Montana Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax
The state benefits Montana gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.
Montana's main veteran property tax benefit is the income-based Montana Disabled Veteran (MDV) program: veterans rated 100% service-connected disabled, and their unmarried surviving spouses, get a 50%, 70%, 80% or 100% cut to the tax rate on their home, depending on income. Military retired pay is mostly taxable. Montana has only a partial subtraction for working military retirees: 50% of retired pay, capped at the retiree's Montana earned income, for five consecutive years. Survivor Benefit Plan recipients can subtract up to 50% of their benefits. Other state benefits include reduced vehicle registration fees and 'DV' plates for 100%-rated veterans (or Purple Heart recipients rated 50% or more), a university tuition waiver for honorably discharged wartime veterans, half-price combat-disabled deer and antelope licenses, a 5- or 10-point public hiring preference, and three state veterans homes. (sources)
Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.
Property tax exemptions for veterans in Montana
| Benefit | Who qualifies | Amount | How to apply | Source |
|---|---|---|---|---|
| Montana Disabled Veteran (MDV) Property Tax Assistance Program: reduces the property tax rate on the primary residence. On agricultural or forest land it covers the home plus a one-acre homesite. DOR applies the reduction to the home's market value (unlike PTAP, no $418,000 value cap is stated). | A veteran with a VA letter showing a current 100% service-connected disability rating, or the veteran's unmarried surviving spouse. The deceased veteran must have died on active duty, died of a service-connected disability, or been rated 100% disabled at death. The applicant must own the home (or be buying it under contract) and live in it as a primary residence at least 7 months a year. For tax year 2026, the applicant's 2024 federal AGI (excluding capital and income losses, and including a spouse's income) must be below: Single $62,598; Married or Head of Household $72,229; Unmarried Surviving Spouse $54,573. | Cut to the normal tax rate, based on 2024 FAGI. Single: $0-$48,152 = 100%; $48,153-$52,968 = 80%; $52,969-$57,781 = 70%; $57,782-$62,598 = 50%. Married/Head of Household: $0-$57,781 = 100%; $57,782-$62,598 = 80%; $62,599-$67,412 = 70%; $67,413-$72,229 = 50%. Unmarried surviving spouse: $0-$40,127 = 100%; $40,128-$44,942 = 80%; $44,943-$49,758 = 70%; $49,759-$54,573 = 50%. The DOR page applies these brackets to Tax Year 2026, but its table caption still says 'Tax Year 2025'. Brackets are indexed to inflation each year. | Apply by April 15 with the Montana Disabled Veteran Property Tax Relief Application (Form MDV), electronically or on paper at a local Department of Revenue field office. Late applications are considered for the following year. The application stays active as long as you own and live in the home; you must meet the income and ownership/occupancy requirements every year, and DOR sends a status letter each year (15-6-311, MCA). | Montana Department of Revenue: Montana Disabled Veteran Assistance Program (MDV) |
Is military retired pay taxed in Montana?
| Treatment | Amount or limit | Source |
|---|---|---|
| Partially taxable. Montana residents who are working military retirees can subtract part of their military retirement income (Form 2, Schedule I line 13, with Form WMRE attached). Resident beneficiaries of the DoD Survivor Benefit Plan can subtract up to 50% of their survivor benefits. To qualify, the person must have become a Montana resident after June 30, 2023, or have been a Montana resident before receiving military retirement or survivor benefits and stayed a resident since. The subtraction is not available to retirees who were nonresidents when their military retirement began and who moved to Montana before July 1, 2023. Senate Bill 93 (2025) removed the subtraction's former December 31, 2033 expiration date. | For retirees, the lesser of (a) 50% of military retirement income or (b) Montana-source wages, salary and tips plus net Montana business and farm income. For SBP beneficiaries, up to 50% of survivor benefits. It can be claimed for only five consecutive years after the person first qualifies. Retirees and beneficiaries who were residents before July 1, 2023 get five years after tax year 2024, so through tax year 2028. Source: 2025 Montana Form 2 Instructions. | revenue.mt.gov |
For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.
