Is Social Security Taxed in Montana in 2026?
Is Social Security taxed in Montana in 2026? Yes. Yes. Montana does not offer a flat income exemption; instead, it taxes the federally taxable portion of Social Security and allows a deduction of up to $5,500 (single) or $11,000 (joint) for filers 65+.
Income thresholds shown adjust annually for inflation. Figures reflect the most recently available data — always confirm the current-year threshold with your state's Department of Revenue before filing.
How Montana's Social Security Tax Rule Works
Does not use a simple income cutoff like the other seven states. Montana starts from the federally taxable portion of Social Security, then allows a $5,500 (single) / $11,000 (joint) deduction for filers 65+. Most Montana retirees owe some state tax on their benefits.
Montana Federal-Method Deduction Rules
Montana is one of the few states that does not use an AGI cutoff. Instead, Montana calculates tax using the federally taxable portion of your Social Security benefits:
Calculate Your Federal Taxable Benefits
State taxes on Social Security start with your federally taxable benefits. Use our free interactive tool to compute your Combined Income threshold.
Compare With Other Social Security Taxing States
Only 8 states in the US tax Social Security in 2026. Explore how other taxing states structure their exemptions:
Frequently Asked Questions (Montana)
Is Social Security taxed in Montana?
Yes, Montana is one of only 8 states that levy state income tax on Social Security benefits in 2026. However, Yes. Montana does not offer a flat income exemption; instead, it taxes the federally taxable portion of Social Security and allows a deduction of up to $5,500 (single) or $11,000 (joint) for filers 65+.
What is the top state income tax rate in Montana?
Montana's top marginal income tax rate for 2026 is 5.90%. The actual tax paid on Social Security benefits depends on your taxable threshold and eligible deductions.
How can retirees in Montana minimize Social Security tax?
Retirees can minimize state tax on benefits by managing their Modified Adjusted Gross Income (MAGI) through strategic Roth IRA distributions, timing traditional retirement account withdrawals, and maximizing age-specific deductions.