Does Minnesota tax military retirement pay?
Not taxed
No. Minnesota lets you subtract federally taxable military retirement pay under U.S. Code, title 10. If you take it, you cannot also claim the Credit for Past Military Service.
In the state's own words
Copied word for word from the official document linked below each quote:
“You may subtract your military retirement pay from your taxable income on Schedule M1M.”
“If you claim this subtraction, you may not claim the nonrefundable Credit for Past Military Service.”
Other retirement income in Minnesota
Yes, generally. Minnesota's main break is a subtraction for qualifying public pensions that were not earned with Social Security coverage, up to $13,540 single or $27,080 joint, with income limits. The Minnesota pension page has the details, and the Minnesota Social Security page covers Social Security. Partly. Minnesota lets you subtract all of your taxable Social Security if your adjusted gross income is below $108,320 (married filing jointly) or $84,490 (single or head of household). Above that, a smaller subtraction may still apply.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the Minnesota Department of Revenue before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Military Personnel: How Minnesota Taxes Your IncomeMinnesota Department of Revenue. Read on November 13, 2026.