Montana disabled veteran property tax exemption (2026)
At 100%, property tax is cut 100%, 80%, 70% or 50% depending on federal adjusted gross income (limits for married or head-of-household veterans, tax year 2027). VA disability pay isn't part of that income.
See your true monthly cost in Montana →
Free. Applies your rating, VA pay and this exemption to any home.
Property tax break by VA rating
| VA rating | Property tax break | Saves / yr* |
|---|---|---|
| 10–90% | No statewide exemption | — |
| 100% or IU | If income tiers up to $74,482, VA pay doesn't count: 50–100% of the tax bill removed | $2,760 |
*Example: a $400,000 home at Montana's average property tax rate of 0.69%, about $2,760 a year before any exemption. Your bill depends on your county and home. IU means paid at the 100% rate for individual unemployability. P&T means permanent and total. Exemptions aren't automatic: you apply with your county assessor after you buy.
Military retirement pay
Military retirement partly taxed. 50% deductible for the first 5 years after you retire or move here (capped at your Montana wages). $5,500 more at 65+.
VA disability pay is tax-free in every state.
Home loan and down payment help
- Montana Housing ↗ (state housing agency: first-time buyer and down payment programs)
Programs change often. Check income limits, first-time buyer rules and whether they can be combined with a VA loan.
Get help in Montana
- Montana Veterans Affairs Division ↗: free help with state veteran benefits.
- Your county assessor's office handles the property tax exemption application.