Montana Veteran Benefits at a Glance
Montana is home to roughly 90,000 veterans and operates its statewide programs through the Montana Veterans' Affairs Division. The state's veterans benefits landscape combines federal VA benefits (disability compensation, healthcare, GI Bill, VA home loans) with a layer of state-specific programs that can meaningfully change a veteran's cost of living — particularly through property tax relief and state income tax treatment of military retirement pay.
Montana now joins the no-retirement-tax states and offers unmatched outdoor access — though winters are harsh and rural healthcare can be limited. For service members deciding where to retire — or for veterans evaluating whether to relocate — the questions that matter most are usually: how will my retirement pay be taxed, what happens to my property tax bill if I'm 100% disabled, can my children use state tuition benefits, and how strong is the state veterans agency? This guide walks through each in turn.
Montana Taxes for Veterans
Military Retirement Pay
Montana fully exempts military retirement pay from state income tax as of 2024 (SB 104).
This treatment matters because military retirement pay typically ranges from $20,000 to $90,000+ per year depending on rank and years of service. In a state that fully exempts the income, a retiree drawing $50,000 of retired pay avoids the entire state income tax on that amount — which, in a 5% state, equals roughly $2,500/year in savings versus a fully-taxing state. Over 20 years of retirement, that one rule alone can be worth $50,000+.
VA Disability Compensation
Like all states, Montana follows federal law and does not tax VA disability compensation. Whether you receive $171/month at 10% or roughly $4,044+/month at 100% with a qualifying dependent, that money is tax-free at both the federal and state level. See our VA disability calculator to estimate your monthly compensation.
Montana Property Tax Benefits for Veterans
Headline: Veterans rated 100% disabled qualify for the Montana Disabled American Veterans Property Tax Reduction (MDV), reducing property tax by 50–100% based on income.
Montana's MDV program reduces property tax on the primary residence by 50%, 70%, 80%, or 100% depending on the veteran's federal adjusted gross income. 100% rated veterans (or unmarried surviving spouses) with lower incomes can receive complete property tax relief on their homestead.
For most homeowners, property tax is the second-largest annual housing expense after the mortgage itself. Montana's partial exemption still produces meaningful savings, especially for veterans with higher disability ratings, and stacks with senior citizen and other available exemptions.
How to Apply
Property tax exemptions are administered at the county level by the county assessor (sometimes called tax assessor, appraisal district, or commissioner of revenue depending on the state). You'll typically need: a copy of your VA award letter showing disability percentage and effective date, proof of residency, proof of ownership (deed), and a completed state application form. Many counties accept applications year-round but only apply the exemption beginning in the next tax year.
Montana Education Benefits for Veterans & Dependents
Montana University System Honorably Discharged Veteran Fee Waiver
Honorably discharged combat-service veterans qualifying as Montana residents may receive a fee waiver at Montana University System schools that covers registration and incidental fees not paid by GI Bill.
These state programs typically stack with — rather than replace — federal benefits like the Post-9/11 GI Bill. Many veterans use federal benefits first and state programs for any remaining costs, or use state benefits for dependents while preserving federal benefits for the service member. Application is usually handled directly through the school's veteran affairs office, which coordinates with the state agency.
In-State Tuition
Under federal law (the Veterans Access, Choice, and Accountability Act), public colleges in Montana — like all states — must charge in-state tuition to veterans using GI Bill benefits regardless of state residency, provided the veteran enrolls within three years of discharge. This rule is especially valuable in higher-cost states like California, Maryland, and Washington.
Employment & Professional Licensing
State Veteran Hiring Preference
Veteran preference points on Montana state employment; Montana Job Service provides priority of service.
Occupational Licensing
Military experience credit for occupational licensing; expedited military spouse licensure.
Translating military experience into civilian credentials is one of the most common pain points in transition. Montana's licensing rules can shave months — and thousands of dollars — off the path to civilian roles in healthcare, commercial driving, IT, and the trades. The Montana Veterans' Affairs Division can point you to industry-specific resources and to apprenticeship programs that count GI Bill benefits.
State Parks, Hunting & Fishing
Montana State Parks
Free Montana State Parks day-use for resident disabled veterans.
Hunting & Fishing Licenses
Resident disabled veterans (100%) qualify for free hunting and fishing licenses including conservation tags.
Vehicles, Plates & Driver Licenses
Disabled Veteran License Plates
Disabled veteran plates issued at no charge; veterans rated 100% qualify for permanent registration on one vehicle.
