Minnesota Veteran DMV Benefits | Free DV Plates, Vehicle Tax Exemption & Complete Guide

Minnesota is home to approximately 310,000 veterans, concentrated around the Twin Cities metro, Fort Snelling, Camp Ripley, and the Minneapolis VA Health Care System — one of the busiest VA medical centers in the Midwest. Minnesota’s veteran benefit system received a landmark overhaul in 2023–2024 that most guides still haven’t fully explained: 100% SC and TDIU veterans now get free registration on TWO vehicles, a full Motor Vehicle Sales Tax exemption, and a free driver’s license — all enacted January 1, 2024. Add to this a two-tier property tax Market Value Exclusion system starting at 70% SC, one of the most generous hunting/fishing benefit packages in the Midwest, a free state park pass for all disabled veterans, and a unique Veterans Campground on Big Marine Lake — and Minnesota delivers substantial ongoing financial value.

This guide covers every benefit, form number, deadline, and rejection scenario that Minnesota veterans actually face.

Minnesota Veteran DMV Benefits — Complete 2026 Overview

A full breakdown of Minnesota’s DMV, tax, and outdoor benefits for veterans.

BenefitWho QualifiesWhat You GetAnnual Value
Free Registration — Up to 2 Vehicles100% SC or TDIU, honorable dischargeFull registration + plate + title fees waived (2 vehicles)$300–$600/year
Motor Vehicle Sales Tax Exemption100% SC or TDIU (since July 1, 2024)Full sales tax waived on vehicle purchase$1,500–$4,500 one-time
Free Driver’s License / State ID100% P&T SC (includes TDIU)All DL/ID fees waived permanently$45–$65/renewal
Veteran Designation on DL/IDAny honorably discharged veteranFree “VETERAN” designation (expanded documentation accepted)Discount access
Property Tax — $300K Market Value Exclusion100% P&T SC or TDIU$300,000 deducted from taxable home value$2,000–$8,000+/year
Property Tax — $150K Exclusion70–99% SC$150,000 deducted from taxable home value$1,000–$4,000/year
Free Annual State Park PassDisabled veterans, active duty, Purple HeartFree entry to all Minnesota state parks$35–$80/year
Free Hunting & Fishing — Full Package100% SCFree deer + small game + permanent fishing + permit priority$100–$150/year
Veterans Campground (Big Marine Lake)All who served + familiesDiscounted veteran-only camping facilityVariable
Active Duty Pay Tax ExemptionMN resident active duty membersMilitary active duty income not taxedVariable
CDL Skills Test WaiverVeterans with qualifying military CMV experienceSkip CDL road test$3,000–$10,000 one-time

Key Insight: Minnesota stands out for its vehicle-related savings and strong property tax reductions. The combination of 2 free vehicles, sales tax exemption, and up to $300K property tax exclusion makes it one of the most balanced states financially for 100% disabled veterans — especially for homeowners.

Minnesota veteran DMV benefits
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The 2024 Law — Two Vehicles, Sales Tax Exempt, Free DL

This is the most important change to Minnesota veteran vehicle benefits in decades, enacted in 2023 and effective January 1, 2024. Most general veteran benefit sites have not yet fully explained all three components together.

Component 1 — Free Registration on TWO Vehicles

Effective January 1, 2024, Veterans with a 100% total service-connected disability — including TDIU — receive free motor vehicle registration, plate, and title services for up to two vehicles (auto, pickup, RV, motorcycle). North Shore Journal

What this means: Unlike most states that exempt one vehicle, Minnesota now exempts up to two. A veteran with a truck and a motorcycle, or a sedan and an RV, can have both completely free of registration fees, plate fees, and title fees.

Vehicle types that qualify: Passenger vehicles, one-ton pickups, motorcycles, and RVs/self-propelled recreational vehicles. Trailers and commercial vehicles do not qualify.

The TDIU inclusion is critical: TDIU veterans — those rated individually unemployable by the VA — qualify on equal footing with 100% P&T veterans. Many Minnesota veterans with TDIU status were unaware they qualify until the new law clarified this.

What is NOT exempt: Personalized plate fees and required specialty plate contributions are still charged. The exemption covers standard registration, title, and plate fees only.

