Last checked October 30, 2026.
Montana taxes Social Security only as much as the federal government does, charges no sales tax, and gives residents 65 and older a $5,660 subtraction, but pensions and IRA withdrawals are taxed at regular rates. The bigger retirement costs here are housing in the popular towns, distance to specialist care, and long-term care.
How Montana taxes retirement income
| Income | Montana treatment |
|---|---|
| Social Security | Taxed only to the extent it’s included in your federal taxable income |
| Pensions, IRA and 401(k) withdrawals | Taxed at regular rates (4.7% and 5.65% in 2026). The old partial pension exclusion was repealed starting in 2024. |
| Railroad Retirement (Tier I and II) | Exempt |
| Age 65 and older | A subtraction of $5,660 per person (the amount in the state’s 2026 withholding guide; adjusted for inflation each year) |
Sources: Montana Department of Revenue tax simplification guide; Publication 1, 2026. Montana starts from federal taxable income, so federal deductions for older taxpayers also lower your Montana tax. See Montana income tax for the brackets.
Property tax help for older homeowners and renters
| Program | What it does | Who qualifies |
|---|---|---|
| Elderly Homeowner/Renter Credit | Refundable income tax credit of up to $1,150 | Age 62 or older, household income under $45,000, living in Montana at least 9 months and renting or owning a Montana home at least 6 months of the year |
| Property Tax Assistance Program | Cuts the tax rate on the first $418,000 of your home’s market value by 80%, 50% or 30% (Montana DOR) | Any age, by income. For tax year 2027 (based on 2025 income): up to $29,943 single, $40,131 married or head of household. Apply by April 15. |
| Montana Disabled Veteran program | Cuts property tax by 50% to 100% | Veterans with a 100% service-connected disability rating, or an unmarried surviving spouse, under income limits ($64,551 single for tax year 2027) |
These stack on top of the 2026 homestead rate, which lowers the tax on any home you live in at least seven months a year.
What an average Social Security check covers
The average retired worker’s Social Security benefit was $2,088.79 a month in September 2026 (SSA). Rent takes very different shares of that check depending on the town:
| Town | 1-bedroom rent | Share of the average check |
|---|---|---|
| Lewistown | $560 asking | 27% |
| Havre | $793 asking | 38% |
| Butte | $972 asking | 47% |
| Billings | $1,130 asking | 54% |
| Missoula | $1,313 asking | 63% |
| Helena | $1,393 asking | 67% |
| Bozeman | $1,891 asking | 91% |
Rent figures from our rent by town page; shares are our calculation. Smaller towns such as Dillon, Laurel and Glendive have Census median rents of $530 to $790.
Health care and Medicare
- Medicare Part B costs $202.90 a month in 2026, with a $283 deductible (CMS).
- Medicare Advantage is less common here. About 30% of Montana’s Medicare beneficiaries were in Advantage plans in February 2026 (our calculation: 80,720 of about 270,312), compared with 51% nationally (healthinsurance.org, citing CMS). Choices thin out in the east: Blue Cross Blue Shield of Montana’s Advantage plans were offered in 39 of 56 counties for 2026 (Roundup Record-Tribune).
- Distance. Specialists and larger hospitals are concentrated in Billings, Missoula, Bozeman, Great Falls, Helena and Kalispell. See healthcare costs and access.
Long-term care
| Type of care | Montana median, 2025 | U.S. median |
|---|---|---|
| Assisted living | $72,900 a year (about $6,075 a month) | About $6,200 a month |
| Nursing home, private room | $114,975 a year ($315 a day) | About $10,798 a month |
| Nursing home, semi-private room | $107,675 a year ($295 a day) | |
| In-home caregiver, 44 hours a week | $86,944 a year |
Source: CareScout 2025 Cost of Care survey for Montana and national figures.
Related
- Town finder (filter by hospital in town)
- Home values in all 56 counties