North Dakota Veteran Benefits at a Glance
North Dakota is home to roughly 50,000 veterans and operates its statewide programs through the North Dakota Department of Veterans Affairs. The state's veterans benefits landscape combines federal VA benefits (disability compensation, healthcare, GI Bill, VA home loans) with a layer of state-specific programs that can meaningfully change a veteran's cost of living — particularly through property tax relief and state income tax treatment of military retirement pay.
North Dakota's low cost of living, no retirement tax, and active oil/agricultural economy provide opportunity, but winters are extreme. For service members deciding where to retire — or for veterans evaluating whether to relocate — the questions that matter most are usually: how will my retirement pay be taxed, what happens to my property tax bill if I'm 100% disabled, can my children use state tuition benefits, and how strong is the state veterans agency? This guide walks through each in turn.
North Dakota Taxes for Veterans
Military Retirement Pay
North Dakota fully exempts military retirement pay from state income tax (2019 SB 2147).
This treatment matters because military retirement pay typically ranges from $20,000 to $90,000+ per year depending on rank and years of service. In a state that fully exempts the income, a retiree drawing $50,000 of retired pay avoids the entire state income tax on that amount — which, in a 5% state, equals roughly $2,500/year in savings versus a fully-taxing state. Over 20 years of retirement, that one rule alone can be worth $50,000+.
VA Disability Compensation
Like all states, North Dakota follows federal law and does not tax VA disability compensation. Whether you receive $171/month at 10% or roughly $4,044+/month at 100% with a qualifying dependent, that money is tax-free at both the federal and state level. See our VA disability calculator to estimate your monthly compensation.
North Dakota Property Tax Benefits for Veterans
Headline: Disabled veterans rated 50%+ receive a sliding property tax credit up to $8,100 in true value.
North Dakota's Disabled Veterans Property Tax Credit reduces taxable value based on disability percentage: a 100% disabled veteran can shield up to $8,100 of true value (around $364,000 in property value at residential equalization). The credit transfers to the unremarried surviving spouse.
For most homeowners, property tax is the second-largest annual housing expense after the mortgage itself. North Dakota's partial exemption still produces meaningful savings, especially for veterans with higher disability ratings, and stacks with senior citizen and other available exemptions.
How to Apply
Property tax exemptions are administered at the county level by the county assessor (sometimes called tax assessor, appraisal district, or commissioner of revenue depending on the state). You'll typically need: a copy of your VA award letter showing disability percentage and effective date, proof of residency, proof of ownership (deed), and a completed state application form. Many counties accept applications year-round but only apply the exemption beginning in the next tax year.
North Dakota Education Benefits for Veterans & Dependents
ND Dependents Educational Benefits & National Guard Tuition Assistance
Free tuition at ND state institutions for dependents of veterans who were KIA, MIA, POW, or 100% disabled; ND National Guard members qualify for state tuition assistance up to 100%.
These state programs typically stack with — rather than replace — federal benefits like the Post-9/11 GI Bill. Many veterans use federal benefits first and state programs for any remaining costs, or use state benefits for dependents while preserving federal benefits for the service member. Application is usually handled directly through the school's veteran affairs office, which coordinates with the state agency.
In-State Tuition
Under federal law (the Veterans Access, Choice, and Accountability Act), public colleges in North Dakota — like all states — must charge in-state tuition to veterans using GI Bill benefits regardless of state residency, provided the veteran enrolls within three years of discharge. This rule is especially valuable in higher-cost states like California, Maryland, and Washington.
Employment & Professional Licensing
State Veteran Hiring Preference
Veteran preference on ND state employment; Job Service ND veteran representatives.
Occupational Licensing
ND grants military credit for licensing; expedited military spouse licensure.
Translating military experience into civilian credentials is one of the most common pain points in transition. North Dakota's licensing rules can shave months — and thousands of dollars — off the path to civilian roles in healthcare, commercial driving, IT, and the trades. The North Dakota Department of Veterans Affairs can point you to industry-specific resources and to apprenticeship programs that count GI Bill benefits.
State Parks, Hunting & Fishing
North Dakota State Parks
Free annual ND State Parks vehicle pass for 100% disabled veterans.
Hunting & Fishing Licenses
Resident disabled veterans qualify for free or reduced-fee hunting and fishing licenses.
Vehicles, Plates & Driver Licenses
Disabled Veteran License Plates
Disabled veteran plates issued at no charge; reduced registration fees for qualifying veterans.
