Montana Veteran Financial Benefits
Montana offers a variety of financial benefits to Service members and Veterans, providing key tax exemptions and reimbursements to support those who serve.
Montana Income Tax Exemptions for Military Pay:
Montana excludes the following types of military income from state taxes:
- Base, special, and incentive pay for active-duty U.S. Armed Forces members
- Active-duty pay for National Guard and Reserve members supporting Contingency Operations or Homeland Defense
- Combat zone compensation not fully exempt federally, including pay for officers and those hospitalized due to combat service
To claim these exemptions, Service members must submit verification documents, such as a copy of their orders, with their state tax returns.
SGLI Premium Reimbursement:
Reserve Service members called to active duty for Contingency Operations are eligible for reimbursement of SGLI premiums—up to $17.50 per month—when filing Montana state taxes.
Retirement and Disability Taxation:
- Military retired pay is generally taxed in Montana if it’s taxable at the federal level, although a partial exemption may apply. Eligible taxpayers should complete the Partial Pension and Annuity Income Exemption Worksheet on Montana Form 2.
- Up to $4,640 may be exempt, but this amount is reduced by $2 for every $1 over a $38,660 federal adjusted gross income threshold (2022 figures).
- Thrift Savings Plan (TSP) distributions are taxed and must be reported via IRS Form 1099-R.
- VA military disability retirement pay is excluded from state income, including:
- Disability compensation/pension
- Wheelchair-accessible housing grants
- Vehicle grants for severely disabled Veterans
- Dependent-care assistance benefits
Dependency and Indemnity Compensation (DIC):
VA DIC benefits to survivors of fallen Service members or Veterans who died from service-connected conditions are not subject to Montana income tax.
Survivor Benefit Plans (SBP, RCSBP, RSFPP):
Montana taxes these pensions unless federally exempt, but a partial state exemption may apply if eligibility is met.
Tax Exemption for Military Spouses:
Nonresident spouses of active-duty military stationed in Montana may be exempt from paying state income taxes on wages earned in Montana—provided they meet all of the following:
- Both are legal residents of another state
- The Service member is in Montana on military orders
- The spouse is present in Montana solely to accompany the Service member
Property Tax Reduction for Disabled Veterans:
The Montana Disabled Veteran Assistance Program (MDV) offers reduced property tax rates for qualifying disabled Veterans or their un-remarried surviving spouses. For homes located on agricultural or forest lands, the benefit covers the residence and one acre. Reductions are based on income and marital status, ranging from 50% to full exemption, and are updated annually for inflation.
Veteran Organization and Guardian Tax Exemptions:
- Veterans’ clubhouses used primarily for educational or charitable purposes are tax-exempt.
- Property managed by guardians for incompetent Veterans or minor dependents is exempt, provided it was purchased using VA benefits or government payments.
Travel Deductions for Guard and Reserve Members:
Montana National Guard and Reserve members traveling over 100 miles for military duty can deduct travel expenses on both federal and state tax forms. Supporting documentation (Form 2106 or 2106-EZ) must be attached.
Sales Tax in Montana:
- Statewide sales tax: None
- County/local sales tax: Not permitted
- Fuel tax: 27 cents per gallon (includes all applicable taxes)
Montana’s tax laws reflect strong support for its military community, easing financial burdens through exemptions, deductions, and reimbursements tailored to the needs of Service members and their families.
Recreation
Montana Outdoor Recreation Benefits for Veterans and Service Members
Montana honors its Veterans and Service members with exclusive outdoor benefits, including discounted or free hunting, fishing, and park access privileges. Here’s a breakdown of what’s available:
Discounted Licenses for Combat-Disabled Veterans
Veterans and active-duty personnel with a permanent, significant combat-related disability that affects their functional ability may purchase select Montana hunting licenses at 50% off. These include:
- Class A-3 (Deer A)
- Class A-4 (Deer B)
- Class B-7 (Deer A)
- Class B-8 (Deer B)
- Special Antelope License
Free Conservation Licenses for Guard and Reserve Members
Montana National Guard and U.S. Armed Forces Reserve members activated for at least two consecutive months outside the state in support of a contingency operation are eligible for free resident licenses for up to five years, including:
- Class A Resident Fishing License
- Class AAA Resident Combination Sports License
- Wildlife Conservation License
Note: This benefit does not include the Class A-6 Black Bear Tag.
