Retirement income in Montana
Varies
Does Montana Tax Retirement Income?
Short answer: Partly. Pensions and 401(k)/IRA withdrawals are taxable; the former partial pension exemption was repealed. Taxpayers 65+ get a general senior subtraction ($5,660 per person in 2025, inflation-indexed) that can offset retirement income. Classified as partial because of the general age-65 subtraction, which applies to any income rather than only retirement income. the 2025 figure is shown.
Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Retirement income in Montana
Varies
Individuals / Personal Taxes
Partly. Pensions and 401(k)/IRA withdrawals are taxable; the former partial pension exemption was repealed. Taxpayers 65+ get a general senior subtraction ($5,660 per person in 2025, inflation-indexed) that can offset retirement income. Classified as partial because of the general age-65 subtraction, which applies to any income rather than only retirement income. the 2025 figure is shown.
Business justification
Partly. Pensions and 401(k)/IRA withdrawals are taxable; the former partial pension exemption was repealed. Taxpayers 65+ get a general senior subtraction ($5,660 per person in 2025, inflation-indexed) that can offset retirement income. Classified as partial because of the general age-65 subtraction, which applies to any income rather than only retirement income. the 2025 figure is shown. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions