Disabled Veteran Property Tax Exemption in North Dakota (2026)

Last reviewed August 26, 2026. Every figure, form and deadline on this page is re-checked against the state’s own government sources once a quarter, and the date above is updated when we do it.

North Dakota’s disabled veteran property tax credit wipes out up to $9,000 of your home’s taxable value, scaled to your VA disability percentage, if you are rated 50 percent or greater or paid at the 100 percent rate for individual unemployability. Because North Dakota taxes only a small slice of a home’s actual value, that $9,000 credit is worth more than it looks.

You apply with your county’s Application for Disabled Veterans Property Tax Credit by April 1, and your rating has to be in place on the state’s February 1 assessment date to count for that tax year. There is no income test.

How much is the North Dakota credit worth?

Disability percentage	Maximum reduction of taxable value
100% (or 100% rate for individual unemployability)	$9,000
90%	$8,100
80%	$7,200
70%	$6,300
60%	$5,400
50%	$4,500

The credit is a straight-line percentage of your VA disability rating applied against the first $9,000 of your homestead’s taxable value. Rated 65 percent and the state rounds down to your certified whole-percentage rating from the VA, not up to the next table line.

Taxable value is not market value, and that trips almost everyone up

North Dakota does not tax your home’s full market value. Two steps shrink it first. Assessed value is set at 50 percent of a property’s true and full value, and residential taxable value is then set at 9 percent of that assessed value. Multiply it out and taxable value works out to about 4.5 percent of what your home is actually worth. The state’s own Homestead Property Tax Credit table confirms the ratio directly: a $9,000 reduction in taxable value lines up with roughly $200,000 of true and full value protected.

That means a veteran rated 100 percent is not getting a “$9,000 exemption” in any everyday sense. On a typical home, the credit is shielding something in the neighborhood of $200,000 of the house’s value from taxation, at the full 4.5 percent rate. A lot of national summaries just repeat the $9,000 figure without that translation and make North Dakota’s credit sound tiny next to a state like Ohio or Texas. It is not tiny once you convert it.

What that is worth in actual dollars off your bill depends on your local mill rate, which varies by city, county and school district. Your county director of tax equalization can tell you the mill rate that applies to your specific parcel.

Who qualifies in North Dakota?

To claim the credit in North Dakota you must meet all of these:

• Have a service-connected disability rating of 50 percent or greater from the VA, or be a disabled veteran with an extra-schedular rating, including individual unemployability, that results in being paid at the 100 percent rate.
• Have been discharged under honorable conditions or be retired from the U.S. Armed Forces.
• Reside on the property and have an ownership interest in it as of the assessment date.

The percentage of credit you get equals your certified disability compensation rating. There is no cliff at 100 percent the way some states run it. Fifty percent gets you a partial credit, not zero.

No income or asset test

North Dakota’s statute says the veteran’s income and assets do not affect eligibility for this credit. That is a real distinction inside the state’s own property tax rules, because the separate ordinary Homestead Property Tax Credit for seniors and the permanently and totally disabled does cap out at $70,000 of household income. If you qualify for the veteran credit, that income limit does not apply to you.

Married couples and co-owners

If two disabled veterans are married to each other and living together, their combined credit cannot exceed 100 percent of $9,000 of taxable value on the shared homestead. If a disabled veteran co-owns the home with someone other than a spouse, parent or child, the credit is limited to that veteran’s ownership share.

Surviving spouses

An unremarried surviving spouse of a qualifying disabled veteran keeps the credit at the veteran’s certified percentage. A surviving spouse who receives VA dependency and indemnity compensation gets the full 100 percent credit, regardless of what the veteran’s rating was.

Moving mid-year

The credit is portable. Sell one home and buy another in the same year and the state’s own guideline walks through prorating the credit by the number of months you owned and occupied each property, so you are not shut out just because you moved.

Can the credit be used before closing?

