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Market Value Exclusion for Veterans with a Disability

$150,000 of market value excluded at a 70% rating — $300,000 at total and permanent — before your property tax is calculated. It survives the veteran: a surviving spouse keeps the exclusion until remarriage or disposal of the property, and the spouse of a member who dies from a service-connected cause in active service is entitled to the full $300,000 on the same terms.

Verified August 27, 2026

What this benefit is

$150,000 of market value excluded at a 70% rating — $300,000 at total and permanent — before your property tax is calculated. It survives the veteran: a surviving spouse keeps the exclusion until remarriage or disposal of the property, and the spouse of a member who dies from a service-connected cause in active service is entitled to the full $300,000 on the same terms.

What it's worth: $150,000 of market value excluded at 70%+; $300,000 at total and permanent

  • The exclusion removes market value before tax is calculated. What that saves in dollars depends on your local tax rates, which we do not yet hold for Minnesota.
  • On an agricultural homestead, only the house, garage and immediately surrounding one acre qualify.
  • Subdivision 34 paragraph (c): the exclusion carries to the surviving spouse of a 100% permanently disabled veteran until the spouse remarries, or sells, transfers or otherwise disposes of the property.
  • Paragraph (d): the spouse of a service member who dies due to a service-connected cause while serving honorably in active service is entitled to the $300,000 exclusion on the same terms.
  • The Department of Revenue states that a surviving spouse receiving Dependency and Indemnity Compensation also qualifies.
  • A surviving spouse may move the exclusion to a new property of no greater market value, by applying by 31 December.
  • The amounts are $150,000 and $300,000 and have not moved. The subdivision was last amended in 2021; an increase to $165,000 and $330,000 has circulated but appears in neither the statute nor the department's page.

Who is entitled to it

  • You served in the U.S. armed forces.
  • You were honorably discharged, as your DD214 shows.
  • Your service-connected rating is 70% or more.
  • You own and occupy the property as your homestead.
  • Your home is in Minnesota.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

Deadline: December 31 of the first assessment year
  1. 1Apply to the county assessor by December 31 of the first assessment year you want the exclusion for.
  2. 2If your rating is total and permanent, make sure the VA letter says so in those words — it doubles the exclusion from $150,000 to $300,000.
  3. 3If the veteran in your family cannot own a homestead, ask the assessor about the primary family caregiver route — the caregiver’s homestead can carry the exclusion the veteran would have had.
Form
Market value exclusion application, with your DD214 and VA rating documentation
File with
Your county assessor
Documents you will need
dd214 · va benefit summary letter
No renewal
Once granted it does not need renewing.
Worth knowingThis excludes market VALUE, not tax. $300,000 excluded is not $300,000 saved — the saving is the excluded value run through your local tax capacity rates, and we do not yet hold Minnesota rates, so we publish the exclusion and not a dollar figure.
Worth knowingA surviving spouse keeps the $300,000 exclusion until they remarry or sell — and can move it once to a new homestead if its market value does not exceed what the old one sold for. That portability is rare in this corpus.
Worth knowingThe primary family caregiver provision is the one nobody mentions: where the veteran owns no Minnesota homestead, the homestead of their VA-approved primary family caregiver can carry the exclusion instead.
Known gapWe publish the two statutory tiers and not your county’s arithmetic. Minnesota computes tax through class rates and tax capacity, and we have not researched county rates here.

Sources

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.