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🏛️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.

Available to any veteranUp to 50% of retirement income deduction

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Apply directly through the official Montana agency.

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About this benefit

Eligibility

Receiving military retired pay or survivor annuity. Must be a Montana resident who either became a MT resident after June 30, 2023, or was a MT resident before beginning to receive retired pay. Must have Montana-source wage income.

Available for 5 consecutive years after first meeting eligibility. Scheduled to expire tax year 2033. Also covers DoD Survivor Benefit Plan annuities up to 50%.

Verified against official source

Last checked 2026-05-06 against revenue.mt.gov. Always confirm current rates and rules with the Montana state agency before applying.

Other Montana Tax Benefits

Active Duty Military Pay Tax Exemption

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

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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