Montana Veteran Tax Exemptions
One of the benefits Montana offers its military and veteran population is state income tax exemptions. Service members and their spouses are exempt from paying Montana state income taxes on active duty, Guard, and Reserve pay.
Montana has a variety of state veteran benefits available to residents and nonresidents. Some are direct financial grants, while others are indirect in nature. Some examples of these include property tax exemptions, tuition waivers for service members and their families, employment preference in private sector hiring, and reduced vehicle registration fees.
The state of Montana does not tax military retired pay. The only state income tax in Montana is on taxable interest and dividends. In addition, honorably discharged disabled veterans and unmarried surviving spouses may be exempt from paying property taxes on their homes. To qualify, you must submit a letter from the VA that indicates your disability rating and a copy of your DD214 or service member’s statement of benefits to the county treasurer’s motor vehicle office annually.
What Tax Benefits Do Veterans Get in Montana?
In addition to military retirement income, Montana veterans can qualify for several other benefits. For example, honorably discharged veterans and their spouses can be admitted to state veteran homes on a space-available basis if they require residential self-care or intermediate/skilled care. The state also provides a property tax exemption for some veterans, which reduces the amount of ad valorem taxes that are owed on a homestead.
Other state veteran benefits include employment preference for public jobs. This means that when a public employer uses a scored selection process, they must give preference to a qualified disabled Veteran or a spouse of a disabled Veteran, over an applicant who doesn’t meet the qualifications for the job.
Montana offers discounted hunting and fishing licenses to residents who are Veterans or service members who have a disability rating of at least 100%. You can purchase these licenses by calling the Fish, Wildlife and Parks Department or visiting a local Montana Fish, Wildlife and Parks office.
Montana also offers tuition waivers for National Guard service members, veterans and war orphans who attend the University of Montana campuses. The waivers can cover up to 12 semesters. In addition, the State of Montana also offers grants for military family assistance and reduced recreational fees for those who meet income and other eligibility requirements.
Montana Veteran Property Tax Relief Application
Montana provides property tax exemptions for veterans with 100% disability connected to military service or the surviving unmarried spouses of such a veteran. This is in addition to other state and federal tax credits and benefits.
To apply for Montana Veteran Property Tax Relief Application, applicants must provide a copy of their federal adjusted gross income (AGI) and marital status. AGI excludes capital gains and losses. The application also asks for all sources of income, including social security, veterans benefits, and nontaxable income.
If a home is located on agricultural or forest land, only one acre is included in the home site. A full chart of income tax brackets is available on the Montana Department of Revenue website.
Governor Greg Gianforte has extended the April 15 deadline to June 1 for applications for Montana’s property tax relief programs PTAP and MDV. This extension includes those applying for the first time as well as those who missed the original deadline because of a substantial hardship.
