Montana may be the fourth largest state by area with a relatively small population, but its veteran community — more than 88,000 strong — is served by a robust set of state benefits. Military retirement pay is fully exempt from Montana income tax, 100% P&T veterans receive significant property tax relief, and the state's three veterans homes span Montana's vast geography. Here is everything Montana veterans need to know for 2026.
Montana is one of the most geographically expansive states in the nation, covering 147,040 square miles — larger than all of Germany. For its 88,000-plus veterans, this creates both a challenge and an identity: Montana veterans are fiercely independent and deeply connected to the land, but accessing benefits across 56 counties and vast distances has historically been difficult. Montana has responded by building a network of county-level Veterans Service Officers (VSOs), three state veterans homes strategically placed across the state, and a VA benefits system supplemented by robust telemedicine and community-based outreach.
Montana's major military-related installations include Malmstrom Air Force Base in Great Falls, home to the 341st Missile Wing and a significant Air Force presence in the state. Malmstrom is one of three ICBM bases in the country, and its personnel — past and present — form a substantial part of Montana's veteran population in Cascade County and the surrounding area.
Montana's veteran benefits package is anchored by three core financial advantages: a significant property tax assistance program for disabled veterans, full exemption of military retirement pay from state income tax, and access to the Montana University System (MUS) tuition benefits for eligible veteran dependents. When combined with federal VA benefits, Montana veterans can stack these benefits to achieve substantial financial protection.
Significant property tax assistance for disabled veterans under MCA § 15-6-311 — with maximum benefit for 100% P&T rated veterans at qualifying income levels.
Montana fully exempts military retirement pay from state income tax following 2024 legislation. Montana's top rate is 6.75%.
Dependents of qualifying veterans (KIA, 100% P&T) may receive free tuition at any Montana University System campus.
Montana operates veterans homes in Columbia Falls, Glendive, and Warm Springs — spanning the state's vast geographic reach.
Montana's property tax assistance program for disabled veterans is governed by Montana Code Annotated § 15-6-311. Unlike some states that offer a flat percentage exemption, Montana's program is income-based, meaning the level of assistance a veteran receives depends on both their disability rating and their household income. This structure provides the greatest relief to the most financially vulnerable veterans while still offering meaningful benefits at higher income levels.
Under MCA § 15-6-311, a veteran who has a service-connected disability and is a Montana resident may apply for a reduction in property taxes on their principal residence. The program operates on a sliding scale with income thresholds that are adjusted periodically. Key features:
For the most current income thresholds, application forms, and benefit tables, visit the Montana Department of Revenue at dor.mt.gov or contact your county assessor's office. Because income thresholds are adjusted annually, always confirm current limits rather than relying on prior-year figures.
Veterans with a 100% Permanent and Total (P&T) service-connected disability qualify for the highest level of property tax assistance under the program. At qualifying income levels, this can represent a very substantial reduction — potentially eliminating most or all residential property tax liability on the primary residence. Even at higher income levels, 100% P&T veterans receive meaningful property tax relief.
Montana's median home value is lower than the national average, so even a partial exemption delivers concrete annual savings. In Missoula, Billings, or Bozeman — where home values have risen significantly in recent years — a significant reduction in assessed value for property tax purposes can save a veteran thousands of dollars per year.
Veterans who are at 100% rated but not designated P&T should understand that many Montana counties distinguish between 100% schedular and 100% P&T in determining eligibility for the maximum benefit level. If you are at 100% without P&T, filing a claim for P&T designation with the VA is worth pursuing — it may unlock additional property tax relief in Montana and other valuable federal benefits.
The property tax assistance extends to the surviving spouse of a qualifying veteran. After the veteran's death, a surviving spouse who has not remarried and continues to reside in the same primary residence may apply to continue receiving the property tax benefit. The surviving spouse must meet the same income qualifications as required for the veteran.