Component 2 — Motor Vehicle Sales Tax Exemption

Starting July 1, 2024, purchases of a motor vehicle by a Veteran having a 100% total service-connected disability — including TDIU — are exempt from the Motor Vehicle Sales Tax. North Shore Journal

Minnesota’s Motor Vehicle Sales Tax (MVST) rate is 6.5% on the purchase price. On a new $40,000 pickup truck, this exemption saves $2,600 at the time of purchase. On a $55,000 SUV, savings reach $3,575.

How it works at the dealership: Automobile dealers should have a new drop-down selection in their processing system for 100% disabled Veterans that will exclude the fees. North Shore Journal Tell your dealer before finalizing the purchase that you qualify for the 100% disabled veteran MVST exemption. Bring your VA Summary of Benefits Letter showing 100% SC or TDIU status and your DD-214.

If sales tax was already paid: Veterans who purchased a vehicle after July 1, 2024 and paid sales tax may be eligible for a refund. File a Claim for Motor Vehicle Refund with the Minnesota Department of Revenue.

Used vehicles: The sales tax exemption applies to both new and used vehicle purchases.

Component 3 — Free Driver’s License and State ID

Veterans with a 100% total and permanent service-connected disability rating receive free driver’s license or state-issued ID card. The applicant must provide documentation attesting to the 100% total and permanent service-connected disability rating, which includes TDIU.

Minnesota’s standard driver’s license renewal fee is approximately $32–$42 depending on license class. With lifetime renewals free, this saves $32–$42 every four years permanently.

All three benefits use the same documentation: VA Summary of Benefits Letter showing 100% SC or TDIU, DD-214 with honorable conditions discharge. Apply at any Minnesota Deputy Registrar office.

Property Tax — Market Value Exclusion: Minnesota’s Two-Tier System

Minnesota’s property tax benefit for veterans is called the Market Value Exclusion — not an exemption. The distinction matters: rather than eliminating taxes outright, it reduces the assessed taxable value of the home, which in turn reduces the tax bill proportionally.

Two tiers based on disability rating:

Veterans who are totally and permanently disabled — 100% P&T — are eligible for a valuation exclusion of $300,000. Veterans who are not totally and permanently disabled, but who have a disability rating of 70% or higher, are eligible for an exclusion of $150,000.

How the Math Works

A simple breakdown of how Minnesota’s Market Value Exclusion reduces your property tax bill.

Home ValueExclusionTaxable ValueAnnual Savings (≈1.2% Rate)
$500,000 (100% P&T)$300,000$200,000~$3,600/year
$300,000 (100% P&T)$300,000$0Full exemption
$400,000 (70% SC)$150,000$250,000~$1,800/year
$200,000 (70% SC)$150,000$50,000~$1,800/year

Key Insight: If your home’s market value is equal to or below the exclusion amount, your property tax drops to $0 — full elimination, not just a reduction. For example, a 100% P&T veteran with a $285,000 home pays zero property tax in Minnesota.

TDIU is included: Veterans with individual unemployability status qualify for the $300,000 exclusion on equal footing with 100% P&T veterans.

Primary family caregiver benefit — unique to Minnesota: If a qualifying disabled veteran (70%+) does not own a home but lives with a designated primary family caregiver who owns the home, that caregiver qualifies for the same Market Value Exclusion. The veteran cannot own a homestead property in Minnesota for this provision to apply. This is rare among states and specifically designed for veterans who live with adult children or other family caregivers.

Surviving spouse protections: A surviving spouse of a qualifying veteran may be eligible to continue receiving the exclusion if the veteran had a 100% permanent and total disability rating, the surviving spouse receives Dependency and Indemnity Compensation, or the veteran had a service-connected death while in active service.

Pending 2026 increase — pending legislation: HF194 would increase the valuation exclusion from $150,000 to $200,000 for veterans with a disability rating of at least 70% and from $300,000 to $400,000 for veterans with a total and permanent disability. Minnesota House of Representatives This bill was in committee as of February 2026. If passed, it would significantly increase savings particularly in the Twin Cities metro where home values have risen sharply since the $300,000 figure was set in 2008. Monitor the 2026 Minnesota legislative session for updates.

