Does Montana tax Social Security?
Taxes Social Security for some people
Yes, in part. Montana starts from federal taxable income, so the Social Security that is taxed on your federal return is also taxed by Montana. People 65 and older get a separate $5,500 subtraction.
What the Montana Department of Revenue says
We do not paraphrase the rule from memory. This is the state's own wording, copied from the page linked below it:
“Taxable Social Security Income and net operating losses are included in Montana taxable income to the extent that they are included in federal taxable income.”
Federal tax is a separate question
Whatever Montana does, the IRS decides on its own how much of your benefit is taxable on your federal return. Whether it does depends on your other income. Our taxable Social Security calculator follows the IRS worksheet line by line, and this guide explains the rule.
You can ask Social Security to withhold federal tax from each payment. Withholding for Montana state tax, if you need it, is arranged with the state, not with Social Security. State rules change with new laws, so check with the Montana Department of Revenue before you file.
Other states where the answer is “taxes Social Security for some people”
Check our work
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- Montana Tax Simplification Resource HubMontana Department of Revenue. Read on November 12, 2026.