If you are not yet at 100% P&T but believe your conditions warrant it, use the claim.vet disability calculator to evaluate your potential rating and start a claim to pursue the rating you've earned. A higher federal rating means more Montana property tax relief.
Montana fully exempts military retirement pay from state income tax. Following legislative action that took effect in 2024, Montana joined the growing list of states that provide a complete exemption for all military retired pay — with no dollar cap, no age restriction, and no income limitation. This is a significant financial benefit for military retirees who choose Montana as their home state.
Montana's individual income tax rate reaches 6.75% at higher income levels (Montana uses a graduated rate structure). For a military retiree receiving $40,000 per year in retirement pay, the full exemption saves approximately $2,700 per year. For higher-grade retirees receiving $60,000–$80,000 annually, annual savings can reach $4,000–$5,400 or more. Over a 20-year retirement, this is a potential total savings exceeding $80,000.
The following types of military retirement income are fully exempt from Montana state income tax:
VA disability compensation is already federally tax-exempt. The Montana military retirement exemption is a separate, state-level benefit that applies to the military retirement income stream (the 1099-R). Veterans receiving both VA compensation and military retirement (through CRDP or CRSC programs) should work with a tax professional familiar with military retirement to correctly report their income and ensure all eligible amounts are excluded from Montana taxable income. Source: Montana Department of Revenue
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Montana state property tax benefits scale with your VA disability rating. Professional medical documentation from REE Medical can help increase your federal rating — potentially unlocking maximum property tax relief.
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Montana offers education benefits for veterans and their dependents through several programs, with the Montana University System (MUS) playing a central role.
Montana Code Annotated § 20-26-1101 provides a tuition waiver at any Montana University System campus for the dependent children of Montana residents who meet specific criteria related to military service:
Eligible dependents may attend any of the MUS campuses — including the University of Montana (Missoula), Montana State University (Bozeman), Montana Tech (Butte), the University of Montana Western (Dillon), and others — with in-state tuition waived. The student must maintain satisfactory academic progress and meet the institution's admission requirements.
This benefit is specifically for dependents of veterans whose disabilities or deaths were combat-zone related. Veterans whose 100% P&T disability is not specifically from a combat zone wound should still check with the MUS financial aid offices, as individual institutions may have additional scholarship funds available for veteran dependents.
Members of the Montana Army National Guard and Montana Air National Guard in good standing may access education assistance through the Montana Military Tuition Assistance program. This program supplements federal Tuition Assistance (TA) and is administered through the Montana Military Division. Guard members should contact their unit's education NCO or the Montana Military Division at (406) 324-3000 for current funding levels and application requirements.
Guard members may also access the Montgomery GI Bill — Selected Reserve (MGIB-SR, Chapter 1606) and other federal education programs. The combination of state Guard education assistance and federal MGIB-SR benefits can substantially offset tuition costs at Montana institutions.
All Montana public universities and many private institutions participate in VA education benefit programs, including the Post-9/11 GI Bill (Chapter 33) and Montgomery GI Bill (Chapter 30). Under federal law (VACAA), public Montana institutions must offer in-state tuition rates to veterans using GI Bill benefits regardless of their residency status. This means recently separated veterans who move to Montana can immediately receive in-state tuition when using GI Bill benefits without waiting to establish a year of residency.
Montana State University in Bozeman and the University of Montana in Missoula both have active veterans services offices that help veterans navigate GI Bill certification, Yellow Ribbon program access, and academic support services specific to veterans.
Montana veterans with service-connected disabilities that create barriers to employment may qualify for the VA's Vocational Rehabilitation & Employment (VR&E) program (Chapter 31). VR&E covers tuition, books, supplies, and in some cases a monthly housing allowance — often superior to the Post-9/11 GI Bill for veterans with significant disabilities. Montana's VA facilities and vet centers can connect veterans with VR&E counselors.
Montana law provides meaningful advantages for veterans entering the state and local government workforce, along with career transition resources through the Montana Department of Labor and Industry.