Application: Applications must be made by December 31 to qualify for the exclusion on the current year’s market value for taxes payable next year. Scott County Apply at your county assessor’s office. Bring VA disability letter and DD-214. Veterans with a 70% rating may need to reapply annually; veterans with 100% P&T or TDIU typically do not need to reapply from the same address once approved — verify with your county.

Vehicle Registration — The Deputy Registrar System

Unlike states with centralized DMV processing, Minnesota vehicle registration is handled through a network of Deputy Registrar offices — approximately 170 locations statewide, operated by both public and private entities under contract with the state. The Minnesota Department of Public Safety Driver and Vehicle Services (DVS) oversees the system.

For veteran plate and registration applications, veterans can:

  • Apply at any Deputy Registrar office (use the DVS office locator at dps.mn.gov)
  • Mail to: Driver and Vehicle Services, 445 Minnesota Street, Suite 164, St. Paul, MN 55101

Form: Application for Special Plates (available at any Deputy Registrar or DVS office)

Documents needed for 100% SC/TDIU registration exemption:

  • VA Summary of Benefits Letter showing 100% SC or TDIU — dated within the past year is preferred
  • DD-214 with honorable discharge conditions
  • Vehicle title or current registration

Annual VA letter requirement: Minnesota requires proof of disability status. Unlike some states where a “permanent” determination never requires re-documentation, most Minnesota Deputy Registrar offices ask for an updated VA letter when renewing. Download a current Summary of Benefits Letter from VA.gov each year before your registration renewal.

Veteran Designation on Minnesota DL/ID — Expanded Documentation

The Veteran designation on the Minnesota driver’s license has been expanded to include retired members of National Guard or Reserves. The required documentation to receive the Veteran designation has been expanded to include a military retiree ID card, Veteran ID card, or Veteran health ID card.

This expansion means Minnesota National Guard and Reserve retirees who may not have a DD-214 can now add the VETERAN designation using their retiree ID or VA health ID card. Previously, a DD-214 was the only accepted document.

The designation can be added at any Secretary of State office or Deputy Registrar, or when renewing your license. No additional fee for the designation itself — standard replacement/renewal fees apply only if you’re making other changes at the same time.

Hunting and Fishing — One of the Best Packages in the Midwest

Minnesota’s outdoor recreation benefits for 100% SC veterans are among the most comprehensive in the country:

What 100% SC veterans receive:

  1. Free deer license — one per year
  2. Free small game license (annual)
  3. Free permanent angling license — trout stamp not required. This permanent license is available only from the DNR License Center in St. Paul. Army
  4. First preference in drawings for special deer hunts, antlerless deer lottery, bear lottery, and turkey lottery
  5. Exemption from components of the firearms safety training requirement
  6. Free sturgeon tags available from the DNR License Center in St. Paul

The permanent fishing license: Most states offer free annual licenses. Minnesota’s permanent fishing license is truly lifetime — never expires, never needs renewal. It is only available in person or by mail through the DNR License Center in St. Paul — not at local sporting goods stores or online.

Bear lottery first preference: Minnesota’s bear hunting licenses are allocated by lottery with extremely high demand. 100% SC veterans receive first preference — a meaningful advantage in a state with some of the best black bear hunting in the contiguous United States.

Recently discharged veterans (within 24 months, served overseas): Service members discharged from federal active duty outside the U.S. within the previous 24 months may hunt small game without a license, fish without a license with no trout stamp required, and receive first preference in lotteries and drawings for special hunts. Veterans Guardian

Veterans leaving active duty during deer season: Veterans discharged within 10 days of the start of, or during, the firearm deer season may purchase a firearm deer license that is immediately valid — no waiting period.

Active duty on leave in Minnesota: Service members on leave may hunt, fish, and use ski trails without a license — carry leave papers while using these benefits.

How to apply for the permanent fishing license: Mail or visit in person: DNR License Center, 500 Lafayette Road, St. Paul, MN 55155. Bring VA letter showing 100% SC and DD-214.

Free State Park Pass — All Disabled Veterans

Active-duty military, Purple Heart recipients, and disabled veterans with any disability status receive a free annual state park pass, regardless of residency.

Minnesota’s state park pass (Minnesota State Park Vehicle Permit) normally costs $35 annually or $25 for a single entry day pass. The free annual pass gives unlimited vehicle entry to all Minnesota state parks for the calendar year.

