Is Social Security taxed in Montana?
Social Security IS taxed, partially, with income thresholds.
| Montana status (2026) | Partial taxation |
| Detail | MT is one of the 8 states taxing Social Security in 2026: federally-taxed portion flows to state, with a modest 65+ subtraction; most seniors pay at least something. |
| Federal layer | Up to 85% of benefits taxable federally above $34k (single) / $44k (joint) provisional income, unchanged in 2026. |
| SSI (Supplemental Security Income) | Never taxed by any state. |
| Verified | 2026 legislation compendium (CT OLR 2026-R-0106) + socialsecuritytracker 2026 |
Montana in context
As of 2026, only 8 states tax Social Security at all: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont. West Virginia completed its phase-out for tax year 2026; Missouri, Kansas and Nebraska dropped taxation earlier. Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Montana: MT is one of the 8 states taxing Social Security in 2026: federally-taxed portion flows to state, with a modest 65+ subtraction; most seniors pay at least something.
What "partial taxation" means at filing time
- Your provisional income = adjusted gross income (pre-SS) + nontaxable interest + 50% of Social Security. That's the number every threshold in the table keys off.
- Where SS is taxed, only a slice of benefits enters taxable income: 50% band up to the upper threshold, 85% above it, states mirror the federal formula with their own bases and subtractions.
- The "tax on the last dollar" cliff: a raise at work can push SS inclusion from 0% to 25%+, the marginal rate on the raise is effectively double your bracket. The calculator shows the cliff week you model it.
- Working in retirement? Earnings count in provisional income, the same Social Security can become taxable at 85% when you add part-time pay.
Frequently asked
Do Montanas residents pay state tax on Social Security in 2026?
Social Security IS taxed, partially, with income thresholds.
What income makes Social Security taxable in Montana?
See the threshold detail above, the taxable slice depends on provisional income (your other income + half your benefits).
Is the 85% federal rule affected by my state?
No, the federal layer (up to 85% of benefits taxable at higher incomes) is national. MT adds its partial layer on top.