Veteran Driver License Designation
Veteran designation on Montana driver license/ID at no extra cost. The veteran designation is recognized as proof of service at most businesses offering veteran discounts (restaurants, retailers, hotels) and eliminates the need to carry your DD-214 for routine ID purposes.
State Veteran Homes & Cemeteries
Montana operates 2 state veteran homes, providing skilled nursing, domiciliary, and/or memory care to eligible veterans (and in some cases spouses and Gold Star parents). Admission requirements vary by facility but generally require honorable discharge, state residency, and clinical need for the level of care offered. The VA typically reimburses a portion of the per-diem cost, making state homes significantly more affordable than private long-term care.
The state also maintains 2 state veteran cemetery/cemeteries in addition to any federal VA national cemeteries within the state. Burial benefits for honorably discharged veterans typically include the gravesite, opening and closing, a government headstone or marker, a U.S. burial flag, and a Presidential Memorial Certificate.
Montana Veterans' Affairs Division
The Montana Veterans' Affairs Division is Montana's official cabinet-level (or commission-level) state agency for veteran affairs. It administers state benefits, accredits and supervises County Veteran Service Officers (CVSOs), operates state veteran homes and cemeteries, and serves as the liaison between Montana veterans and the federal VA. The agency does not charge fees for assistance — accredited VSO help is always free.
- Website: https://montanadma.org/montana-veterans-affairs
- Phone: 406-324-3741
- Capital: Helena, MT
When in doubt, start with the state agency. They can refer you to a free accredited representative, walk you through state-specific applications (which are easy to miss when you only look at VA.gov), and help with emergency assistance programs available in many states for veterans experiencing financial crisis.
Is Montana a Good State for Veterans?
Cost of Living
Montana's overall cost of living is average relative to the U.S. average. Combined with the state's tax treatment of retirement pay and property tax rules, this drives the real after-tax purchasing power of a military retirement.
Climate
Continental and alpine climate; cold snowy winters, mild summers, vast open spaces.
Veteran Population & Community
With roughly 90,000 veterans, Montana has a smaller veteran population, which often means tighter-knit communities but potentially longer drives to a full-service VA medical center.
Military Installations
Major active-duty installations in Montana: Malmstrom AFB. Proximity to an active-duty base usually means better commissary/exchange access, on-base healthcare options (Tricare), and a stronger pool of veteran-friendly employers and housing.
Frequently Asked Questions — Montana Veterans Benefits
What benefits do veterans get in Montana?
Montana veterans receive a mix of property tax relief, education benefits, employment preference, free or discounted state park access, hunting and fishing license discounts, and access to 2 state veteran homes and 2 state veterans cemetery/cemeteries. Montana now joins the no-retirement-tax states and offers unmatched outdoor access — though winters are harsh and rural healthcare can be limited.
Do disabled veterans pay property taxes in Montana?
Montana offers a partial property tax exemption for disabled veterans rather than a full exemption. Montana's MDV program reduces property tax on the primary residence by 50%, 70%, 80%, or 100% depending on the veteran's federal adjusted gross income. 100% rated veterans (or unmarried surviving spouses) with lower incomes can receive complete property tax relief on their homestead.
Does Montana tax military retirement pay?
Montana fully exempts military retirement pay from state income tax as of 2024 (SB 104).
Does Montana offer free college for veterans or dependents?
Montana's primary education benefit is the Montana University System Honorably Discharged Veteran Fee Waiver. Honorably discharged combat-service veterans qualifying as Montana residents may receive a fee waiver at Montana University System schools that covers registration and incidental fees not paid by GI Bill.
What is the official state veterans agency in Montana?
The Montana Veterans' Affairs Division (406-324-3741) is the official state agency. Visit https://montanadma.org/montana-veterans-affairs for the most current programs, accredited claim assistance, and county-level Veteran Service Officer contacts.
Is Montana a good state for military retirees?
Montana now joins the no-retirement-tax states and offers unmatched outdoor access — though winters are harsh and rural healthcare can be limited. Cost of living is average, and continental and alpine climate; cold snowy winters, mild summers, vast open spaces.
Disclaimer: State veterans benefits change frequently as legislatures pass new laws. Always verify current eligibility, dollar amounts, and application procedures with the Montana Veterans' Affairs Division or an accredited Veterans Service Officer before relying on any information on this page. This site provides educational information, not legal or tax advice.