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Last Updated: 7/16/2018

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Individual Income Tax

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Individual Income Tax > Tax Information > Military: Subtraction for active duty military pay

  • Does my military pension qualify for the subtraction for active-duty military pay?Back to top

    No. Only active-duty military pay qualifies.​

  • I am in Active Guard Reserve status as a member of the National Guard and received orders under Title 32 in operational support. Am I allowed a subtraction of my active duty pay?Back to top

    Because you are in operational support, you are no longer in Active Guard Reserve status.  You will qualify for a subtraction of your state active duty pay.​

  • I am a member of the Active Guard Reserve and was called to federal active duty under Title 10 orders. Am I allowed a subtraction of my active duty pay?Back to top

    You will qualify for a subtraction of your federal active duty pay. Members called to active duty under Title 10 are considered servicemembers of the United States/United Nations armed forces.

  • I received federal active duty military pay and am a Minnesota resident. Do I have to pay state taxes?Back to top

    You are not required to pay Minnesota tax on your federal active duty military pay for services performed under your orders.

    Beginning in 2005, if you are a Minnesota resident who is serving on federal active duty, you are allowed a subtraction of your active duty military pay (to the extent it is federally taxable) for the time you are stationed outside of Minnesota.  On June 1, 2011, the subtraction was expanded to include nonresidents and all active duty military pay, regardless of where you were stationed.   For more information see Filing Requirements for Active-Duty Military Members.

    As a Minnesota resident, you may qualify for some of the state’s refundable credits (such as the Working Family Credit). In order to claim these credits, you must file a Minnesota return.

  • I am employed by the US Public Health Service, does my income qualify for the active duty subtraction? Back to top

    You are not eligible for the income tax subtraction unless you are called to active duty in the armed services under Title 10 when the President issues an executive order, in time of war, or emergency. At that time, you are declared a part of the military and become eligible for the subtraction of pay received for this period only.