North Dakota Veteran Benefits

Disabled Veteran Property Tax Credit Under NDCC §57-02-08.8

North Dakota Disabled Veteran Property Tax Exemptions in 2026

Written by: Levi Rodgers, Co-Founder & Army VeteranWritten by: Levi Rodgers, Army Veteran

Reviewed by: Kenneth Schwartz, Loan OfficerNMLS#1001095Reviewed: Kenneth Schwartz (NMLS 1001095)

Updated on April 17, 2026

Primary sources:
ND Office of State Tax Commissioner — Disabled Veteran’s Property Tax Credit

NDCC §57-02-08.8 — Disabled Veteran Property Tax Credit

North Dakota Military Benefits — MyArmyBenefits

North Dakota offers a property tax credit proportional to your disability rating, applied against the first $180,000 of true and full value of your homestead. A veteran with a 100% rating gets 100% credit on that $180,000 — at North Dakota’s average effective rate of 0.94%, that saves approximately $1,692 per year ($141/month). A veteran at 50% gets half that credit. With two major Air Force bases — Minot AFB and Grand Forks AFB — North Dakota’s benefit is well-structured for military families buying affordable homes in base communities.

Next step:
Check Your VA Loan Eligibility

Veteran Tax Credit

Credit equals: Credit equals your disability percentage applied to the first $180,000 of true and full value
Key figure: 100% rating = 100% credit on $180,000; 50% rating = 50% credit on $180,000
Requirement: Requires 50% or greater service-connected disability with honorable discharge

Proportional Benefit

Unlike most: Unlike most states, partial disability ratings (50%+) receive proportional credit
Key figure: 70% disabled veteran gets 70% credit on first $180,000 of value
Extra: schedular rating bringing total to 100% also qualifies for full credit

Filing And Deadlines

First: time application requires DD-214 and VA disability certification
File with: File with the county director of tax equalization in your county
North Dakota: North Dakota has 53 counties — each processes independently

VA Loan Impact

Key figure: 100% rating on a $287,000 home near Minot AFB: saves approximately $1,692/year ($141/month)
Annual savings: $141/month savings adds roughly $17,000 in buying power at 6.5%
Proportional credit: Proportional credit means even 50% disabled veterans see meaningful savings

Frequently Asked Questions

How is the North Dakota veteran property tax credit calculated?

The credit equals your disability percentage multiplied by the tax on the first $180,000 of true and full value. A 100% rated veteran gets the full credit on $180,000 of value. A 70% rated veteran gets 70% of that credit. At North Dakota’s average 0.94% rate, the maximum annual credit is approximately $1,692.

Do veterans with partial disability ratings qualify?

Yes — any veteran with 50% or greater service-connected disability qualifies. The credit is proportional to your rating. A 50% rated veteran receives a smaller credit than a 100% rated veteran, but still gets meaningful savings.

Where do I apply for the North Dakota disabled veteran property tax credit?

File with the county director of tax equalization in the county where your home is located. Bring your DD-214, VA disability certification showing your rating percentage, and proof of homestead ownership and occupancy.

The Bottom Line Up Front

North Dakota provides a proportional property tax credit for veterans with 50% or greater service-connected disability, applied against the first $180,000 of true and full value of your homestead. A 100% disabled veteran gets a credit covering the full tax on $180,000 of value — approximately $1,692 per year at the state average rate of 0.94%. A 70% veteran gets 70% of that credit ($1,184/year), and a 50% veteran gets 50% ($846/year). This proportional structure is more equitable than states that require 100% P&T for any benefit at all. With Minot AFB and Grand Forks AFB driving military home purchases, North Dakota’s credit provides moderate but reliable tax relief in affordable markets.

North Dakota’s approach stands out because it scales with your disability rating rather than creating an all-or-nothing threshold. If you are at 60% and later increase to 80%, your credit increases proportionally without needing to hit a specific cutoff. The $180,000 cap on eligible value means the credit covers most or all of the property tax on homes near Minot AFB and Grand Forks AFB, where median prices run $285,000 to $295,000. On homes above $180,000, you still pay full taxes on the value above the cap.

