Minnesota Tax Exemptions for Active and Retired Military

Members of the Minnesota National Guard, US military active duty members, and former members receiving military pensions and other military retirement pay are exempt from state taxes.

To set this exemption:

1. Open the person's Tax Withholding card for editing.

2. Under Regional, click Edit State Taxes for the MN component.

   Add this component if it doesn't already exist.

3. In Withholding Exemption, select Yes for one of the following.

   • Minnesota National Guard or an Active-Duty U.S. Military Member

   • Military Pensioner or Retiree

   This sets Exempt from State Income Tax to Yes.

4. Click Save and Close.