Under Montana Code Annotated § 39-29-101, veterans who served on active duty and received an honorable or general discharge are entitled to veterans preference in state and local government employment:
To claim preference, veterans must submit a Veteran Preference Form along with their DD-214 and (for disabled veterans) their VA rating letter with each state job application. Apply through the Montana State Human Resources Division at hr.mt.gov.
Montana provides fee waivers or reductions for certain professional license applications by veterans. Service members transitioning from military to civilian careers in licensed fields — such as emergency medical services, healthcare, law enforcement, and other regulated occupations — may qualify. Additionally, Montana's occupational licensing reform efforts have created expedited licensing pathways for veterans with equivalent military training and experience. Contact the Montana Department of Labor and Industry (dli.mt.gov) for a current list of qualifying professions and waiver procedures.
Montana's American Job Centers (AJCs), funded through the Department of Labor, provide dedicated employment services for veterans:
Find the nearest Montana AJC at wsd.dli.mt.gov or call the Montana Department of Labor and Industry at (406) 444-2840.
Veterans transitioning from Malmstrom AFB or returning to Montana after military service can access the Transition Assistance Program (TAP) through the base, as well as the Montana National Guard's Transition Program for Guard members separating from federal active duty. These programs provide resume writing, interview preparation, and employer connection resources.
Montana's healthcare resources for veterans span three state veterans homes, a network of VA Community Based Outpatient Clinics (CBOCs), and the Veterans' Affairs Division's VSO network across all 56 counties.
Montana operates three state veterans homes, geographically distributed to serve the state's vast and largely rural population:
To qualify for admission to a Montana State Veterans Home, a veteran must have served on active duty in the U.S. Armed Forces and received an honorable or general discharge. Medical admission criteria specific to the level of care provided must also be met. The VA provides per diem reimbursements for eligible veterans in state-licensed veterans homes, substantially reducing out-of-pocket costs for qualifying residents.
Montana's veterans homes have significantly lower daily rates than comparable private care facilities, and VA per diem payments cover a substantial portion of costs for veterans who qualify. Contact the Montana Department of Military Affairs, Veterans' Affairs Division at (406) 324-3740 for admission information.
The Montana State Veterans Cemetery is located in Missoula County. Eligible veterans, their spouses, and certain dependent children are entitled to burial in the cemetery at no cost for the burial plot and opening/closing fee. Veterans who meet federal eligibility requirements are also eligible for national veterans cemeteries — Montana does not have a national cemetery, so many Montana veterans are interred in Montana state facilities or travel to other states for national cemetery burial. Military funeral honors are available through Montana's military forces and veterans organizations.
Montana is served by the VA Montana Health Care System, headquartered in Fort Harrison near Helena, along with Community Based Outpatient Clinics (CBOCs) in Great Falls, Billings, Missoula, Bozeman, Havre, Lewistown, Miles City, and other locations. Given Montana's geography, the VA has expanded telehealth services significantly, allowing Montana veterans in rural areas to access primary care, mental health, and specialty care remotely. The MISSION Act's community care provisions also allow many Montana veterans to receive care at closer non-VA facilities when drive times to VA facilities exceed 30 minutes for primary care or 60 minutes for specialty care.
The Montana Department of Military Affairs maintains the Veterans' Affairs Division, which coordinates accredited VSO services across all 56 Montana counties. County-level veterans service officers can help with VA claims, state benefits applications, and connecting veterans with other services. Contact the Veterans' Affairs Division at (406) 324-3740 or visit dma.mt.gov/veterans.
Montana offers a range of additional benefits and perks that provide meaningful value for the veteran community.
Montana provides license benefits for disabled veterans through Montana Fish, Wildlife & Parks (FWP):
Apply at any Montana Fish, Wildlife & Parks office or regional service center. Bring your VA disability award letter and DD-214. For current license fees and availability: (406) 444-2535 | fwp.mt.gov.