Eligible Service members must pay the resident base hunting license fee and purchase the Aquatic Invasive Species (AIS) Prevention Pass.
To apply, submit proof of Montana residency and a copy of your DD214 to a regional Fish, Wildlife & Parks (FWP) office, the Helena headquarters, or by mail.
Hunting & Fishing Privileges for Purple Heart and Legion of Valor Veterans
Montana Residents with a Purple Heart
These Veterans may fish and hunt upland game birds (excluding turkeys) by only purchasing:
- A Wildlife Conservation License
- A Resident AIS Prevention Pass
No other hunting/fishing licenses are required.
Nonresident Purple Heart Recipients
Eligible to receive the same benefits only when participating in rehabilitative hunting/fishing trips organized by nonprofit groups. They must still purchase:
- A Wildlife Conservation License
- A Nonresident AIS Prevention Pass
Legion of Valor Members (Resident and Nonresident)
Can fish in Montana with just a Wildlife Conservation License — no other licenses are necessary.
Fishing Privileges for Veterans in VA Hospitals
Veterans receiving care in a VA medical facility can fish in Montana without a license. Instead, they must carry a signed document from hospital staff verifying their inpatient status.
Donated Hunting Licenses for Disabled Service Members and Veterans
Montana residents can donate their hunting licenses to be reissued to eligible disabled Veterans or Service members through nonprofit organizations offering rehabilitative hunting trips.
Eligible recipients include:
- Purple Heart recipients
- Veterans with a 70%+ disability rating due to combat injuries or who were medically retired from service
- Active-duty personnel receiving treatment at a medical facility
Veterans do not need to be Montana residents or hold a conservation license to use a donated tag.
Resident-Rate Licenses for Nonresident Service Members
Nonresident active-duty personnel and their dependents stationed in Montana for 30+ days may purchase hunting, fishing, and trapping licenses at resident rates.
If reassigned outside the state, residency status ends unless the spouse and dependents remain in Montana and residency conditions continue to be met.
Montana State Parks Camping Discounts for Veterans
Montana resident Veterans can enjoy a 50% discount on camping fees (excludes electrical hookups) at state parks. Acceptable proof of eligibility includes:
- DD214
- VA ID card
- Montana driver’s license with a Veteran designation
In addition, residents who qualify for motor vehicle registration fee exemptions are also exempt from state park entry fees.
Montana Military & Veterans Miscellaneous Benefits
Montana Military Family Relief Fund (MMFRF):
The MMFRF offers financial assistance to families of Montana National Guard and U.S. Armed Forces Reserve members who are on federal active duty for a contingency operation on or after April 28, 2007. These grants aim to ease the financial burden on families coping with the absence of a wage earner due to deployment. Covered expenses include housing, food, utilities, healthcare, and other essential needs.
Status-Based Grant:
This grant provides a flat $250 per eligible dependent to help cover costs associated with deployment.
Eligibility Criteria for Status-Based Grant:
- Applicant must be a Montana resident and an immediate family member of a Montana National Guard or Reserve member on federal active duty for a contingency operation lasting at least 30 continuous days
- Service member must hold a rank no higher than O-3 or W-3
- Dependent must be listed in the Defense Enrollment Eligibility Reporting System (DEERS)
- A fully completed and signed application must be submitted
Need-Based Grant:
This grant supports families facing a drop in household income or unexpected expenses during deployment. If military earnings are at least 30% lower than the civilian income or a financial emergency arises, a grant of up to $2,000 may be awarded.
Eligibility for Need-Based Grant:
- Must first meet all status-based grant criteria
- Provide documentation showing military pay is 30% or more below the previous civilian income, or
- Provide evidence of a financial emergency requiring assistance
- Submit a complete and signed application
Casualty-Based Grant:
This grant provides $2,000 to help cover expenses for Service members who are non-fatally injured in combat-related incidents during contingency operations.
Eligibility for Casualty-Based Grant:
- Must be a Montana-based National Guard or Reserve member on federal active duty for a contingency mission lasting 30+ consecutive days
- Injury must be nonfatal and directly caused by hostile combat activity
- Application must be fully completed and signed
Education Programs
Montana Higher Education Benefits for Service Members, Veterans, and Their Families
Tuition Waivers Offered by the Montana Board of Regents
Montana’s Board of Regents of Higher Education provides tuition waivers for eligible Veterans, National Guard members, and war orphans attending schools in the Montana University System. These waivers apply strictly to tuition and do not cover additional fees. Students can continue to receive the waiver as long as they meet academic standards and other campus-specific requirements. Combined tuition waivers or discounts may not exceed the total cost of tuition.
