Minnesota's 350,000+ veterans have access to one of the most comprehensive state benefits packages in the Midwest — including a Market Value Exclusion of up to $300,000 on property taxes, the stackable Minnesota GI Bill, fully tax-exempt military retirement pay (effective 2023), five Veterans Homes, and free hunting & fishing licenses for 100% SC disabled veterans.
Minnesota is home to approximately 350,000 veterans — one of the largest veteran populations in the Upper Midwest. The state has a long history of strong veterans advocacy, operating one of the best county-level Veterans Service Officer (CVSO) networks in the nation, with accredited VSOs in all 87 counties. Minnesota also operates five Veterans Homes, maintains a significant National Guard presence, and has made several major improvements to veterans benefits in recent years — most notably the full military retirement tax exemption enacted in 2023.
Minnesota veterans benefit from both state programs codified in the Minnesota Statutes and the full range of federal VA benefits. This guide covers every major state program with current statutory citations, followed by a summary of federal benefits available to all veterans regardless of state. For federal VA claim help, see our complete VA benefits guide or check whether you qualify for federal disability compensation.
Minnesota's veterans property tax benefit operates as a Market Value Exclusion (MVE) — meaning a portion of your home's assessed market value is excluded from the taxable base, directly reducing what you owe in property taxes. This is authorized under Minnesota Statute § 273.13, subdivision 34.
Minnesota uses a tiered system based on the veteran's service-connected disability rating:
| Disability Rating | Market Value Exclusion | Est. Annual Tax Savings (1.2% effective rate) | Est. Annual Tax Savings (1.5% effective rate) |
|---|---|---|---|
| 70–99% service-connected | Up to $150,000 | ~$1,800 | ~$2,250 |
| 100% service-connected (any) | Up to $300,000 | ~$3,600 | ~$4,500 |
| Surviving spouse (unremarried) | Same as veteran's exclusion | Continues until remarriage or sale | Continues until remarriage or sale |
File your application with your county assessor's office by December 31 of the year before the year you want the exclusion to take effect (e.g., by December 31, 2025 for the 2026 assessment year). You'll need a copy of your DD-214 and your VA rating decision letter showing your disability percentage. Contact your county CVSO (Veterans Service Officer) for help with the application — this is a free service available in all 87 Minnesota counties.
Minnesota's statewide average property tax rate varies by county, but effective rates commonly range from 1.0% to 1.7% of market value in metro areas. A $300,000 MVE exclusion at a 1.3% effective rate saves approximately $3,900 per year — or $78,000 over 20 years. For 100% P&T veterans with significant VA compensation income, this exclusion can be one of the most financially impactful state benefits available.
In one of the most significant veterans benefits improvements in recent Minnesota history, the state fully exempted military retirement income from Minnesota state income tax starting with tax year 2023. Previously, military retirement was taxed as regular income — a major disadvantage compared to states like Texas, Florida, and Alaska that had long been tax-free. That disadvantage is now eliminated.
The following types of military retirement income are now fully exempt from Minnesota state income tax:
VA disability compensation was already federally tax-exempt and has never been subject to Minnesota income tax. The 2023 change brings military retirement — which was previously taxable — into alignment.
Minnesota's top marginal income tax rate is 9.85% (one of the highest in the nation for upper-income earners), with lower rates at 5.35%, 6.80%, and 7.85% for lower brackets. A military retiree earning $36,000/year in retirement pay (approximately the median for enlisted retirees) would have previously paid $1,926–$2,448 in Minnesota state income tax on that income. Under the 2023 exemption, that's now $0. For 20-year military retirees, this can mean $2,000–$4,000 in annual tax savings depending on retirement pay level.
See our CRDP guide and CRSC guide for details on those programs.
The Minnesota Department of Veterans Affairs (MDVA) is the state agency responsible for administering veterans benefits programs and providing direct services to Minnesota veterans. MDVA operates under Minnesota Statute § 197.585 and is a cabinet-level agency with a commissioner appointed by the governor.
Minnesota's most accessible veterans benefit is the County Veterans Service Officer (CVSO) network — 87 counties, 87 free veterans advocates. CVSOs are accredited by the MDVA and can help veterans with:
Find your county's CVSO at mdva.state.mn.us or call the MDVA main line at (651) 296-2562.
Beyond CVSO support, MDVA directly administers several key programs:
Minnesota state benefits layer on top of federal VA compensation. Check your federal eligibility — it takes 2 minutes.
