Montana Military Pay Exemption for Active-Duty Service Members 

The following military pay can be excluded from Montana Income tax: 

• Base pay, special pay and incentive pay received by Service members serving on active duty in the U.S. Armed Forces 

• Pay received by National Guard and Reserve Service members serving on active duty in support of a Contingency Operation or for Homeland Defense 
• Combat zones pay: 

• Officers in the U.S. Armed Forces that did not receive a complete tax exemption from the federal government for combat pay can exclude additional combat zone pay 
• Pay received by hospitalized Service members because of service in a combat zone. 

Service members claiming this exemption must provide verification of their military status, such as a copy of their military orders with their income tax return. 

Montana Servicemembers’ Group Life Insurance (SGLI) Premium Reimbursement 

Reserve component Service members serving on active duty in the U.S. Armed Forces in support of Contingency Operations can receive a reimbursement for SGLI premiums paid when they file their Montana Taxes. The maximum reimbursement they can receive is $17.50 per month for each month they serve on active duty in a Contingency Operation. 

Montana Military Retired Pay Income Taxes 

Montana taxes all pension, annuities, and retirement income if it is taxable on the federal return. Montana does offer a partial exemption for those eligible. 

Montana Taxes on U.S. Department of Veterans Affairs Military Disability Retirement Pay 

Military Disability Retirement Pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service in the U.S. Armed Forces should not be included in taxable income. Some of the payments which are considered disability benefits include: 

• Disability compensation and pension payments for disabilities paid to Veterans or their Families 
• Grants for homes designed for wheelchair living 
• Grants for motor vehicles for Veterans who lost their sight or the use of limbs, or 

• Benefits under a dependent-care assistance program. 

Montana State Taxes on U.S. Department of Veterans Affairs Disability Dependency and Indemnity Compensation (DIC) 

DIC is a tax-free monetary benefit paid to eligible survivors of military Service members who died in the line of duty or eligible survivors of Veterans whose death resulted from a service-related injury or disease. 

Military Survivor Benefit Plan (SBP)/ Reserve Component Survivor Benefit Plan (RCSBP)/ Retired Serviceman’s Family Protection Plan (RSFPP) Montana State Tax Benefits 

Montana taxes all pension, annuities, and retirement income if it is taxable on the federal return. Montana does offer a partial exemption for those eligible. 

Montana Disabled Veteran Assistance Program (MDV), Property Tax Reduction 

MDV reduces the property tax rate on the homes of disabled Veterans or their unmarried Surviving Spouse. 

For homes on agricultural or forest land, the benefit applies to the home and the one-acre homes site. 

Depending on the marital status and income of the homeowner, the tax rate is reduced by 100%, 80%, 70% or 50% of the normal tax rate. The income ranges are updated each year for inflation. 

Montana Veterans’ Clubhouse Tax Exemption – Incompetent Veterans’ Trusts 

Property owned by a Veteran’s organization that is used primarily for educational, fraternal, benevolent, or purely public charitable purposes rather than for gain or profit, and any personal property used in the building, is exempt from taxes. 

All property, real or personal, under the control of a legal guardian for an incompetent U.S. Armed Forces Veteran or minor dependents of a Veteran, is exempt from all taxes. To be considered eligible for a tax exemption the property must have been paid for with funds received from the U.S. Government as a pension, compensation, insurance, adjusted compensation, or gratuity. 

Montana National Guard and Reserve Service Members Can Deduct Travel Expenses from their Income Tax 

Montana National Guard and Reserve Service members can deduct travel expenses if they are required to travel more than 100 miles for military duty. 

This deduction is taken on Schedule 1, Line 11 of the federal Form 1040 and on Schedule 1, Line 11 of the Montana Form 2. Service members must include a copy of your federal Form 2106 or 2106-EZ with their return to claim this deduction. 

Montana Board of Regents of Higher Education Tuition Waivers for Service Members, Veterans and War Orphans 

The Montana Board of Regents of Higher Education offers tuition waivers for Veterans, National Guard Service members and war orphans at campuses of the Montana University System. Waivers only apply toward tuition and does not apply to any required fees. 

Students are eligible for continuation of a waiver, from year to year, unless otherwise limited and provided they make satisfactory academic progress according to their campus. No combination of waivers/discounts can exceed the total tuition charged by the campus. 

