Loading...
2026 rules · verified against Montana's primary source
Montana partially exempts military retirement pay; conditions apply.
Only 'working military retirees' who became/were MT residents under specific conditions qualify: exempt the lesser of 50% of DFAS military retirement income or their Montana-source wage income, for up to 5 consecutive years (new for tax year 2024).
Treatment
partially exempt
Top marginal rate
5.90%
Source: https://revenue.mt.gov/taxes/individual-income-tax/working-military-retirement-exemption · verified July 2026
Estimated Montana state income tax on your military retirement, using the top marginal rate on the taxable portion (an upper bound; your effective rate is usually lower).
More Montana: all Montana veteran benefits · military retirement tax in every state · what your pension is worth