Check Federal Eligibility → Get a Free Nexus Letter / IMO →Minnesota offers a robust layered education benefit system for veterans and their dependents, supplementing federal GI Bill benefits with state-specific funding.
The Minnesota GI Bill provides up to $3,000 per year (maximum $10,000 lifetime) in tuition assistance for qualifying Minnesota veterans and their dependents attending eligible institutions in Minnesota. Authorized under Minnesota Statute § 197.45, the program is administered by the Minnesota Office of Higher Education (OHE).
Eligibility requirements:
Dependents (spouse and children) of eligible veterans also qualify for the Minnesota GI Bill. This is particularly valuable for veterans who have exhausted their federal GI Bill entitlement or for family members seeking education funding. Apply through the Minnesota Office of Higher Education at ohe.state.mn.us.
Minnesota National Guard members (Army and Air Guard) are eligible for tuition reimbursement covering costs at Minnesota public institutions up to $6,000 per academic year. This is administered by the Minnesota Department of Military Affairs and is separate from the federal Tuition Assistance (TA) program. Guard members can stack TA, Guard tuition reimbursement, and Minnesota GI Bill benefits to potentially achieve near-zero tuition cost at University of Minnesota or MnSCU campuses.
Dependents of veterans who died of service-connected causes or are 100% P&T disabled may qualify for the federal Chapter 35 DEA education benefit, which provides up to 45 months of education and training assistance. Chapter 35 can be used at Minnesota institutions and stacks with the Minnesota GI Bill for eligible dependents.
Veterans with service-connected disabilities affecting employability may qualify for the federal Vocational Rehabilitation and Employment (VR&E) program, covering tuition, fees, books, and a subsistence allowance at Minnesota institutions through the master's level. VR&E can also fund on-the-job training, apprenticeships, and independent living services.
Minnesota provides meaningful employment preference for veterans applying for state civil service positions, codified under Minnesota Statute § 43A.11.
Veterans who are separated from active duty under honorable conditions receive a 10-point preference added to their civil service examination score. Veterans with a service-connected disability rating receive a 15-point preference. These points are applied to open competitive examinations for classified positions in state government.
The surviving spouse of a veteran killed in service or who died of a service-connected disability, if unremarried, may use the veteran's 10-point preference. Certain widows/widowers and mothers of disabled veterans may also qualify under specific circumstances defined in § 43A.11.
Minnesota veterans applying for federal jobs — including positions at Minneapolis VA Medical Center, Fort Snelling, and numerous federal agencies — receive federal 5-point or 10-point preference under 5 USC 2108. Federal positions at military installations, USDA, EPA, and other agencies in Minnesota represent significant employment opportunities. See our veterans federal employment guide.
Minnesota operates five state Veterans Homes providing long-term care, skilled nursing, memory care (Alzheimer's/dementia), and adult day services for eligible veterans and their families. These facilities are among the best state-run veterans care facilities in the nation.
| Location | City | Beds | Services |
|---|---|---|---|
| Minneapolis Veterans Home | Minneapolis | ~288 | Skilled nursing, memory care, adult day |
| Luverne Veterans Home | Luverne | ~70 | Skilled nursing, assisted living |
| Hastings Veterans Home | Hastings | ~80 | Skilled nursing, memory care |
| Fergus Falls Veterans Home | Fergus Falls | ~100 | Skilled nursing, memory care, adult day |
| Silver Bay Veterans Home | Silver Bay | ~100 | Skilled nursing, assisted living, memory care |
To be eligible for a Minnesota Veterans Home, a resident must be a veteran who served on active duty and was honorably discharged, or the eligible spouse of such a veteran. Residents pay on a sliding-scale fee based on their income — those with lower income pay less. Veterans receiving VA Aid & Attendance benefits (part of Special Monthly Compensation) can apply those payments toward Veterans Home costs, reducing out-of-pocket expenses. Medicaid also covers costs for eligible residents.
Apply for a Veterans Home through MDVA at mdva.state.mn.us/veterans-homes. There is typically a waiting list at the Minneapolis home; rural homes may have more immediate availability.
Minnesota offers meaningful hunting and fishing license benefits for veterans — particularly those with service-connected disabilities.
Veterans with a 100% service-connected disability rating (permanent) receive free annual combination hunting and fishing licenses from the Minnesota Department of Natural Resources. This is one of the most popular and widely used state veterans benefits. Apply at any Minnesota DNR license vendor or online at mndnr.gov with your VA rating decision letter.
