Updated September 5, 2026. Quick answer: Yes, to the same extent the federal government taxes it. Montana repealed its own separate Social Security worksheet in 2024 and now simply follows the federal taxable amount.
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Confidence note: medium. This page is scoped to Social Security taxation specifically. For the state’s full retirement-tax picture (pensions, tax rates, estate and probate), see how Montana taxes retirement income generally.
How Montana taxes Social Security benefits
| State personal income tax | Yes |
|---|---|
| Social Security treatment | Taxed, same as federal |
| How it works | Montana’s 2021-2023 tax-simplification legislation (SB 399, SB 550) eliminated the state’s own Social Security worksheet effective tax year 2024; Montana taxable income now includes “taxable Social Security Income … to the extent that they are included in federal taxable income,” meaning the same federal 0%/50%/85% inclusion tiers apply with no separate state add-back or exemption. A general age-65+ standard subtraction of $5,500 (single) / $11,000 (joint, both 65+) applies to overall taxable income, not specifically to Social Security. |
| Income threshold / phase-out | Taxed at the same percentage the IRS taxes it (0%, 50%, or up to 85% depending on combined income), with no separate Montana-specific exemption. |
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Governing citation: Title 15, ch. 30, part 21, MCA (post-tax-simplification conformity provisions).
- Montana Dept. of Revenue, Tax Simplification Resource Hub
- Montana Legislative Fiscal Division, SB 399 memo (June 2022)
Read September 5, 2026.
Related: how Montana taxes retirement income generally · does Montana tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.