Military Retirement Income Partial Deduction
Deduction equal to the lesser of 50% of military retirement income or Montana-source wage income for 5 years.
At a glance
- Benefit type
- Tax Benefits — Montana
- Who it's for
- Veterans, Survivors
- VA rating needed
- No rating requirement
- Estimated value
- Up to 50% of retirement income deduction
- Where it applies
- Montana
- Last verified
- May 12, 2026
What is Military Retirement Income Partial Deduction?
Military Retirement Income Partial Deduction is a Montana tax benefits benefit for veterans, survivors. Deduction equal to the lesser of 50% of military retirement income or Montana-source wage income for 5 years. The listed value is Up to 50% of retirement income deduction.
Who qualifies
- Available to any veteran
- Montana residency
Who is eligible
Eligibility
Receiving military retired pay or survivor annuity. Must be a Montana resident who either became a MT resident after June 30, 2023, or established residency before beginning to receive retired pay. Must have Montana-source wage, business net, or farming income.
Deduction equals the lesser of 50% of military retirement income or Montana-source earned income. Available for 5 consecutive tax years; for pre-June-30-2023 residents, the 5-year window begins after tax year 2024. Entire program sunsets in tax year 2033. Leaving Montana after claiming the exemption permanently ends eligibility. Also covers DoD Survivor Benefit Plan annuities (excludes death benefits).
File Form WMRE with Montana Form 2.
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 Military Retirement Income Partial Deduction
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