Veteran Driver License Designation
Veteran designation on ND driver license/ID at no extra cost. The veteran designation is recognized as proof of service at most businesses offering veteran discounts (restaurants, retailers, hotels) and eliminates the need to carry your DD-214 for routine ID purposes.
State Veteran Homes & Cemeteries
North Dakota operates 1 state veteran home, providing skilled nursing, domiciliary, and/or memory care to eligible veterans (and in some cases spouses and Gold Star parents). Admission requirements vary by facility but generally require honorable discharge, state residency, and clinical need for the level of care offered. The VA typically reimburses a portion of the per-diem cost, making state homes significantly more affordable than private long-term care.
The state also maintains 1 state veteran cemetery/cemeteries in addition to any federal VA national cemeteries within the state. Burial benefits for honorably discharged veterans typically include the gravesite, opening and closing, a government headstone or marker, a U.S. burial flag, and a Presidential Memorial Certificate.
North Dakota Department of Veterans Affairs
The North Dakota Department of Veterans Affairs is North Dakota's official cabinet-level (or commission-level) state agency for veteran affairs. It administers state benefits, accredits and supervises County Veteran Service Officers (CVSOs), operates state veteran homes and cemeteries, and serves as the liaison between North Dakota veterans and the federal VA. The agency does not charge fees for assistance — accredited VSO help is always free.
- Website: https://www.nd.gov/veterans/
- Phone: 701-239-7165
- Capital: Bismarck, ND
When in doubt, start with the state agency. They can refer you to a free accredited representative, walk you through state-specific applications (which are easy to miss when you only look at VA.gov), and help with emergency assistance programs available in many states for veterans experiencing financial crisis.
Is North Dakota a Good State for Veterans?
Cost of Living
North Dakota's overall cost of living is low relative to the U.S. average. Combined with the state's tax treatment of retirement pay and property tax rules, this drives the real after-tax purchasing power of a military retirement.
Climate
Cold continental climate with long harsh winters and short warm summers.
Veteran Population & Community
With roughly 50,000 veterans, North Dakota has a smaller veteran population, which often means tighter-knit communities but potentially longer drives to a full-service VA medical center.
Military Installations
Major active-duty installations in North Dakota: Minot AFB, Grand Forks AFB. Proximity to an active-duty base usually means better commissary/exchange access, on-base healthcare options (Tricare), and a stronger pool of veteran-friendly employers and housing.
Frequently Asked Questions — North Dakota Veterans Benefits
What benefits do veterans get in North Dakota?
North Dakota veterans receive a mix of property tax relief, education benefits, employment preference, free or discounted state park access, hunting and fishing license discounts, and access to 1 state veteran home and 1 state veterans cemetery/cemeteries. North Dakota's low cost of living, no retirement tax, and active oil/agricultural economy provide opportunity, but winters are extreme.
Do disabled veterans pay property taxes in North Dakota?
North Dakota offers a partial property tax exemption for disabled veterans rather than a full exemption. North Dakota's Disabled Veterans Property Tax Credit reduces taxable value based on disability percentage: a 100% disabled veteran can shield up to $8,100 of true value (around $364,000 in property value at residential equalization). The credit transfers to the unremarried surviving spouse.
Does North Dakota tax military retirement pay?
North Dakota fully exempts military retirement pay from state income tax (2019 SB 2147).
Does North Dakota offer free college for veterans or dependents?
North Dakota's primary education benefit is the ND Dependents Educational Benefits & National Guard Tuition Assistance. Free tuition at ND state institutions for dependents of veterans who were KIA, MIA, POW, or 100% disabled; ND National Guard members qualify for state tuition assistance up to 100%.
What is the official state veterans agency in North Dakota?
The North Dakota Department of Veterans Affairs (701-239-7165) is the official state agency. Visit https://www.nd.gov/veterans/ for the most current programs, accredited claim assistance, and county-level Veteran Service Officer contacts.
Is North Dakota a good state for military retirees?
North Dakota's low cost of living, no retirement tax, and active oil/agricultural economy provide opportunity, but winters are extreme. Cost of living is low, and cold continental climate with long harsh winters and short warm summers.
Disclaimer: State veterans benefits change frequently as legislatures pass new laws. Always verify current eligibility, dollar amounts, and application procedures with the North Dakota Department of Veterans Affairs or an accredited Veterans Service Officer before relying on any information on this page. This site provides educational information, not legal or tax advice.