What To Do Based On Your Situation

Buying near Minot or Grand Forks AFB: Factor the credit into your preapproval math. With median homes around $287,000 to $293,000, the credit covers taxes on the first $180,000 of value — roughly 62% of the home’s taxable base at 100% disability.
Already own a home in North Dakota: If you have not applied for the credit, file with your county director of tax equalization immediately. Bring your DD-214 and VA disability certification.
Rating change pending: Apply now at your current rating. If your rating increases later, notify the county and your credit will be recalculated proportionally.

How Does North Dakota’s Benefit Structure Work?

North Dakota’s credit under NDCC §57-02-08.8 is straightforward: your disability percentage times the property tax on the first $180,000 of true and full value equals your credit. The credit is applied directly against your property tax bill. Any tax on home value above $180,000 is paid in full.

Disability rating	Credit on first $180K at 0.94%	Annual credit amount	Monthly savings
100%	100% of $1,692	$1,692	$141
90%	90% of $1,692	$1,523	$127
80%	80% of $1,692	$1,354	$113
70%	70% of $1,692	$1,184	$99
60%	60% of $1,692	$1,015	$85
50%	50% of $1,692	$846	$71

The $180,000 cap refers to “true and full value” — essentially market value as assessed by the county. North Dakota assesses property at a percentage of true and full value for tax purposes, and the credit is calculated against the true and full value before assessment ratios are applied.

Deal Math: A veteran with 100% P&T disability buying a $287,000 home near Minot AFB at 0.94% effective rate: annual tax without credit is $2,698. The credit covers 100% of the tax on the first $180,000 ($1,692), leaving $1,006 in annual taxes on the remaining $107,000 of value. Monthly savings: $141. Combined with the VA funding fee exemption (saving $6,171 on a $287,000 loan), the total first-year benefit is $7,863.

What Is The Benefit Worth In Real Dollars?

North Dakota’s effective property tax rate of approximately 0.94% is slightly below the national average. Home prices near the two major Air Force bases are moderate, making the $180,000 cap cover a substantial portion of most homes in base communities. In Fargo and Bismarck, higher home prices mean the cap covers a smaller share.

Home value	Effective rate	Annual tax (no credit)	With 100% credit	With 70% credit	Monthly savings (100%)
$180,000	0.94%	$1,692	$0	$508	$141
$250,000	0.94%	$2,350	$658	$1,166	$141
$287,000	0.94%	$2,698	$1,006	$1,514	$141
$350,000	0.94%	$3,290	$1,598	$2,106	$141

Home Search Impact: The maximum credit of $1,692/year ($141/month) at 100% disability translates to approximately $17,000 in additional purchasing power at 6.5%. For homes priced at or below $180,000, the credit can eliminate your property tax bill entirely. Near Minot AFB where some homes are priced in the $200,000 to $250,000 range, the credit covers the majority of the tax burden.

How Does This Affect Your VA Loan Qualification?

The property tax credit directly reduces the escrow portion of your monthly PITI, improving your debt-to-income ratio for VA loan qualification. Because the credit scales with your disability rating, even a 50% rated veteran sees measurable improvement in their file.

PITI impact: On a $287,000 home at 6.5% with $0 down, the 100% credit reduces your monthly escrow by $141. That drops your PITI from roughly $1,960 to $1,819.
DTI improvement: At $5,500/month gross income, that $141 reduction drops your housing DTI from 35.6% to 33.1% — a solid 2.5-point improvement that can make the difference on a borderline file.
Proportional advantage: A 70% rated veteran still saves $99/month, improving DTI by approximately 1.8 points. Even the 50% minimum saves $71/month — enough to shift your file in many cases.
Escrow adjustment: If you close before the credit is approved, your lender escrows for the full tax amount. Once the credit appears on your tax bill, request an escrow re-analysis.