Montana offers a range of specialty veterans license plates through the Motor Vehicle Division:
Contact the Montana Motor Vehicle Division at doj.mt.gov/driving/vehicle for current fees, application procedures, and availability by specialty plate type.
Montana veterans, particularly those with service-connected disabilities, may qualify for reduced-fee or complimentary access at Montana State Parks facilities. Veterans with a Disabled American Veterans (DAV) pass or a VA-issued disability parking permit receive standard accessible parking accommodations at all state park facilities. Contact Montana State Parks at (406) 444-3750 for current discount policies and any veteran-specific access programs.
Montana provides tax incentives to employers who hire veterans. While this benefit is employer-facing rather than directly to the veteran, it effectively increases veterans' employability in the Montana private sector. The Montana Department of Revenue can provide details to employers considering veteran hires. Veterans can mention this credit to prospective employers as a financial incentive for hiring them.
Buildings owned and used by Montana veterans organizations (American Legion, VFW, DAV, etc.) for purposes directly related to the organization's programs are exempt from Montana property tax. This benefit supports the organizational infrastructure that assists individual veterans, and is worth knowing about if you are involved with a veterans organization's facilities.
Montana veterans who understand how to layer federal and state benefits can achieve significant annual financial protection. Here is a strategic action plan:
Yes. Montana fully exempts military retirement pay from state income tax following legislation that took effect in 2024. Montana's individual income tax rate reaches 6.75%, making this exemption worth thousands of dollars annually. The exemption applies to all branches of service and both active duty and reserve component retirement pay.
Applications for Montana's Disabled Veterans Property Tax Assistance (MCA § 15-6-311) must be filed with the Montana Department of Revenue by April 15 each year. The program requires annual renewal — prior approval does not carry forward automatically. Gather your VA award letter, DD-214, and income documentation and file by early April at the latest.
Income thresholds for Montana's veteran property tax assistance are adjusted annually by the Department of Revenue. The program is income-based, meaning higher-income veterans receive a smaller benefit. Contact the Montana DOR at (406) 444-6900 or visit dor.mt.gov for the current year's income tiers and benefit amounts. Your county VSO can also provide guidance.
No. The Montana University System tuition waiver (MCA § 20-26-1101) is specifically for dependents of veterans who were killed in action, died from wounds received in a combat zone, or are 100% service-connected disabled due to a wound received in a combat zone. Dependents of veterans with non-combat-zone disabilities do not automatically qualify for this waiver, though they may have access to other scholarships through individual MUS campuses.
Montana has three state veterans homes: Columbia Falls (serving western Montana, (406) 892-3256), Glendive (serving eastern Montana, (406) 377-3464), and Warm Springs (specialized mental health and behavioral health services). All three require honorable or general discharge and medical admission criteria.
Veterans with a 100% service-connected disability may qualify for a discounted or free combination hunting and fishing license from Montana Fish, Wildlife & Parks. Visit any FWP office with your VA disability award letter and DD-214. Phone: (406) 444-2535.
Yes. Under MCA § 39-29-101, non-disabled veterans receive 5 preference points and disabled veterans (10%+) receive 10 preference points on competitive state civil service exams. Montana also provides layoff protection — veterans are among the last separated in reductions in force. File preference documentation at hr.mt.gov when applying for state positions.
Contact the Montana Veterans' Affairs Division at (406) 324-3740 or visit dma.mt.gov/veterans. Montana maintains accredited VSOs across all 56 counties — even in the most rural areas of the state. VSOs provide free assistance with VA claims, appeals, and state benefits applications.
🎖️ Maximize Your Federal Rating First
State benefits often scale with your VA disability rating. Professional medical documentation from REE Medical can help increase your federal rating — unlocking higher state benefits too.
Explore Rating Increases with REE Medical →claim.vet may receive a referral fee. Veterans never pay more.
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