Veterans who received the Purple Heart receive free annual hunting and fishing licenses regardless of disability rating. This recognizes combat-wounded veterans who may not have a 100% service-connected rating but demonstrated sacrifice in combat.
Veterans with service-connected disability ratings below 100% may qualify for reduced-rate resident licenses. Minnesota resident licenses are already significantly discounted versus non-resident rates, and qualifying veterans pay even less. Contact the Minnesota DNR at 651-296-6157 for current rate schedules.
The Minnesota DNR operates accessible hunting programs for veterans with physical disabilities — including special deer hunting permits, accessible stand sites on public land, and adaptive equipment provisions. These programs allow veterans with mobility impairments to enjoy hunting experiences otherwise difficult to access. The Minnesota Deer Hunters Association and Pheasants Forever also operate veteran-specific hunts statewide.
Minnesota offers a range of special license plates for veterans through the Department of Public Safety Driver and Vehicle Services (DVS):
Apply at any DVS office with your DD-214 and applicable documentation. Some plates can be ordered online through the Minnesota DVS portal. Disabled Veteran plates also carry parking privileges equivalent to disability parking permits.
Every Minnesota veteran is entitled to the full range of federal VA benefits, independent of state programs. These include:
If you're not yet rated or believe your current rating is too low, see our guide to increasing your VA rating and our rating decision letter guide. If you've been denied, our denied claim guide covers your options.
State benefits are just one layer. Check your federal eligibility and make sure you're not leaving VA compensation on the table.
Check Your Eligibility → Get a Nexus Letter for Your Claim →Minnesota operates two state veterans cemeteries — Little Falls State Veterans Cemetery (Morrison County) and Camp Ripley Veterans Cemetery — both administered by MDVA and providing burial at no cost to eligible veterans and their dependents. Fort Snelling National Cemetery in Minneapolis is the federal national cemetery for Minnesota veterans and one of the nation's busiest; contact Fort Snelling at (612) 726-1127 for eligibility and scheduling. All national and state cemeteries provide government-furnished headstones, perpetual care, and Presidential Memorial Certificates. For complete details, see our VA burial benefits guide.
Minnesota has invested significantly in veterans mental health. MDVA's Veterans Mental Health Initiative provides state grants to community organizations for counseling, peer support, and crisis intervention — often at zero or low cost. The Minnesota Assistance Council for Veterans (MACV) provides housing, employment, and case management for homeless and at-risk veterans in the Twin Cities area. VA Vet Centers in Minneapolis, St. Paul, and Duluth provide readjustment counseling and MST treatment outside the regular VA healthcare system — walk-in-friendly and open to veterans not enrolled in VA healthcare. Veterans in crisis can call or text 988 (press 1) for 24/7 VA crisis support. See our PTSD claim guide and PTSD secondary conditions guide.
Minnesota supports veteran-owned businesses through MDVA's Veteran-Owned Small Business (VOSB) and Service-Disabled Veteran-Owned Small Business (SDVOSB) certification program. Certified businesses receive a competitive preference in Minnesota state contracting. At the federal level, the SBA's Veteran Small Business Certification (VetCert) program provides access to federal contracting set-asides — a significant opportunity given Minnesota's large federal contracting base through the Minneapolis VA, military installations, and federal agencies like USDA and EPA. Combine state VOSB certification with federal VetCert to maximize contracting opportunities.
Beyond the military retirement exemption and property tax MVE, Minnesota veterans should understand these tax implications: VA disability compensation is always federally and state tax-exempt. Veterans receiving both military retirement and VA compensation should check whether they qualify for CRDP (Concurrent Retirement and Disability Pay) to receive both simultaneously without offset. Minnesota's regular Property Tax Refund (PTR) program provides additional refunds for homeowners with high property tax burdens relative to income — veterans can stack the PTR with the Military Value Exclusion for maximum property tax relief. File via the M1PR form on your Minnesota state return. For all federal VA benefit strategies, see our VA rating increase guide, disability ratings hub, and 100% disabled veteran benefits.
Veterans separating from active duty — including those transitioning from Guard or Reserve service — should visit their county CVSO as early as possible, ideally 6–12 months before separation. CVSOs help with VA claim filings under the Intent to File and Benefits Delivery at Discharge (BDD) programs, GI Bill certification, and employment resources. Minnesota's Department of Employment and Economic Development (DEED) operates veteran employment specialist staff at WorkForce Centers statewide — helping veterans translate military experience to civilian resumes and connect with Minnesota employers who actively recruit veterans. See our complete VA claim guide, VA disability and employment guide, and USERRA reemployment rights guide.