Montana War Orphans Tuition Waiver 

Children aged 25 or younger, of a Service member that served on active duty in the U.S. Armed Forces and was killed in action or died because of a combat related injury, disease, or other disability are eligible for a tuition waiver. The Service member must have been a Montana resident at the time of entry into the U.S. Armed Forces and served during World War II, Korea, Vietnam, Iraq or Afghanistan conflicts. This waiver can be used up to a bachelor’s degree and cannot be used with other tuition waivers 

Montana Honorably Discharged Veteran Tuition Waiver 

The Montana Honorably Discharged Veterans Waiver offer tuition waivers to eligible resident wartime Veterans. Veterans that served during the Vietnam era and before are eligible for a waiver for undergraduate and graduate degrees. Veterans that served after the Vietnam era are only eligible for a waiver up to their first certificate, associate’s, or bachelor’s degrees. 

Surviving Dependents of Montana National Guard Service Member Tuition Waiver 

The Surviving Spouse or Child of any Montana National Guard Service member who was killed due of injury, disease, or other disability they received in the line of duty while serving on state active duty are eligible for a tuition waiver at campuses of the Montana University System. Students are not eligible for this waiver if they have comparable educational financial assistance from any government or private benefit program. For more information contact the financial aid office at the campus they plan to attend. 

Grateful Nation Montana, Financial and Educational Assistance 

Grateful Nation Montana helps the Children of Service members killed while serving in Iraq or Afghanistan to find and use the financial and non-monetary support they are eligible for to succeed in college. 

Participating colleges and universities provide student tutoring and mentoring to eligible students during their high school years so that these students are academically and emotionally prepared to succeed in college 

Montana Interstate Compact on Educational Opportunity for Military Children (MIC3) 

The purpose of this compact is to remove barriers to educational success imposed on Children of military Families because of frequent moves and deployment of their parents by: 

• Facilitating the prompt enrollment of Children of military Families and ensuring that they are not placed at a disadvantage due to difficulty in the transfer of educational records from the previous school district or variations in entrance or age requirements 

• Facilitating the student placement process through which Children of military Families are not disadvantaged by variations in attendance requirements, scheduling, sequencing, grading, course content or assessment. Facilitating the qualification and eligibility for enrollment, educational programs, and participation in extracurricular academic, athletic and social activities 
• Facilitating the on-time graduation of Children of military Families 
• Providing for the enforcement of administrative rules implementing the provisions of this compact 
• Providing for the uniform collection and sharing of information between and among member states, schools, and military Families under this compact 
• Promoting coordination between these compact and other compacts affecting military Children 

• Promoting flexibility and cooperation between the educational system, parents, and the student to achieve educational success for the student. 

Purple Star School Designation for Montana Military-Friendly Schools 

The Montana Purple Star School Designation for military-friendly schools recognizes schools that show a major commitment to students and Families connected to the U.S. Armed Forces. Schools that earn the award will receive a special Purple Star recognition to display on site. 

For a school to qualify for the Purple Star Designation they must appoint a school liaison that is specially trained to handle the unique challenges experienced by military Families. This liaison will ensure that other teachers at their school are aware of special considerations that students from military Families can benefit from. Each school will also have a dedicated page on their school website featuring resources for military Families. 

Montana Veterans’ Employment Preference Policy 

Montana offers Veterans’ Employment Preference when hiring for public employment. Preference can be granted by adding points to scored hiring processes or by guaranteeing an interview. 

When a public employer uses a scored procedure, an eligible applicant will have the following percentage points of the total possible points added to the scored procedure: 

• 5 percentage points if the applicant is a Veteran 
• 10 percentage points if the applicant is a disabled Veteran or an eligible relative. 

When a public employer uses a selection procedure other than a scored procedure, they will give preference to a disabled Veteran, disabled applicant, a Veteran, an eligible Family member in that order, over an applicant that is not eligible for preference and has equal qualifications. This preference may include a guaranteed job interview for those eligible. 

