Military retirement and state taxes
Minnesota lets you subtract military retirement pay from state income tax.
Camp Ripley (Minnesota National Guard) · Minneapolis-St. Paul Air Reserve Station
Yes. You can use a VA loan anywhere in Minnesota, from Minneapolis to Little Falls. Minnesota doesn't tax military retirement pay. We lend in Minnesota and help military families buy across the state, including Guard and Reserve families.
Good to know
Minnesota lets you subtract military retirement pay from state income tax.
Minnesota takes $150,000 off your home's market value at a 70% rating, and $300,000 at 100% permanent and total. Apply through your local tax office after you move in.
Many Minnesota VA buyers serve in the Guard or Reserve. Six years of service, or 90 days on federal orders, can make you eligible.
Tax rules shown are general and current as of October 2026. Confirm the details with your county or the state before you rely on them.
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Minnesota questions
Minnesota lets you subtract military retirement pay from state income tax. VA disability compensation isn't taxed.
Minnesota takes $150,000 off your home's market value at a 70% rating, and $300,000 at 100% permanent and total. Rules and amounts can change, so confirm with your local tax office.
Yes. VA loans work in cities, suburbs and rural areas across Minnesota, as long as the home will be your main residence and meets VA property standards. We lend statewide, so we can help wherever you're buying.
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