Many veterans expect a flat exemption at a 100% rating. Montana’s law works differently: it reduces the tax rate on a qualifying veteran’s home, and the size of the cut depends on income.
Here’s who qualifies, what it’s worth and how to apply.
How the MDV program works
Under MCA 15-6-311, the home of a qualified veteran is taxed at the normal residential rate multiplied by a percentage set by the owner’s income. The income limits rise each year with inflation and never go down1. The Department of Revenue runs the program, which it calls the Montana Disabled Veteran Assistance Program2.
| Household | 100% reduction | 80% | 70% | 50% |
|---|---|---|---|---|
| Single | $0–$49,654 | $49,655–$54,620 | $54,621–$59,584 | $59,585–$64,551 |
| Married or head of household | $0–$59,584 | $59,585–$64,551 | $64,552–$69,515 | $69,516–$74,482 |
| Unmarried surviving spouse | $0–$41,379 | $41,380–$46,344 | $46,345–$51,310 | $51,311–$56,276 |
Source: Montana Department of Revenue, MDV program2
Who qualifies, including edge cases
- The rating. A VA letter showing a current 100% rating for a service-connected disability, or payment at the 100% rate. That's how veterans paid at 100% because they can't work (TDIU) fit in3. See P&T and TDIU for property tax.
- Ownership and occupancy. You must own the home, or be buying it on a contract for deed, and live in it as your main home at least seven months a year2.
- Temporary ratings. If the rating isn't permanent, the department will ask for updated VA letters from time to time3.
- Married couples. Count your spouse's income even if they aren't on the deed2.
- Farms and timber land. Only the home and a one-acre homesite get the reduction2.
- Mobile homes. Qualify, and the form asks whether you own the land under it3.
Surviving spouse rules
An unmarried surviving spouse who owns and lives in the home qualifies if a VA letter shows the veteran was rated or paid at 100% for a service-connected disability at death, died on active duty or died from a service-connected disability13. The surviving spouse income limits are lower, topping out at $56,276 for tax year 20272. The spouse must stay unmarried; the form asks them to affirm it3.
What it's worth: an example
A married veteran in Lewis and Clark County, rated 100% service-connected, has a 2025 federal AGI of $52,000, including his spouse’s wages. That’s under $59,584, so the home’s tax rate is reduced by 100% for tax year 202721. If his AGI were $66,000, the cut would be 70%. VA disability pay isn’t part of federal AGI, which is why many 100% veterans land in the top tier.
Special district fees and assessments on the bill may still apply; ask your local Department of Revenue office what’s left.
How to apply
- Get your VA letter. Download a benefit summary letter showing the 100% rating; VA can't send your information to the state for you3. See the benefit summary letter.
- Fill out Form MDV. Online or on paper, and send it to your local Department of Revenue field office2.
- Add income records if needed. If you didn't file a Montana return for 2025, include your federal return (new residents) or Social Security and VA benefit statements3.
- Meet the April 15 deadline. Postmarked or hand-delivered. Late applications are considered for the following year2.
If you missed the deadline or just bought the home
A form filed after April 15 is used for the next tax year, so file as soon as you can after closing or after your rating arrives3. You report income once. After that, the department verifies eligibility each year and sends a status letter as long as you own and live in the home2. Questions: (406) 444-69003.
How MDV differs from Montana's senior relief
Montana’s Elderly Homeowner/Renter Credit is a separate, refundable income tax credit of up to $1,150 for people 62 or older with household income under $45,000 who lived in Montana at least nine months of the year. It’s claimed on Form 2 with Schedule 2EC6. Unlike MDV, it isn’t tied to military service and it covers renters, including the rent part of a care facility bill6.
Other Montana benefits for disabled veterans
- Hunting licenses. Veterans with certain combat-connected injuries may get half-price deer and antelope licenses; call Fish, Wildlife and Parks at (406) 444-29507.
- State veterans cemeteries. Low-cost burial at Fort Harrison, Miles City or Missoula, with free options for cremated remains7.
See disabled veteran property tax relief by state for how Montana compares.