Does Montana tax Social Security benefits?

Yes — with exemptions for many retirees.

Montana taxes Social Security benefits, generally following the federal rules for how much of your benefit is taxable. The exact amount depends on your total income; lower-income retirees may owe nothing.

Note: this covers state tax only. The federal government may tax up to 85% of your benefits depending on your combined income, regardless of where you live.

See how your claiming age affects your benefit.

Reviewed 2026-06-17. Verify with the Montana Department of Revenue.

Updated July 2026