Social Security benefits in Montana
Varies
Is Social Security Taxed in Montana?
Short answer: Yes. Montana taxes Social Security to the same extent it is included in federal taxable income and has no Social Security-specific exemption. Taxpayers 65 and older get a general subtraction from any income: $5,500 base, indexed for inflation ($5,660 per person for 2025; double for joint filers when both spouses are 65+). The statutory rule is 2024 law, with no change found for 2026.
Federally, up to 85% of benefits can be taxable depending on your combined income (IRS Pub 915); that part doesn't change by state.
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.
Social Security benefits in Montana
Varies
Individuals / Personal Taxes
Yes. Montana taxes Social Security to the same extent it is included in federal taxable income and has no Social Security-specific exemption. Taxpayers 65 and older get a general subtraction from any income: $5,500 base, indexed for inflation ($5,660 per person for 2025; double for joint filers when both spouses are 65+). The statutory rule is 2024 law, with no change found for 2026.
Business justification
Yes. Montana taxes Social Security to the same extent it is included in federal taxable income and has no Social Security-specific exemption. Taxpayers 65 and older get a general subtraction from any income: $5,500 base, indexed for inflation ($5,660 per person for 2025; double for joint filers when both spouses are 65+). The statutory rule is 2024 law, with no change found for 2026. Federally, up to 85% of benefits can be taxable depending on your combined income (IRS Pub 915); that part doesn't change by state.
Category
- Personal Tax Deductions