Military retirement pay in Minnesota
Varies
Does Minnesota Tax Military Retirement Pay?
Short answer: No. Minnesota fully exempts military retired pay from state income tax (full subtraction since tax year 2023). Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed with no general retirement exclusion.
Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Military retirement pay in Minnesota
Varies
Individuals / Personal Taxes
No. Minnesota fully exempts military retired pay from state income tax (full subtraction since tax year 2023). Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed with no general retirement exclusion.
Business justification
No. Minnesota fully exempts military retired pay from state income tax (full subtraction since tax year 2023). Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed with no general retirement exclusion. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions