Revenue celebrates National Military Appreciation Month by reminding service members about valuable tax benefits available to them

ST. PAUL, Minn. - During National Military Appreciation Month, the Minnesota Department of Revenue reminds service members of the valuable military-related tax benefits available to them and their families. These benefits may result in a reduction in taxable income a service member claims or lead to a larger tax refund.

“Making sure our military service members know about these tax benefits is a priority for the department,” said Revenue Commissioner Paul Marquart. “These benefits can mean real money to our service members and their families and are just one way for the state to thank them for their service to our country.”

The department offers a Military Service Members webpage that lists military tax benefits and information on claiming them. Minnesota’s military tax benefits include:

• Military Pension Subtraction. Taxpayers may subtract military retirement pay (including pensions) from their Minnesota taxable income.
• Credit for Military Service in a Combat Zone. Taxpayers may qualify for this credit if they served in a combat zone or qualified hazardous duty area on or after January 1, 2020.
• Credit for Past Military Service. Veterans of the U.S. military, including the National Guard and Reserves, may qualify for a tax credit up to $750 for past service.
• Active-Duty Military Pay Subtraction. Taxpayers may be able to subtract federally taxable active-duty military pay from their Minnesota taxable income.
• Filing Extensions. Taxpayers may qualify for an extension if they are serving in the U.S. military and cannot file or pay their Minnesota income tax by the due date.
• Market Value Exclusion on Homesteads of Disabled Veterans. Honorably discharged veterans may qualify for a property tax exclusion on their homestead if they have a service-connected disability rating of 70% or higher.

A full list of benefits available to military service members can be found by searching Keyword Military. See the department’s military tax tips video and sign up for email alerts to receive up-to-date military tax information. 

Information on the federal tax benefits for military service members can be found on the IRS’ website.

If you have questions, email individual.incometax@state.mn.us, or call 651-296-3781 or 1-800-652-9094 (toll-free).    

Get the latest news and updates from the Minnesota Department of Revenue by following the department on Facebook , Instagram, and on X (formerly Twitter) or by signing up for our email subscription list.