Sometimes, and the date that controls it is unusually specific. North Dakota sets its assessment date at February 1. The state’s own guideline is direct about it: “The veteran must have 50% or greater service-connected disability on the assessment date. The percentage rating on the assessment date applies for the whole year.” You also have to own and occupy the homestead by that date.

So the practical answer for a purchase: close and move in before February 1 of the year you want the credit, and already hold the qualifying rating, and you can apply by the April 1 deadline for that same tax year. Close on or after February 1 and the earliest tax year you can use is the next one, which you apply for by the following April 1.

That is a tighter and, in one sense, more forgiving window than a state that ties everything to January 1 of the prior year. A veteran who closes in mid-January can still get the credit on that year’s bill. A veteran who closes in March has to wait roughly a year.

Four states put a pre-purchase determination in the statute. North Dakota is not one of them

State rule. Four states let a qualifying veteran get something in writing from the taxing authority before they own the home:

• Virginia: file the normal exemption paperwork plus documentation of the purchase agreement and the commissioner of the revenue must process it and send an approval or denial letter, with the exemption amount, within 20 business days. Va. Code § 58.1-3219.6(B). The exemption itself takes effect only after you become the owner.
• Maryland: you may apply for a specific dwelling you intend to purchase, and the Department of Assessments and Taxation must send a preliminary approval or denial, with the amount, within 15 business days. Md. Code, Tax-Property § 7-208(d)(5). No second application is needed once you own it.
• Utah: a qualifying disabled veteran claimant may apply before owning the residence with a real estate purchase contract, filed in the county where the home sits, and the county must send a receipt with preliminary approval or denial and the calculated amount within 15 business days. Utah Code § 59-2a-502(5).
• Alabama: for closings on or after October 1, 2026, the tax assessing official issues a tentative certificate of permanent and total disability before purchase, within 20 days, and the statute says a settlement agent or loan closing officer may not consider the homestead ad valorem taxes when calculating debt-to-income once you hand over that certificate. Ala. Code § 40-9-21.3.

One correction worth having, because it gets repeated a lot: outside of Alabama these laws bind the county or the state tax office, not your lender. They force the taxing authority to answer you in writing before closing. They do not order a lender to waive or exclude the tax. Alabama is the only one of the four that reaches into the loan file itself. North Carolina has a bill that would add a prequalification process, House Bill 94, which passed the House 112 to 0 in May 2025 and has sat in Senate Rules since. It is not law, so do not plan around it.

In North Dakota it is a lender decision, so shop it

Lender overlay and market practice. There is no North Dakota statute telling the taxing authority to pre-approve you before you own the home, so whether this benefit helps you qualify comes down to lender policy. Here is what that looks like in practice, from lender guidance we collected directly in August 2026:

• Some lenders will use the reduced tax figure before closing, and some will not. One wholesale lender told us plainly it will consider a veteran real estate tax exemption and a reduced property tax number in the qualifying payment, as long as underwriting gets the local exemption rules and proof you meet them. If the documentation is short, underwriting uses the full tax amount instead. Another wholesaler checks it state by state and county by county on every single closing. If your lender says no, that is not the final answer on the benefit. It is that lender’s answer. Ask another one.
• Every lender will require proof of eligibility if the lower tax is doing work in your file. If the reduced tax is what lowers your debt ratio or raises your residual income, expect to document it: your VA rating decision or award letter showing the qualifying disability, the taxing authority’s own published exemption rules, and usually the completed exemption application. One lender’s VA guide requires proof of 100 percent disability from VA plus a copy of the completed county application for property tax exemption, and where the application has to be notarized it takes an unsigned copy up front and conditions it to be signed at closing.

Lender overlays apply everywhere. State permission is not lender permission. One large investor allows the anticipated reduced tax for qualifying only for primary residences in California, Florida, Maryland, Texas, Utah and Virginia, and only with proof the veteran applied to the taxing authority before the note date. North Dakota is not on that list.

Practically, ask your loan officer two questions before you write an offer: will you use a reduced tax figure to qualify me, and will you waive the tax escrow. Different lenders give different answers on the same file, and that is normal, not a mistake.

