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. Click Regional.

  3. Open the Minnesota component for editing.

    Add this component if it doesn't already exist.

  4. 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 Withholding to Yes.

  5. Click Submit.