Specific Waivers Available
Montana National Guard Tuition Waiver
Members of the Montana National Guard may qualify for tuition assistance if they:
- Are actively serving at the beginning of the semester
- Have completed Initial Entry Training and are certified in good standing
- Meet the institution’s admission criteria
Waivers are applicable to both undergraduate and graduate programs and are considered a last-dollar award—applied only after other financial aid sources are exhausted.
Montana War Orphans Tuition Waiver
Children under age 26 of Montana residents who died due to combat-related injuries, diseases, or disabilities may be eligible for a full tuition waiver. This benefit applies if the Service member served during World War II, Korea, Vietnam, Iraq, or Afghanistan. The waiver can be used toward a bachelor’s degree and cannot be combined with other waivers.
Tuition Waiver for Honorably Discharged Wartime Veterans
Wartime Veterans who are Montana residents may be eligible for free tuition if they:
- Received an Honorable Discharge (other types do not qualify)
- Served on active duty (not including training)
- Have used or are no longer eligible for VA education benefits
Eligibility depends on service during specific conflicts or if the Veteran received designated campaign medals. Veterans who served during and before the Vietnam era may use the waiver for all degree levels. Post-Vietnam Veterans are limited to their first certificate, associate, or bachelor’s degree.
Tuition Waiver for Surviving Dependents of Montana National Guard Members
Surviving spouses or children of Montana National Guard members killed in the line of duty during state active service are eligible for tuition waivers at public universities in Montana. Applicants cannot receive this waiver if they have similar financial aid or benefits from other sources.
Grateful Nation Montana Assistance
This program supports the children of Service members who lost their lives while serving in Iraq or Afghanistan. Grateful Nation Montana connects eligible students with academic support services such as tutoring and mentoring through high school to prepare them for college success. Participating colleges help students access available financial and educational resources.
Support for Military-Connected Students
Montana Interstate Compact on Educational Opportunity for Military Children (MIC3)
Montana participates in the MIC3, which ensures military children face fewer obstacles due to family relocations or deployments. The compact helps by:
- Easing enrollment and records transfer
- Standardizing academic placement
- Ensuring eligibility for school activities
- Supporting on-time graduation
- Encouraging cooperation between schools and military families
Purple Star School Program
Montana recognizes schools that provide exceptional support to military-connected students through the Purple Star School Designation. To qualify, schools must:
- Appoint a dedicated staff liaison trained to support military families
- Train teachers on military-related student needs
- Maintain a resource-rich webpage for military families
Eligible schools receive an official Purple Star to display their commitment to serving military communities.
Housing: Below are locations of Veterans’ Homes in Montana.
Montana State Veterans’ Homes: The state operates three facilities providing cost-effective, long-term care services to elderly and disabled Veterans, along with qualified Spouses.
Montana State Veterans Home at Columbia Falls
Montana State Veterans Home at Glendive
Veterans’ Homes Features:
- Lowered costs for eligible Veterans
- Access to Physical, Occupational, and Speech Therapy
- Nursing care and assisted living (domiciliary) services
- Specialized memory care units
- Veteran-focused programs, services, and recreational activities
Eligibility for Montana State Veterans’ Homes:
To qualify for residency, applicants must be honorably discharged Veterans or the spouse/surviving spouse of a qualifying Veteran who requires long-term care. Spouses may be admitted if space permits. Couples may be accepted together if both meet nursing care criteria.
Per Montana Code 10-2-403, additional admission factors include:
- Applicant’s age
- Physical and mental condition
- Availability of other housing options
- Duration of Montana residency
- Gender (based on housing availability)
- Whether the facility can meet specific care needs
- Other criteria outlined by the Montana Department of Public Health and Human Services
Employment & Job Training for Veterans in Montana
Veterans’ Preference in Public Employment:
Montana gives hiring preference to Veterans and eligible family members applying for public sector jobs. When positions are scored, Veterans receive:
- +5% for honorably discharged Veterans
- +10% for disabled Veterans or qualifying relatives
When no score is used, qualified Veterans receive preference during the selection process, which may include guaranteed interviews.