Next step:
See What You Qualify For With North Dakota’s Veteran Tax Credit

Who Is Eligible For North Dakota’s Veteran Property Tax Credit?

Eligibility under NDCC §57-02-08.8 requires three things: honorable discharge from the U.S. Armed Forces, a service-connected disability rating of 50% or greater from the VA, and ownership and occupancy of the property as your homestead on the assessment date. The veteran must reside on the property and have an ownership interest as of the assessment date.

Veterans with extra-schedular ratings that bring the total disability to 100% also qualify for the full credit. TDIU (Total Disability Individual Unemployability) qualifies if the VA compensates at the corresponding rate. The credit is available to the surviving spouse if the veteran is deceased, provided the spouse maintains homestead occupancy.

First-time applicants must provide a DD-214 showing honorable discharge and a VA certificate showing the disability rating percentage. If the rating changes, provide updated certification to adjust the credit amount.

How Do You Apply For North Dakota’s Credit?

Apply through the county director of tax equalization in the county where your homestead is located. North Dakota has 53 counties, and each processes applications independently.

Gather documents: DD-214 showing honorable discharge, VA certificate of disability rating showing 50% or greater service-connected disability, proof of homestead ownership and occupancy.
Contact your county: Ward County (Minot AFB), Grand Forks County (Grand Forks AFB), Burleigh County (Bismarck), Cass County (Fargo). Search “[Your County] director of tax equalization North Dakota.”
Submit application: File the Application for Disabled Veteran’s Property Tax Credit with your county. First-time applicants provide DD-214 and VA certification. Subsequent years may only require updated certification if the rating changes.
Credit applied: Once approved, the credit appears on your property tax statement. Contact your mortgage servicer to request an escrow re-analysis.

Process Watchpoint: Apply as soon as possible after closing. The credit is tied to the assessment date — if you miss the filing window for the current year, you may need to wait until the next assessment cycle. If you PCS to Minot AFB or Grand Forks AFB and close on a home mid-year, verify with the county whether the credit can be applied to the current tax year or if it takes effect the following year.

Where Do North Dakota Veterans File By Base?

Minot AFB (Ward County) and Grand Forks AFB (Grand Forks County) are North Dakota’s two major active-duty installations. Both are located in affordable housing markets where the $180,000 credit cap covers a significant portion of home values.

Military installation	County	Approx. effective rate	Annual credit (100% rating)	Median home price (2026 est.)
Minot AFB	Ward	0.98%	$1,764	$287,000
Grand Forks AFB	Grand Forks	0.96%	$1,728	$293,000
Bismarck (Guard/Reserve)	Burleigh	0.90%	$1,620	$310,000
Fargo	Cass	0.95%	$1,710	$330,000

Do Surviving Spouses Keep The Benefit?

Yes. Under NDCC §57-02-08.8, the surviving spouse of a deceased qualifying veteran is eligible for the property tax credit. The surviving spouse must continue to own and occupy the property as a homestead. The credit continues at the same rate as the deceased veteran’s disability rating. If the surviving spouse remarries or moves out of the homestead, the credit terminates.

To maintain the credit, the surviving spouse should notify the county director of tax equalization of the veteran’s death and provide proof of continued homestead occupancy. The transition is typically straightforward in North Dakota.

How Does The Benefit Change Your VA Loan Math?

North Dakota’s proportional credit structure provides measurable improvement to your VA loan qualification regardless of whether you are at 50% or 100% disability. The credit reduces your monthly escrow, which lowers your PITI and improves your DTI ratio.

Example — Minot AFB area: $287,000 purchase, 6.5% rate, $0 down, 0.98% effective rate. Without credit: $2,049/month PITI. With 100% credit: $1,902/month. The $147/month difference at $5,500 gross monthly income moves your housing DTI from 37.3% to 34.6%.
Funding fee interaction: 100% P&T veterans are also exempt from the VA funding fee, saving $6,171 on a $287,000 loan. Veterans at 50-90% disability get the proportional property tax credit but still pay the funding fee.
Grand Forks note: Grand Forks homes are priced similarly to Minot — median around $293,000. At this price, the $180,000 cap covers about 61% of the home’s value. The remaining 39% is taxed at the full rate.

