State Benefit·Montana·🏛️Tax Benefits

Active Duty Military Pay Tax Exemption

Active-duty military pay is exempt from Montana state income tax.

Verified May 12, 2026againstrevenue.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: May 12, 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

How to apply

Apply through the official Montana agency.

Open application

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: May 12, 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.

Frequently 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 Deduction

Deduction equal to the lesser of 50% of military retirement income or Montana-source wage income for 5 years.

Up to 50% of retirement income deduction

Disabled Veteran Property Tax Reduction

Property tax rate reduced by 50-100% on primary residence for 100% service-connected disabled veterans.

Up to 100% property tax reduction

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