Private Sector Veteran Hiring Policy:
Montana allows private employers—both for-profit and non-profit—to create voluntary Veteran hiring preference policies.
Paid Military Leave for State Workers:
Montana public employees who serve in the Reserves or National Guard may receive up to 120 hours of paid military leave annually, with rollover allowed up to 240 hours.
Federal Employment Preferences
Veterans receive extra points on federal hiring exams/interviews:
- +5 Points: For service during designated wartime periods or military campaigns
- +10 Points: For service-connected disabilities or Purple Heart recipients
- Derived Preference: Spouses or parents of certain disabled or deceased Veterans may also qualify
Note: To be eligible, some Veterans must meet continuous service requirements unless separated for disability, hardship, or certain exceptions.
USERRA – Job Protection for Service Members
The Uniformed Services Employment and Reemployment Rights Act (USERRA) ensures that those leaving civilian jobs for military duty can return to work with:
- No loss of seniority or benefits
- Job protection for up to 5 years of service
- Reasonable accommodations for disabilities
- Extended health and pension coverage (up to 24 months)
Montana Veteran Employment Services
Montana Job Service Offices provide:
- Priority access to employment and training services
- Dedicated Veteran Employment Specialists trained to assist Veterans, transitioning service members, and eligible spouses
- Specialized help for disabled or at-risk Veterans via DVOPs and LVERs
Eligible Spouses/Dependents Also Qualify, including:
- Surviving spouses of service members who died due to service-connected conditions
- Spouses of service members who are MIA, captured, or 100% VA-disabled
For more information, Veterans can connect with local Job Service locations or the Montana Department of Labor’s Veteran Services.
Burials and Memorials
It’s important to record your wishes regarding burial in a national cemetery and the use of a VA-provided headstone, ensuring this documentation is kept with your personal and medical records.
The National Cemetery Administration (NCA) honors the service of eligible Veterans and their families by offering a dignified final resting place and a memorial that commemorates their sacrifice to the nation.
Burial benefits include a gravesite in one of the NCA’s open cemeteries with available space, opening and closing of the grave, ongoing site maintenance, a government-issued headstone or marker, a burial flag, and a Presidential Memorial Certificate—all provided at no cost to the family. Some Veterans may also be eligible for a burial allowance. Cremated remains receive the same respectful treatment and are buried or inurned with full honors.
Spouses and dependents who qualify are also entitled to burial benefits, including interment alongside the Veteran and continued care of the burial site. Their names and birth/death dates are inscribed on the Veteran’s headstone without any charge. Notably, spouses and eligible dependents can be laid to rest even if they pass before the Veteran and do not have to be buried in the same cemetery as the Veteran.
National Cemeteries include:
Laurel: Yellowstone National Cemetery
Missoula: Fort Missoula Post Cemetery
Montana VA Benefit Resources
Veterans in Montana have access to support through a Regional VA Benefits Office and a VA Medical Center within the state.
Montana VA Regional Benefits Office
- Fort Harrison: Fort Harrison Regional Office
Montana VA Medical Centers
- Miles City: Miles City VA Clinic and Community Living Center
Key Details About Montana Veteran Benefits
If you’re a Veteran in Montana applying for VA benefits for the first time, you’ll need to provide a copy of your DD 214 (discharge document). This form verifies your discharge status, full legal name, Social Security number, branch of military service, and your service dates. Most VA benefits are available to those with honorable or general discharges.
It’s essential to store your discharge documents and medical records securely—preferably in a fireproof safe or other protected location—so that you and your loved ones can easily access them when needed.
Eligibility for most VA benefits hinges on an honorable or general discharge from active duty. Active duty includes full-time service in the Army, Navy, Air Force, Marine Corps, or Coast Guard, as well as commissioned officers in agencies like the Public Health Service, Environmental Science Services Administration, or NOAA.
Veterans discharged under “dishonorable” conditions, particularly those resulting from general court-martial, may be ineligible for VA benefits. However, incarcerated Veterans or those on parole may still qualify for certain services. If you have multiple discharges under different conditions or need clarification, your nearest VA regional office can help determine your benefit eligibility.
Information current as of November 2023.
Montana Veteran Benefits
Disabled Veterans in Montana with a VA disability rating of 90% or below may qualify for extra benefits. Reach out to Vital Veterans Consultants for a no-cost, no-obligation consultation. Our team can review your case to see if you’re eligible for more support.
