ND military pay exempt from tax

Active duty military – as well as National Guard and reserve members – no longer have to pay North Dakota income tax on military pay.

Gov. Burgum signed the bill, which overwhelmingly passed both houses of the legislature.  “North Dakota is recognizing the sacrifice of military service and building on the momentum of our ongoing efforts to make ours the most military-friendly state in the nation,”

National Guard Adjutant General Al Dohrmann says this will help the Guard with recruiting.  “This historic bill clearly demonstrates the great regard for our military by our state elected leaders.”

It’s estimated the bill will reduce North Dakota service members’ income taxes by $4 million in the 2023-25 biennium.

Twelve states fully exempt military income from state income tax – including Minnesota.