Jasz
VIP Contributor
Military Retirement Tax in Montana The lowest income tax rate is:1% (on taxable income up to $3,300).
The highest income tax rate:6.75 percent (on taxable income greater than $19,800) The state provides an inflation-adjusted exemption for pension income, which includes military retirement pay. However, veterans who have a substantial military pension probably will not be eligible.
The maximum exemption for the tax year 2022 is $4,640.However, veterans with a federal adjusted gross income of at least $40,980 (or 43,300 for joint filers) are not eligible for the exemption.If both spouses receive pension benefits, married couples should determine whether separate returns would allow each spouse to deduct $4,640. Taxpayers over the age of 65 can also deduct interest income up to a maximum of $800 ($1,600 for joint filers).
The highest income tax rate:6.75 percent (on taxable income greater than $19,800) The state provides an inflation-adjusted exemption for pension income, which includes military retirement pay. However, veterans who have a substantial military pension probably will not be eligible.
The maximum exemption for the tax year 2022 is $4,640.However, veterans with a federal adjusted gross income of at least $40,980 (or 43,300 for joint filers) are not eligible for the exemption.If both spouses receive pension benefits, married couples should determine whether separate returns would allow each spouse to deduct $4,640. Taxpayers over the age of 65 can also deduct interest income up to a maximum of $800 ($1,600 for joint filers).