Any disability rating qualifies — not just 100%. A veteran with 10% SC disability receives the same free annual park pass as a 100% P&T veteran.

Non-residents qualify too — no Minnesota residency required for the park pass.

Veterans Campground on Big Marine Lake: Minnesota operates an exclusive campground on Big Marine Lake in Washington County, east of the Twin Cities. The Veterans Campground on Big Marine Lake, St. Croix, is a family campground that provides facilities and opportunities for recreation, rest, and recovery for all who have served, or who are still serving, in the U.S. Armed Forces, their families, and sponsored friends. The campground has a wide variety of recreational activities including camping (cabins, tents, and RV sites), boating, fishing, tubing, and swimming. Veterans Guardian This veterans-only facility is unique in Minnesota and rarely mentioned in general benefit guides.

Minnesota GI Bill — Education Benefit With Vehicle Connection

The Minnesota GI Bill provides education benefits up to $3,000 per academic year (undergraduate) or $1,500 per year (graduate) for eligible veterans at Minnesota public and private colleges. While this is an education benefit, its existence matters for DMV purposes because veterans can stack education benefits with vehicle benefits when calculating total Minnesota value.

Additionally, Minnesota provides a one-time $750 education grant for veterans who have exhausted all federal GI Bill benefits and are pursuing a bachelor’s degree at a Minnesota institution.

Income Tax Benefits

Active duty pay: Minnesota does not tax military pay received by resident service members serving active duty. Pay is not taxed in the year of the service member’s death.

Military retirement pay subtraction: Minnesota allows a subtraction of up to $5,500 for military retirement pay from state taxable income. While lower than some states (Colorado goes up to $24,000 for retirees 65+), it reduces the tax burden on military retirees.

VA disability and DIC: Always completely exempt from Minnesota income tax — as federally exempt income, these are not included in taxable income calculations.

Nonresident military spouse: Wages earned in Minnesota by eligible nonresident military spouses are not subject to Minnesota income tax — an important benefit for dual-income military families stationed at Camp Ripley, Fort Snelling, or other Minnesota installations.

Rejection Scenarios Specific to Minnesota

Rejection #1 — TDIU Veteran Didn’t Know They Qualify for Two Free Vehicles

A TDIU veteran with a 60% combined rating (rated unemployable) went to the Deputy Registrar and was told they don’t qualify for free registration because they’re “not 100%.” The clerk was unaware of the 2024 law’s TDIU inclusion.

Fix: Bring your VA Summary of Benefits Letter specifically showing “Individual Unemployability” status or the phrase “paid at the 100% rate.” The 2024 law explicitly includes TDIU. If the clerk is uncertain, ask for a supervisor or call DVS at 651-297-3166. The law is Minnesota Statutes 168.013 as amended in 2023.

Rejection #2 — Paid Sales Tax on a Vehicle After July 1, 2024

A 100% SC veteran purchased a used truck in August 2024 and paid $2,800 in Motor Vehicle Sales Tax at the dealership, not knowing about the exemption that took effect July 1, 2024.

Fix: File a Claim for Motor Vehicle Refund with the Minnesota Department of Revenue. Bring your purchase documents, VA letter, and DD-214. Refund claims have a statute of limitations — file as soon as possible. Contact the Minnesota Department of Revenue at 651-296-6181.

Rejection #3 — Property Tax Application Filed After December 31

A veteran qualifies for the $300,000 Market Value Exclusion and applies to the county assessor in February 2026. The assessor confirms the application was filed after December 31, 2025 — too late for the 2025 assessment year. The veteran misses one full year of the exclusion.

Fix: Applications must be made by December 31 to qualify for the exclusion on the current year’s market value for taxes payable next year. Scott County Mark your calendar for December 1 every year. Apply early in the year when possible — county assessors get extremely busy near the December 31 deadline. First-time applicants: apply immediately after establishing residency, don’t wait.

Rejection #4 — Permanent Fishing License Not Available Locally

A 100% SC veteran goes to a sporting goods store or their county deputy registrar to get the permanent fishing license. Neither location can issue it.

Fix: Minnesota’s permanent angling license for 100% SC veterans is available only from the DNR License Center in St. Paul — 500 Lafayette Road, St. Paul, MN 55155. It cannot be purchased online or at any other location. Mail or visit in person with your VA letter and DD-214. This is the most commonly missed detail about Minnesota hunting/fishing benefits.