What we can do instead: waive the escrow

If the exemption cannot be counted yet, the fallback is to not escrow the taxes at all, so your monthly housing expense is not carrying twelve months of a tax bill that is about to shrink. VA does not require escrows, so this is a lender and investor decision, and many will allow it on a strong file. There are lenders that will waive the tax escrow on a VA loan even when the property taxes have not been waived yet, so this is a real option and not a rare favor. Some will waive it with no restrictions at all, others want the eligibility proof and the correct paperwork in the file first. Waiving escrow does not require the taxing authority to approve anything, which is why it is usually the easier ask of the two. Understand the tradeoff: with no escrow account, you pay the taxing authority directly and you are on your own for those tax bills until the exemption is actually approved, and approval can take a while. Budget for it and pay the bill on time; a delinquent tax bill on a home you just bought is an expensive way to save a few dollars of monthly payment.

One more VA rule to know, because it runs the other way. On estimating taxes, Chapter 4 says “If taxes are expected to increase, use the increased amount.” There is no matching VA instruction that lets an underwriter write down your taxes, which is why the reduction is always a lender option and never a VA entitlement. The Chapter 4 text is here if you want to read it.

Plan for the gap between closing and approval

These applications take a while to process, and the taxing authority’s calendar does not wait for your loan. A tax bill can come due between your closing date and the day your exemption is approved, and you are the owner, so that bill is yours. That can include taxes attributable to the period the prior owner held the home. One lender’s VA guide makes it explicit and requires a signed letter of explanation from the veteran borrower stating they are solely responsible for the property taxes owed for the prior owner. Keep the money set aside and do not assume the first bill will be reduced, especially if you waived escrow and North Dakota is billing you directly.

How to apply in North Dakota, step by step

1. Get the Application for Disabled Veterans Property Tax Credit from the North Dakota Office of State Tax Commissioner (PDF download) or your county’s assessment office.
2. Attach your documents. A copy of your DD214 showing an honorable discharge or retirement, and a certificate from the U.S. Department of Veterans Affairs certifying your disability percentage. If you are on individual unemployability, attach the award letter showing the 100 percent compensation rate.
3. File it with your local assessor or county director of tax equalization, whichever office handles assessments where your home is. Use the North Dakota Association of Counties county officials directory to find the right office and contact by county, department or name for all 53 counties.
4. File by April 1 of the year the property is assessed and for which you want the credit. Your rating and your ownership and occupancy both have to be in place on the February 1 assessment date for that same year.
5. You generally do not refile every year. The credit is automatically applied once you qualify, though the county can ask you to furnish updated information in a later year to support the claim.

If you move to a new homestead mid-year, the credit is portable. The state’s guideline walks through prorating it month by month between the old and new home, so bring your paperwork when you register the new address with the county.

Can you get a refund of prior year taxes?

North Dakota does not print a “late application for prior year” box the way some states do. The statute instead gives county commissioners the authority to cancel unpaid taxes representing the credit for any year the veteran held title, and it lets the county auditor and the state tax commissioner make supplemental certifications and payments after the normal dates “to make such corrections as may be necessary because of errors or because of approval of an application for abatement.”

In plain terms: if you missed the April 1 deadline for a year you actually qualified in, the path back is your county’s standard property tax abatement and refund process, not a special veteran late-filing form. Bring your VA certification and DD214 to your county director of tax equalization and ask them to apply the credit through an abatement for the year you missed. How far back they can go, and whether it comes as a credit on unpaid taxes or a refund of taxes already paid, depends on the timing and your county’s own process.

Because the mechanism runs through the general abatement statute rather than a dedicated late-veteran form, confirm the current deadlines and paperwork directly with your county before assuming a specific number of years back.

Other North Dakota programs for disabled veterans

The disabled veteran credit is the big one on the property tax side, but North Dakota runs a few other programs worth knowing about.