Other Montana veteran benefits
Vehicles and license plates
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Reduced light-vehicle registration fees for disabled veterans | Veterans currently rated 100% service-connected disabled or paid at the 100% rate, and Purple Heart recipients rated 50% or more disabled. An unmarried surviving spouse also qualifies if the deceased service member was a POW, was rated (or paid at) 100%, was a Purple Heart recipient rated 50% or more, was killed on active duty, or died of a service-connected injury or disability. Show the County Treasurer's office a VA letter, plus a DD-214 for the Purple Heart route. A veteran designation on a driver license does not count as proof. | Reduced registration fees. MVD does not publish a dollar figure. | mvdmt.gov |
| 'DV' disabled veteran license plates, which include disabled parking privileges | Veterans currently rated 100% service-connected disabled (or paid at the 100% rate), or Purple Heart recipients rated 50% or more disabled from a service-connected injury. Unlike other military plates, DV plates cannot be transferred to a surviving spouse. | Special plate with disabled parking privileges. | mvdmt.gov |
| Branch-specific military plates (Active Duty, Reserve and Veteran versions for each branch) and Gold Star Family plates | Veteran plates: people who served as active-duty or reserve members of that branch, or their unmarried surviving spouse, with a DD-214 or other proof of an other-than-dishonorable discharge. Gold Star plates: family members eligible for the Gold Star Lapel Button (Form MV57). | No fee benefit. Normal registration fees and special-plate fees apply. | mvdmt.gov |
Hunting, fishing and other licenses
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Combat Disabled half-price deer and antelope licenses (Montana FWP) | Veterans with certain combat-connected injuries. Apply with the 2026 Combat Disabled Application. | Half-price deer and antelope licenses. Up to 50 licenses are issued each year. | fwp.mt.gov |
| Purple Heart Conservation License: fish and hunt upland game birds | Residents and nonresidents of any age who were awarded the Purple Heart. You need proof of the Purple Heart and a DD-214. Residents get it at FWP offices; nonresidents only at FWP Headquarters in Helena. | A Conservation License that allows fishing and upland game bird hunting. MVAD does not publish the fee. | veterans.mt.gov |
| Legion of Valor Conservation License to fish | Residents and nonresidents of any age with a Legion of Valor membership card. Available only at FWP offices. | A Conservation License that allows fishing. | veterans.mt.gov |
Education
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Montana University System tuition and fee waiver for wartime veterans and certain family members (20-25-421(2)(c), MCA) | Montana residents who served in the U.S. armed forces in any of its wars and were honorably discharged. Also children of Montana resident service members killed in action or who died of service-incurred injury or disease, and spouses or children of Montana residents declared POW or MIA. The Board of Regents decides whether to grant the waiver ('may waive'). | Waiver of tuition and fees, at the Regents' discretion. | mca.legmt.gov |
| Montana Veteran Affairs Division Purple Heart Scholarship (10-2-118, MCA) | Montana residents who received the Purple Heart (shown on a DD-214). The student must have completed a full academic year at an accredited state university or vocational-technical school with a GPA of at least 2.0 and be re-enrolling. | $1,000 scholarship. Several are awarded each year. | veterans.mt.gov |
Employment
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Veterans' employment preference for public jobs (39-29-102, MCA) | Veterans, disabled veterans and eligible relatives applying for an initial hire with a Montana public employer. Applicants must be U.S. citizens and meet the job's minimum qualifications. | In scored hiring, 5 percentage points for veterans and 10 for disabled veterans or eligible relatives (not combined). In unscored hiring, preference over a non-preferred applicant with substantially equal qualifications. | mca.legmt.gov |
State veterans homes
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| State veterans homes (skilled nursing) in Butte (Southwest Montana Veterans Home), Columbia Falls (Montana Veterans Home) and Glendive (Eastern Montana Veterans Home), run by DPHHS | Veterans who need skilled nursing care. Admission details are on each home's DPHHS page. | Skilled nursing care. MVAD does not publish rates. | veterans.mt.gov |
Other benefits
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Burial in a state veterans cemetery (Fort Harrison, Miles City and Missoula) | Eligible veterans, plus spouses and eligible dependents buried with the veteran. | Low-cost burial, with free options for cremated remains. | veterans.mt.gov |
Common questions
Does Montana have a property tax exemption for disabled veterans?
