Updated October 4, 2026. Quick answer: No. The Tax Commissioner’s guideline says “The deduction is equal to the taxable amount of the benefits reported” on the federal return, for military retirement benefit payments to retired armed forces, Reserve and National Guard members or their surviving spouses.
More state retirement-income schedules, line by line: North Dakota ND-1 retirement lines.
How North Dakota treats military retired pay
| Item | What the documents say |
|---|---|
| Treatment | Subtracted from North Dakota taxable income, equal to the taxable amount reported on the federal return |
| Who qualifies | Retired members of the Army, Navy, Air Force, Marine Corps and Coast Guard, Reserve and National Guard members, surviving spouses, and dual status military technicians |
| Cap or age | None printed |
| Rates on other income | The statute’s single-filer schedule prints 0.00% up to $44,725, 1.95% to $225,975 and 2.50% above that; the tax year those brackets apply to is not stated |
A $30,000 example
A retiree with $30,000 of military retired pay in federal taxable income subtracts all $30,000, so none of that pay is left to tax.
Optional adviser-matching service
Plan military retirement income alongside your investments
For U.S. investors with $250,000 or more in investable assets. Want help coordinating retirement income with your investments? Request adviser introductions through WiserAdvisor.
This is investment-adviser matching, not tax-return preparation.
WiserAdvisor is an independent matching service. Free to request, with no obligation to hire. Request up to three adviser introductions; a match is not guaranteed. Submitting its form allows calls, texts and emails from WiserAdvisor and up to three advisers.
Clear Money Guide may earn a referral payment for a qualifying completed form. Advisers pay for introductions; an introduction is not a Clear Money Guide recommendation.
Compare investment advisersOpens on WiserAdvisor’s site in a new tab.
What changes in 2026
No 2026 change is printed in the documents read.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Publication 3, Armed Forces’ Tax Guide.
Related: whether North Dakota taxes pensions, how North Dakota taxes retirement income, military retirement pay by state, and the military retirement calculator.
Sources
- Guideline: Income Tax: Military Service Members: https://www.tax.nd.gov/sites/www/files/documents/guidelines/individual/military-service-members.pdf
- North Dakota Century Code Chapter 57-38 Income Tax: https://ndlegis.gov/cencode/t57c38.pdf
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.