BISMARCK, ND (KXNET) — As part of the ongoing effort to make North Dakota the most military-friendly state, Governor Doug Burgum signed a bill exempting military pay from state income tax for active duty members.

Senate Bill 2293 is estimated to reduce North Dakota service members’ income taxes by $4 million in the 2023-25 biennium.

Military pay encompasses all federal pay for training, education, mobilization, and bonuses.

Currently 12 states fully exempt military income from state income tax and 14 states partially exempt it.

“We join 20 other states that do not tax military income,” said Governor Burgum. “North Dakota is recognizing the sacrifice of military service and building on the momentum of our ongoing efforts to make ours the most military-friendly state in the nation.”

The Bill passed the House with an 89 to 3 vote and the Senate with a 40-4 vote.