Yes: Montana Disabled Veteran (MDV) Property Tax Assistance Program: reduces the property tax rate on the primary residence. On agricultural or forest land it covers the home plus a one-acre homesite. DOR applies the reduction to the home's market value (unlike PTAP, no $418,000 value cap is stated).. Who qualifies: A veteran with a VA letter showing a current 100% service-connected disability rating, or the veteran's unmarried surviving spouse. The deceased veteran must have died on active duty, died of a service-connected disability, or been rated 100% disabled at death. The applicant must own the home (or be buying it under contract) and live in it as a primary residence at least 7 months a year. For tax year 2026, the applicant's 2024 federal AGI (excluding capital and income losses, and including a spouse's income) must be below: Single $62,598; Married or Head of Household $72,229; Unmarried Surviving Spouse $54,573.. Amount: Cut to the normal tax rate, based on 2024 FAGI. Single: $0-$48,152 = 100%; $48,153-$52,968 = 80%; $52,969-$57,781 = 70%; $57,782-$62,598 = 50%. Married/Head of Household: $0-$57,781 = 100%; $57,782-$62,598 = 80%; $62,599-$67,412 = 70%; $67,413-$72,229 = 50%. Unmarried surviving spouse: $0-$40,127 = 100%; $40,128-$44,942 = 80%; $44,943-$49,758 = 70%; $49,759-$54,573 = 50%. The DOR page applies these brackets to Tax Year 2026, but its table caption still says 'Tax Year 2025'. Brackets are indexed to inflation each year. (Montana Department of Revenue: Montana Disabled Veteran Assistance Program (MDV)).
How do I apply for the Montana veteran property tax exemption?
Apply by April 15 with the Montana Disabled Veteran Property Tax Relief Application (Form MDV), electronically or on paper at a local Department of Revenue field office. Late applications are considered for the following year. The application stays active as long as you own and live in the home; you must meet the income and ownership/occupancy requirements every year, and DOR sends a status letter each year (15-6-311, MCA). (Montana Department of Revenue: Montana Disabled Veteran Assistance Program (MDV)).
Does Montana tax military retirement pay?
Partially taxable. Montana residents who are working military retirees can subtract part of their military retirement income (Form 2, Schedule I line 13, with Form WMRE attached). Resident beneficiaries of the DoD Survivor Benefit Plan can subtract up to 50% of their survivor benefits. To qualify, the person must have become a Montana resident after June 30, 2023, or have been a Montana resident before receiving military retirement or survivor benefits and stayed a resident since. The subtraction is not available to retirees who were nonresidents when their military retirement began and who moved to Montana before July 1, 2023. Senate Bill 93 (2025) removed the subtraction's former December 31, 2033 expiration date. Amount or limit: For retirees, the lesser of (a) 50% of military retirement income or (b) Montana-source wages, salary and tips plus net Montana business and farm income. For SBP beneficiaries, up to 50% of survivor benefits. It can be claimed for only five consecutive years after the person first qualifies. Retirees and beneficiaries who were residents before July 1, 2023 get five years after tax year 2024, so through tax year 2028. Source: 2025 Montana Form 2 Instructions. (revenue.mt.gov).
What other benefits do veterans get in Montana?
Reduced light-vehicle registration fees for disabled veterans (mvdmt.gov); 'DV' disabled veteran license plates, which include disabled parking privileges (mvdmt.gov); Branch-specific military plates (Active Duty, Reserve and Veteran versions for each branch) and Gold Star Family plates (mvdmt.gov); Montana University System tuition and fee waiver for wartime veterans and certain family members (20-25-421(2)(c), MCA) (mca.legmt.gov); Montana Veteran Affairs Division Purple Heart Scholarship (10-2-118, MCA) (veterans.mt.gov); Combat Disabled half-price deer and antelope licenses (Montana FWP) (fwp.mt.gov); Purple Heart Conservation License: fish and hunt upland game birds (veterans.mt.gov); Legion of Valor Conservation License to fish (veterans.mt.gov); Veterans' employment preference for public jobs (39-29-102, MCA) (mca.legmt.gov); State veterans homes (skilled nursing) in Butte (Southwest Montana Veterans Home), Columbia Falls (Montana Veterans Home) and Glendive (Eastern Montana Veterans Home), run by DPHHS (veterans.mt.gov); Burial in a state veterans cemetery (Fort Harrison, Miles City and Missoula) (veterans.mt.gov). Who qualifies and the amounts are in the tables above.
Sources
- Montana Department of Revenue: Montana Disabled Veteran Assistance Program (MDV)
- revenue.mt.gov
- mvdmt.gov
- mca.legmt.gov
- veterans.mt.gov
- fwp.mt.gov
- veterans.mt.gov
- mca.legmt.gov
Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.
Related
Montana senior property tax relief → Montana state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →