Active Duty Military Pay Tax Exemption
Active-duty military pay is exempt from Montana state income tax.
State BenefitMontanaTax Benefits
Verified September 30, 2026 against revenue.mt.gov
At a glance
- Benefit type
- Tax Benefits — Montana
- Who it's for
- Active Duty
- VA rating needed
- No rating requirement
- Where it applies
- Montana
- Last verified
- September 30, 2026
What is Active Duty Military Pay Tax Exemption?
Active Duty Military Pay Tax Exemption is a Montana tax benefits benefit for active duty. Active-duty military pay is exempt from Montana state income tax.
Who qualifies
- Active Duty
- Through veteran sponsor (any rating)
- Montana residency
Who is eligible
Eligibility
Active-duty service members with Montana residency. No disability rating required.
Applies to regular armed forces active duty pay only — does NOT cover National Guard AGR, reserve drill pay, or military retirement pay. Resident filers must still file a Montana return with military orders documentation.
Verified information & sources
- Last verified
- September 30, 2026
- Official source
- revenue.mt.gov
Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.
How VetUnlock verifies benefitsFrequently asked questions about Active Duty Military Pay Tax Exemption
Who qualifies for Active Duty Military Pay Tax Exemption?
Active Duty Military Pay Tax Exemption is for Active Duty; Through veteran sponsor (any rating); montana residency. See the eligibility details on this page and confirm with the official source before applying.
How do I apply for Active Duty Military Pay Tax Exemption?
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Active Duty Military Pay Tax Exemption?
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.
Other Montana Tax Benefits
- Military Retirement Income Partial DeductionUp to 50% of retirement income deductionDeduction equal to the lesser of 50% of military retirement income or Montana-source wage income for 5 years.
- Disabled Veteran Property Tax ReductionUp to 100% property tax reductionProperty tax rate reduced by 50-100% on primary residence for 100% service-connected disabled veterans.