Rejection #5 — Annual VA Letter Not Updated

A veteran renewing their vehicle registration uses their VA Summary of Benefits Letter from 2022. The Deputy Registrar requires a letter dated more recently — within the past 12 months in most offices.

Fix: Download a fresh Summary of Benefits Letter from VA.gov before every annual registration renewal. The process takes about 2 minutes. Set a reminder each year 30 days before your registration expiration date to download a current letter.

Rejection #6 — Primary Family Caregiver Exclusion Applied Incorrectly

A veteran’s adult daughter applies for the $150,000 Market Value Exclusion for her home where the veteran lives. The county assessor denies it because the veteran also owns a home in Minnesota.

Fix: The primary family caregiver exclusion applies only if the qualifying veteran does NOT own homestead property in Minnesota. If the veteran owns their own home, they apply directly; the caregiver cannot simultaneously claim the exclusion on a separate property. If the veteran has no Minnesota homestead property and lives with the caregiver, the caregiver qualifies.

Application Process — Step by Step

For Free Registration on 2 Vehicles + Sales Tax Exemption + Free DL

Documents to prepare:

  • VA Summary of Benefits Letter showing 100% SC or TDIU — download from VA.gov, dated within the past year
  • DD-214 with honorable conditions discharge
  • Vehicle title(s) in veteran’s name

For vehicle registration: Visit any Deputy Registrar office. Tell them you qualify for the 100% disabled veteran vehicle registration exemption (effective January 1, 2024). Present VA letter and DD-214. Can register up to 2 qualifying vehicles.

For sales tax exemption on new purchase: Inform your dealer before signing any paperwork. Dealer must process through their system selecting the 100% disabled veteran exemption. Bring VA letter and DD-214 to the dealership.

For free driver’s license: Apply at any Deputy Registrar or DVS office. Present VA letter (100% P&T or TDIU) and DD-214.

For Market Value Exclusion (Property Tax)

Apply at: Your county assessor’s office — not the DVS, not a Deputy Registrar

Deadline: December 31 of the year before taxes are calculated

Documents: VA disability letter showing 70%+ SC (for $150K exclusion) or 100% P&T/TDIU (for $300K exclusion), DD-214, deed or proof of homeownership

Reapplication: 100% P&T and TDIU veterans typically do not need to reapply annually from the same address — confirm with your county

For Free State Park Pass

Apply at any Minnesota state park office or through the Minnesota DNR. Show VA disability letter and DD-214. No minimum rating required.

For Permanent Fishing License (100% SC only)

Mail or visit in person only: DNR License Center, 500 Lafayette Road, St. Paul, MN 55155

Bring VA letter showing 100% SC and DD-214. Cannot be purchased online or at any other location.

How Minnesota Compares to Neighboring States

A direct comparison of Minnesota’s veteran benefits vs nearby Midwest states.

BenefitMinnesotaWisconsinIowaNorth DakotaSouth Dakota
Free Registration — Vehicles✅ 2 vehicles (100% SC/TDIU)1 vehicle (100%)1 vehicle (100%)1 vehicle (100%)1 vehicle (100%)
Motor Vehicle Sales Tax✅ Exempt (100% SC/TDIU)
Free Driver’s License✅ 100% P&T/TDIUPartialPartial✅ Yes (100%)Partial
Property Tax Benefit$300K (100%) / $150K (70%) exclusionFull exemption (100%)Full exemption (100%)Full exemption (100%)Full exemption (100%)
Property Tax Starts At70% SC100% SC100% SC100% SCAny disability
Sales Tax Exemption (General)✅ 100% SC/TDIUPartial✅ Yes (100%)
Free State Parks✅ Any disabilityPartialPartial
Permanent Fishing License✅ 100% SC
Bear Lottery Preference✅ 100% SC
2 Free Vehicles✅ Unique in region

Minnesota’s Key Advantages

2 free vehicles — only state in the Midwest offering this
Motor Vehicle Sales Tax exemption — rare and high-value benefit
$150K property tax exclusion at 70% — starts earlier than neighboring states
Permanent fishing license — most states require annual renewal
Bear lottery preference — unique wildlife benefit

Real Annual Savings — Minnesota 100% P&T Veteran (Twin Cities Metro)

Estimated yearly savings for a veteran living in the Minneapolis–Saint Paul metro area (Hennepin County rates).