Deal Math: A veteran with 70% disability buying a $287,000 home near Minot AFB at 6.5%: principal and interest is $1,815/month. Add homeowner’s insurance ($115/month) and property taxes ($234/month before credit). Total PITI: $2,164. The 70% credit eliminates $1,184/year ($99/month) from taxes, dropping PITI to $2,065. If the veteran later reaches 100% P&T, the credit increases to $1,764/year and the VA funding fee on a future purchase or refinance is waived entirely.

Next step:
Check Your VA Loan Eligibility

The Bottom Line

North Dakota’s disabled veteran property tax credit is one of the more equitable programs in the country. It scales proportionally with your disability rating (50%+) and applies against the first $180,000 of true and full value. At the state average rate of 0.94%, a 100% disabled veteran saves approximately $1,692 per year ($141/month), while a 50% veteran saves $846/year ($71/month). Near Minot AFB and Grand Forks AFB, affordable home prices mean the $180,000 cap covers a substantial share of the tax base. Apply with your county director of tax equalization after closing.

Frequently Asked Questions

Is North Dakota’s veteran benefit a credit or an exemption?

It is a tax credit — applied directly against your property tax bill. The credit equals your disability percentage times the tax on the first $180,000 of true and full value. It reduces the amount you owe dollar-for-dollar.

What disability rating do I need for North Dakota’s credit?

50% or greater service-connected disability. The credit is proportional — a 50% veteran gets 50% of the maximum credit, and a 100% veteran gets the full credit.

What is the $180,000 cap?

The credit applies only to the first $180,000 of true and full (market) value of your homestead. Property value above $180,000 is taxed at the full rate with no credit. On a $287,000 home, you pay full taxes on the $107,000 above the cap.

Does TDIU qualify for the North Dakota credit?

If the VA compensates you at a rate corresponding to 50% or greater disability, you should qualify. Provide your VA certification showing the compensation rate to the county.

Do I need to reapply every year?

First-time applicants must submit DD-214 and VA certification. Subsequent years typically require only updated VA certification if your rating changes. Confirm renewal requirements with your county director of tax equalization.

Can I combine this with the VA funding fee waiver?

Yes. The VA funding fee exemption (for 100% P&T veterans) and North Dakota’s property tax credit are separate benefits. Veterans at 50-90% disability get the state credit but still pay the VA funding fee.

What about the new Primary Residence Credit?

North Dakota also offers a Primary Residence Credit that may provide additional savings. This is separate from the disabled veteran credit. Check with the ND Tax Commissioner’s office to see if you qualify for both.

Can I get the credit on a second home or rental property?

No. The credit applies only to your homestead — the property you own and occupy as your primary residence. Investment properties, rentals, and second homes do not qualify.

How does North Dakota compare to other states?

North Dakota’s proportional system is more equitable than most states. Many states offer nothing below 100% P&T. The $180,000 value cap is the main limitation — in higher-priced markets, it covers less of the tax burden. Near military bases, it covers a solid share of typical home values.

Will my lender adjust my escrow after the credit is approved?

Not automatically. Once the credit appears on your property tax bill, request an escrow re-analysis from your mortgage servicer. Your monthly payment will decrease and any overage will be refunded.

What if my disability rating changes?

Notify your county director of tax equalization and provide updated VA certification. If your rating increases, your credit increases proportionally. If it drops below 50%, you lose the credit entirely.

Does the surviving spouse need to reapply?

The surviving spouse should notify the county of the veteran’s death and provide proof of continued homestead occupancy. The credit continues at the veteran’s last certified disability rate as long as the spouse maintains the homestead.