Updated January 2026
Montana Veteran Benefits 2026
Montana offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in MT for 2026.
Montana Highlights
- Partial military retirement tax exemption
- Property tax reduction for disabled veterans
- Free hunting and fishing licenses for disabled veterans
- Montana Veterans Affairs Division assistance
Income Tax Treatment
Montana has a state income tax.
Military Retirement Pay: Montana taxes military retirement pay but, since 2024, lets retirees who newly move to the state or begin receiving retired pay as residents exempt the lesser of 50% of that pay or their Montana wage income for five consecutive years.
Active Duty Pay: Active duty pay earned outside Montana may be exempt.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Montana does not tax VA disability payments.
Property Tax Exemption for Disabled Veterans in Montana
Type: Graduated by disability rating
The Montana Disabled Veteran (MDV) Assistance Program reduces the residential property tax RATE (not assessed value) for veterans rated 100% service-connected disabled. The reduction is income-tiered: 100%, 80%, 70%, or 50% off the normal tax rate, with the bracket depending on filing status (single, married/head of household, or unmarried surviving spouse). It is an income-tiered relief on the home and up to one acre of appurtenant land.
| VA disability rating / category | What you get |
|---|---|
| 100% service-connected disabled (single filer) | Tax-rate reduction: 100% if income $0-$48,152; 80% if $48,153-$52,968; 70% if $52,969-$57,781; 50% if $57,782-$62,598Tax year 2026 income brackets (inflation-adjusted annually). Above the top bracket = no benefit. |
| 100% service-connected disabled (married / head of household) | Tax-rate reduction: 100% if income $0-$57,781; 80% if $57,782-$62,598; 70% if $62,599-$67,412; 50% if $67,413-$72,229Tax year 2026 income brackets (inflation-adjusted annually). |
| Unmarried surviving spouse of qualifying veteran | Tax-rate reduction: 100% if income $0-$40,127; 80% if $40,128-$44,942; 70% if $44,943-$49,758; 50% if $49,759-$54,573Tax year 2026 income brackets. Veteran must have died on active duty, died from a service-related disability, or been rated 100% disabled at death. |
- Income limit: Yes — income-tiered. For TY2026 the cutoff (above which no benefit) is $62,598 (single), $72,229 (married/HoH), $54,573 (surviving spouse). Brackets are adjusted annually for inflation.
- Age requirement: None for the disabled-veteran track (there is a separate age-based Property Tax Assistance Program / PTAP, not this program).
- Surviving spouse: Yes — unmarried surviving spouse qualifies with separate (lower) income brackets if the veteran died on active duty, died of a service-connected disability, or was rated 100% disabled at death.
- Counts being paid at 100% via unemployability (TDIU)? Varies / not explicitly addressed — confirm with the assessor or state VA
Source: Mont. Code Ann. (MCA) 15-6-302, 15-6-311, 15-6-312; ARM 42.19.401, 42.19.402 and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the Montana Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.
Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.
VA Healthcare in Montana
Montana has approximately 2 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.