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MontanaSB 9369th Legislature, Regular Session (2025)SenateWALLET

Revise income taxes related to retired military members

Sponsored By: John Fuller (Republican)

Became Law

Taxation (Generally)Taxation--Individual IncomeMilitary AffairsRetirementRevenue, State

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Tax break for older homebuyer accounts

Beginning January 1, 2026, Montana does not tax interest and other income earned in a first-time home buyer savings account from contributions made before January 1, 2024. Withdrawals used to pay eligible costs for your first-time single-family home are also subtracted on your Montana return.

Extra $5,500 subtraction for seniors 65+

Beginning January 1, 2026, each taxpayer age 65 or older gets an extra $5,500 subtraction on the Montana income tax return. Each year by November 1, the Department of Revenue updates this amount for inflation and rounds it to the nearest $10. The updated amount applies for that tax year.

New tax break for military retirees

Beginning January 1, 2026, you can subtract the smaller of your Montana-source wages or 50% of your military pension or retirement pay on your Montana return. Up to 50% of survivor benefits also qualifies. You must meet residency rules: you became a resident on or after June 30, 2023, or you were a resident before you started getting the pension and stayed a resident after. You can claim this for up to five straight years. You cannot claim it if you claimed it before and then became a nonresident. This subtraction ends after December 31, 2033.

Tax changes start January 1, 2026

The law takes effect January 1, 2026 and applies to tax years that start after December 31, 2025. Section 4 of Chapter 650, Laws of 2023, is repealed on January 1, 2026. The text does not state what that section did.

Sponsors & Cosponsors

Sponsor

  • John Fuller

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 373 • No: 22

Senate vote • 4/29/2025

Do Pass

Yes: 50 • No: 0

Senate vote • 4/28/2025

Do Pass

Yes: 49 • No: 0

Senate vote • 4/24/2025

Do Concur

Yes: 93 • No: 7

Senate vote • 4/22/2025

Do Concur

Yes: 88 • No: 10

Senate vote • 2/3/2025

Do Pass

Yes: 46 • No: 3

Senate vote • 1/31/2025

Do Pass

Yes: 47 • No: 2

Actions Timeline

  1. Chapter Number Assigned

    5/16/2025Senate

  2. Signed by Governor

    5/13/2025Senate

  3. Transmitted to Governor

    5/5/2025Senate

  4. Signed by Speaker

    5/5/2025House

  5. Signed by President

    5/2/2025Senate

  6. Returned from Enrolling

    5/1/2025Senate

  7. Sent to Enrolling

    4/29/2025Senate

  8. 3rd Reading Passed as Amended by House

    4/29/2025Senate

  9. 2nd Reading House Amendments Concurred

    4/28/2025Senate

  10. Returned to Senate with Amendments

    4/24/2025House

  11. 3rd Reading Concurred

    4/24/2025House

  12. Revised Fiscal Note Printed

    4/24/2025Senate

  13. Revised Fiscal Note Signed

    4/24/2025Senate

  14. Committee Report--Bill Concurred

    4/23/2025House

  15. Committee Executive Action--Bill Concurred

    4/23/2025House

  16. Hearing

    4/22/2025House

  17. Hearing

    4/22/2025House

  18. Rereferred to Committee

    4/22/2025House

  19. 2nd Reading Concurred

    4/22/2025House

  20. Revised Fiscal Note Requested

    4/17/2025Senate

  21. Committee Report--Bill Concurred as Amended

    4/17/2025House

  22. Committee Executive Action--Bill Concurred as Amended

    4/17/2025House

  23. Taken from Table in Committee

    3/19/2025House

  24. Tabled in Committee

    2/18/2025House

  25. Hearing

    2/5/2025House

Bill Text

  • Enrolled

    4/29/2025

    PDF

  • As Amended (Version 2)

    4/18/2025

    PDF

  • Introduced

    1/6/2025

    PDF

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