MT · Tax Year 2026
How Montana taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
$5,500 general subtraction per eligible person age 65+; qualifying working military retirees may deduct 50% of military retirement for up to five years
$5,500 subtraction at 65+ not restricted to retirement income
Additional Notes
Military subtraction requires employment/residency eligibility
Does Montana tax Social Security benefits?
It depends. Montana offers partial exemption for Social Security — eligibility is typically income-based or age-based. See the details above.
Does Montana tax pension income?
Partially. Montana provides exemptions for certain types of pension income — often public, government, or military pensions — while private pensions may be partially or fully taxable. See eligibility details above.
Does Montana tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in Montana. However, exclusions or credits may apply depending on your age and income — review the details above.
Is Montana a tax-friendly state for retirees?
It depends on your income mix. Montana offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
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Data Source
Official Montana state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
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Data reflects tax year 2026 rules sourced from official Montana state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.