• Homestead Property Tax Credit (state, not veteran-specific). For owners 65 or older, or permanently and totally disabled, with household income at or under $70,000. Income up to $40,000 gets a 100 percent reduction of up to $9,000 of taxable value, income from $40,001 to $70,000 gets a 50 percent reduction of up to $4,500. Unlike the disabled veteran credit, this one is means tested. A veteran who does not meet the 50 percent disability threshold but is 65 or older may still qualify here. ND Office of State Tax Commissioner, Homestead Property Tax Credit.
• Primary Residence Credit (state, all homeowners). Up to $1,600 against the property tax due on your primary residence, no age or income limit, one per household. You apply online at tax.nd.gov between January 1 and April 1 each year. This stacks with the disabled veteran credit; the state applies it after other exemptions and credits. ND Office of State Tax Commissioner, Primary Residence Credit.
• ND Department of Veterans Affairs Hardship Grant (state). Emergency financial assistance for veterans facing an unforeseen financial or personal hardship, administered with the state’s network of Local Veterans Service Officers. Contact a ND VSO for eligibility and current award details.
• State income tax. VA disability compensation is not taxable income at the federal or state level to begin with, so it never enters into either the income test on the Homestead credit or the Primary Residence Credit.

North Dakota disabled veteran property tax FAQs

How much is North Dakota’s disabled veteran property tax credit worth?

At a 100 percent disability rating the credit wipes out the first $9,000 of your home’s taxable value. North Dakota only taxes 4.5 percent of a home’s true and full value for residential property, so $9,000 of taxable value works out to roughly $200,000 of actual home value shielded at the top tier. Below 100 percent the credit scales down with your rating.

Why does the $9,000 figure sound so small next to other states?

Because $9,000 is a taxable-value number, not a market-value number, and most write-ups never translate it. North Dakota taxes residential property at 9 percent of assessed value, and assessed value is 50 percent of true and full value, so taxable value is about 4.5 percent of what your home is worth. The credit is bigger than the headline number suggests.

Do you need a 100 percent VA rating in North Dakota?

No. You qualify at 50 percent or greater, or at the 100 percent compensation rate for individual unemployability. The credit is not all-or-nothing, it is scaled to your certified disability percentage between 50 and 100 percent.

What is the application deadline in North Dakota?

April 1 of the year the property is assessed and for which you want the credit. Your VA rating has to be in place on the assessment date, February 1 of that same year, for it to count for that year’s tax bill.

Can two disabled veterans married to each other both claim the credit?

You can both apply, but if you are married to each other and living together your combined credit cannot exceed 100 percent of $9,000 of taxable value on the shared homestead.

Does a surviving spouse keep the North Dakota credit?

Yes. An unremarried surviving spouse of a qualifying disabled veteran continues the credit at the veteran’s certified percentage. A surviving spouse who receives VA dependency and indemnity compensation gets the full 100 percent credit regardless of the veteran’s prior rating.

Can you use the credit in the year you buy a home in North Dakota?

Only if you close, move in, and already hold the qualifying rating before February 1, the assessment date. Buy and occupy the home before that date and apply by April 1 and you can get the credit for that same tax year. Close on or after February 1 and the earliest you can claim it is the following year.

Is North Dakota’s disabled veteran credit means tested?

No. The statute is explicit that the veteran’s income and assets do not affect eligibility. That is different from North Dakota’s ordinary Homestead Property Tax Credit for seniors and the disabled, which does have a $70,000 income cap.

Where to go next

• Disabled Veteran Property Tax Exemption Guide, every state’s exemption, form and deadline in one directory
• The complete guide to VA home loans
• Funding Fee Waivers and Refunds Guide, the fee is waived outright at a 10 percent rating or higher, and can be refunded if you already paid it
• Property tax discounts for veterans on VA disability, the national overview
• ND Office of State Tax Commissioner, Disabled Veteran’s Property Tax Credit
• North Dakota Century Code Chapter 57-02 (PDF download), the statute behind the credit and the taxable-value math
• Directory of all North Dakota county officials, including assessors and tax directors