Minnesota veterans have access to a range of housing programs beyond the federal VA home loan:
The VA home loan's zero-down-payment benefit works throughout Minnesota's diverse housing market, from the Twin Cities metro to rural Greater Minnesota. Veterans with service-connected disabilities of 10%+ have the funding fee completely waived. See our VA home loan guide and VA entitlement guide.
The Minnesota Housing Finance Agency (MHFA) operates several programs benefiting veterans. The Start Up first-time homebuyer program includes options for veterans with below-market interest rates. The Veterans First initiative within MHFA prioritizes veterans for certain down payment assistance programs. Contact MHFA at mnhousing.gov for current veteran-specific offerings and income limits.
The Minnesota Assistance Council for Veterans (MACV) provides transitional housing, rapid rehousing, and permanent supportive housing for homeless veterans throughout Minnesota. MACV operates veteran housing facilities in the Twin Cities and provides case management statewide. HUD-VASH vouchers — combining rental assistance with VA case management — are available through the Minneapolis VA for qualifying veterans experiencing homelessness.
Minnesota veterans with disabilities have access to a range of adaptive recreation opportunities through VA and nonprofit programs:
Minnesota National Guard members (Army and Air) receive a comprehensive benefits package:
Contact the Minnesota JFHQ at Camp Ripley or Fort Snelling for Guard-specific benefits counseling. For education benefits comparison across Guard, Reserve, and active duty programs, see our state education benefits guide.
Minnesota has significant populations of Cold War and Vietnam-era veterans. Key considerations for these veterans:
If you are a Minnesota Vietnam veteran who has never filed a VA disability claim — or who filed decades ago and was denied — contact your county CVSO. Many conditions now have presumptive connections that didn't exist when you last filed.
The starting point for virtually all Minnesota state veterans benefits is your county Veterans Service Officer (CVSO). Minnesota has CVSOs in all 87 counties, and these accredited veterans advocates provide free help with every state application — property tax exclusion, Veterans Home applications, hunting/fishing licenses, Minnesota GI Bill, and more. Find your CVSO at mdva.state.mn.us or call MDVA at (651) 296-2562.
Minnesota's veterans community is served by active chapters of the major VSOs: American Legion (one of the strongest state organizations in the nation with 300+ posts), Veterans of Foreign Wars, Disabled American Veterans, AMVETS, Vietnam Veterans of America, and others. These organizations provide free accredited claims assistance, peer support, and community programs for Minnesota veterans. VFW and American Legion posts are present in virtually every Minnesota city and township — particularly valuable for Greater Minnesota veterans who may be far from a formal MDVA office. Find your nearest post through the national VSO directories or the MDVA website.
The Minnesota Assistance Council for Veterans (MACV) — mentioned earlier — specifically serves veterans experiencing housing instability, mental health challenges, and other acute needs with case-managed services beyond what VSOs typically provide. MACV's housing programs have served thousands of Minnesota veterans and their families since 1993.
For federal VA benefits that layer under all state programs — disability compensation, TDIU, VA healthcare, home loans — start with our VA claims process guide and eligibility check. If you need a nexus letter to establish service connection for a disability claim, services like REE Medical provide VA-standard IMOs. Minnesota veterans leaving money on the table federally are also missing out on the state benefit multiplier — every additional federal rating point can affect your state property tax exclusion tier, free license eligibility, and Veterans Home priority.
A Market Value Exclusion under Minn. Stat. § 273.13: up to $150,000 exclusion for 70–99% SC veterans; up to $300,000 for 100% SC veterans. Apply with your county assessor by December 31.
No — fully exempt starting tax year 2023. Active duty retirement, Guard/Reserve retirement, and SBP payments are all excluded from Minnesota taxable income.
A state supplement under Minn. Stat. § 197.45 providing up to $3,000/year / $10,000 lifetime at Minnesota institutions, stackable on top of federal GI Bill. Apply through the Minnesota OHE.
Minneapolis, Luverne, Hastings, Fergus Falls, and Silver Bay. Apply through MDVA at mdva.state.mn.us.
100% SC disabled veterans and Purple Heart recipients receive free annual licenses. Apply at any Minnesota DNR license vendor with your VA rating letter.
Your county Veterans Service Officer (CVSO) can help with all state applications at no charge. Find yours at mdva.state.mn.us. Minnesota has CVSOs in all 87 counties.