BenefitAnnual Value
Property Tax MVE ($300K exclusion, $380K home @ ~1.15%)~$3,450/year
Free Registration — 2 Vehicles (~$150 each)~$300/year
Free Driver’s License Renewals (amortized)~$10/year
Free Annual State Park Pass$35/year
Free Hunting Package (deer + small game + permanent fishing)~$120/year
Bear Lottery First PreferenceVariable
Motor Vehicle Sales Tax Exemption ($45K vehicle, amortized)~$293/year
Total Estimated Annual Value~$4,208/year

Key Insight: Minnesota delivers strong value through a mix of property tax reduction and vehicle-related savings. The $300K Market Value Exclusion does most of the heavy lifting, while perks like 2 free vehicles and sales tax exemption add consistent yearly value — especially for homeowners in the Twin Cities.

Minnesota Veteran DMV-Specific Questions FAQs

Accurate, updated answers for DV plates, eligibility, parking rules, forms & 2026 changes

Q1: I’m TDIU — not technically rated 100%. Do I qualify for the two free vehicles and sales tax exemption in Minnesota?

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Yes. Veterans with a 100% total service-connected disability, including TDIU, receive free motor vehicle registration, plate, and title services for up to two vehicles. North Shore Journal The 2024 law explicitly includes TDIU on equal footing with 100% P&T. Bring your VA Summary of Benefits Letter showing Individual Unemployability status and your DD-214 to any Deputy Registrar office. If a clerk says you don’t qualify, ask for a supervisor and reference Minnesota Statutes 168.013.

Q2: How does Minnesota’s Market Value Exclusion work differently from a full property tax exemption?

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A full exemption eliminates 100% of your property tax regardless of home value. Minnesota’s Market Value Exclusion subtracts a fixed dollar amount — $300,000 for 100% P&T or TDIU, $150,000 for 70–99% SC — from your home’s assessed market value before taxes are calculated. If your home’s value is less than or equal to the exclusion, your effective tax is $0. If your home is worth more, you pay taxes only on the value above the exclusion. For example, a 100% P&T veteran with a $250,000 home pays $0 in property taxes. A 100% P&T veteran with a $500,000 home pays taxes only on $200,000 of value.

Q3: Where do I get the permanent fishing license for 100% SC veterans in Minnesota?

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The permanent fishing license for 100% SC veterans is available only from the DNR License Center at 500 Lafayette Road, St. Paul, MN 55155. It cannot be purchased online, at a Deputy Registrar, or at any sporting goods store. Apply by mail or in person with your VA letter showing 100% SC and your DD-214. The license never expires and no annual renewal is required.

Q4: I bought a truck in August 2024 and paid $3,100 in sales tax. Can I get a refund?

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Possibly. The Minnesota Motor Vehicle Sales Tax exemption for 100% SC/TDIU veterans took effect July 1, 2024. If you purchased on or after that date, you may be eligible to file a Claim for Motor Vehicle Refund with the Minnesota Department of Revenue. Contact them at 651-296-6181 with your purchase documents, VA letter, and DD-214. File as soon as possible as refund claim periods are limited.

Q5: Does my adult child who cares for me get a property tax benefit on their home?

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Yes — if you are a qualifying veteran (70%+) and you do not own your own homestead property in Minnesota, and you live with an adult child or other family member who has been designated by the VA as your primary family caregiver, that caregiver may apply for the same Market Value Exclusion on their home. The veteran cannot simultaneously own a separate homestead in Minnesota for this provision to apply. Contact your county assessor’s office for the application — this provision is unique to Minnesota among Midwest states.

Q6: I just got out of the military after serving overseas. What hunting benefits do I have immediately?

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Service members discharged from federal active duty outside the U.S. within the previous 24 months may hunt small game without a license, fish without a license with no trout stamp required, and receive first preference in lotteries and drawings for special hunts. Veterans Guardian This applies for a full 24 months after discharge — no disability rating required, just proof of recent overseas discharge. Carry your DD-214 when hunting or fishing under this benefit.