. VA disability compensation is not part of your federal income, so North Dakota does not tax it either. Because rates and rules can change, confirm the current details with the Office of State Tax Commissioner before you file. ## A Note for Military Spouses: MSRRA If you are a military spouse, the Military Spouse Residency Relief Act, known as MSRRA, may matter to you. MSRRA is a federal law that lets a military spouse keep a home state for tax and voting purposes even after moving on military orders. You do not automatically become a North Dakota resident just because your service member got orders here. Under the related federal rules, a service member, the spouse, or both may choose the service member's home state, the spouse's home state, or the service member's permanent duty station for residency. Because that choice affects both states' taxes, confirm yours before you file. For the property tax credit in this guide, what usually matters most is that the qualifying veteran resides on and has an ownership interest in the home. ## How to Apply and Where to Verify You apply for the Disabled Veteran's Property Tax Credit with your local assessor or county director of tax equalization by April 1, with a current VA letter confirming your service-connected disability rating of 50 percent or greater or your individual unemployability rating. Because the rules and amounts can change, confirm the current details with your county director of tax equalization, the [North Dakota Office of State Tax Commissioner](https://www.tax.nd.gov/property-tax-exemptions-credits/property-tax-credits/disabled-veterans-property-tax-credit), and the [North Dakota Department of Veterans Affairs](https://www.veterans.nd.gov/) before you file. When you want a local read on a neighborhood and its tax rates, you can ask Shane Murray, a VeteranPCS agent in Grand Forks near Grand Forks Air Force Base, for current listings and a sense of local property taxes. If a VA loan is part of your plan, which is a home loan backed by the U.S. Department of Veterans Affairs, learn [what the benefits of a VA loan are](/blog/what-are-the-benefits-of-a-va-loan), see [how a zero-down VA loan works](/blog/how-does-a-0-down-va-loan-work), read our [complete guide to buying your first home with a VA loan](/blog/complete-guide-to-buying-your-first-home-with-a-va-loan), and review the [2026 VA loan limits for military homebuyers](/blog/2026-va-loan-limits-explained-for-military-homebuyers). When you are ready, you can [connect with a VeteranPCS lender](https://www.veteranpcs.com/contact-lender) or [connect with our VeteranPCS network in North Dakota](https://www.veteranpcs.com/north-dakota). ## Frequently Asked Questions ### Do disabled veterans pay property taxes in North Dakota? Often a reduced amount. North Dakota gives a credit that lowers the taxable value of a qualifying veteran's homestead, scaled by the VA rating, up to a $9,000 reduction in taxable value for a 100 percent rating. It is a credit, not a full exemption, so larger bills are reduced rather than erased. Confirm your eligibility with your county director of tax equalization. ### What disability rating do I need for the North Dakota credit? You need a service-connected disability of 50 percent or greater, or an extra-schedular rating, including individual unemployability, that results in being paid at the 100 percent rate by the VA. The credit then scales with your rating, from a $4,500 reduction in taxable value at 50 percent up to $9,000 at 100 percent. ### Does North Dakota tax military retirement pay? No. North Dakota has let retirees deduct military retirement pay since 2019, and since 2023 it lets service members deduct all military pay, including National Guard and Reserve pay. VA disability compensation is not taxed. ### How do I apply for the North Dakota disabled veterans credit? Submit the application to your local assessor or county director of tax equalization by April 1, with documentation of your service-connected disability rating and honorable discharge. Once you qualify, the credit is applied automatically. ### Can a surviving spouse claim the North Dakota credit? Yes, in many cases. If the qualifying veteran dies, the spouse is eligible for the credit, and a spouse receiving VA dependency and indemnity compensation receives 100 percent of the credit. Confirm the conditions with your county director of tax equalization. Property tax rules and dollar amounts change from year to year, and your situation may have details a general guide cannot cover. Please consult a tax professional or attorney before making decisions based on this credit, and verify the current rules and amounts with your county director of tax equalization and the State of North Dakota before you file. _This content is for informational purposes. Consult a professional for personal financial decisions._