Montana Veteran Hiring Preference for Private Employers 

Montana private sector employer may adopt an employment policy that gives preference in hiring to a Veteran. A private sector employer includes for-profit and not-for-profit employers 

Paid Military Leave for Montana Public Employees 

Montana State employees that are members of a reserve component of the U.S. Armed Forces are eligible for 120 hours of paid military leave per year and can rollover unused military for a total of 240 hours. Military leave can be used for state or federal active duty and for any federally funded training. 

Federal Employment Veteran’s Hiring Preferences 

By Federal law, Veterans who are disabled or who served on active duty in the U.S. Armed Forces during certain specified time periods or in military campaigns are entitled to preference over non-Veterans in hiring into the Federal civil service and in retention during reduction in force. Veterans may be entitled to 5 or 10 points included in any scoring process for examination or interviews. 

Uniformed Services Employment and Reemployment Rights Act (USERRA) 

USERRA protects civilian job rights and benefits for Veterans and members of reserve components. USERRA also protects Service member rights and benefits by clarifying the law, improving enforcement mechanisms, and adding Federal Government employees to those employees already eligible to receive Department of Labor assistance in processing claims. 

Absence from Work for Military Duty 

USERRA establishes the cumulative length of time that an individual may be absent from work for military duty and retain reemployment rights to five years. Exceptions to the five-year limit, include initial enlistments lasting more than five years, periodic National Guard and Reserve training duty, and involuntary active-duty extensions and recalls, especially during a time of national emergency. USERRA establishes that reemployment protection does not depend on the timing, frequency, duration, or nature of an individual’s service if the basic eligibility criteria are met 

Disability Accommodation 

 USERRA provides protection for disabled Veterans, requiring employers to make reasonable efforts to accommodate the disability. Service members recovering from injuries received during service or training may have up to two years from the date of completion of service to return to their jobs or apply for reemployment. 

Return to Work without Loss of Seniority 

USERRA provides that returning Service members are reemployed in the job that they would have attained had they not been absent for military service, with the same seniority, status and pay, as well as other rights and benefits determined by seniority. USERRA also requires that reasonable efforts (such as training or retraining) be made to enable returning Service members to refresh or upgrade their skills to help them qualify for reemployment. USERRA also provides that while an individual is performing military service, they are deemed to be on a furlough or leave of absence and are entitled to the non-seniority rights accorded other individuals on non-military leaves of absence. 

Extension of Health and Pension Plans 

Health and pension plan coverage for Service members is provided for by USERRA. Individuals performing military duty of more than 30 days may elect to continue employer sponsored health care for up to 24 months; however, they may be required to pay up to 102% of the full premium. For military service of less than 31 days, health care coverage is provided as if the Service member had remained employed. USERRA clarifies pension plan coverage by making explicit that all pension plans are protected. 

Montana Unemployment Insurance (UI) 

UI provides temporary financial assistance for workers that are unemployed through no fault of their own. UI is a partial, short-term replacement of lost wages while workers are seeking other work and is not intended to be a permanent source of income. Employers pay all costs of the UI program. 

To be eligible for UI applicants must be: 

• Physically and mentally able to work 
• Available for work 
• Actively seeking work 

Veteran Designation on Montana Driver Licenses and ID Cards 

Veterans that received an honorable discharge from the U.S. Armed Forces are eligible to have a Veteran designation on their Montana driver License or ID card. 

Veterans are required to provide a copy of one of the following documents to prove eligibility: 

• DD214 or discharge paperwork indicating they received an honorable discharge 
• Veteran ID card 
• VA health Card 
• Letter of certification from the Montana Veterans Affairs Division. 

Cost to add a Veteran designation: 

• Driver License (not REAL ID compliant) – $10.30 
• REAL ID compliant Driver License – $36.05 
• ID Card (not REAL ID compliant) – $16.48 ($8.24 if under 21) 
• REAL ID compliant ID card = $42.23 ($33.99 if under 21) 

Montana Vehicle Registration Fee and Cemetery Fee Waivers for Veterans, Service Members and Surviving Spouses 

Montana Motor vehicle registration fees and, in some cases, the Veterans cemetery fee, may be waived for eligible Veterans, Service members and Surviving Spouses who purchase military or Veteran license plates 

Montana Military and Veteran License Plates 

Montana offers 24 distinctive license plate designs to honor the service and sacrifice of eligible Service members, Veterans, retired Service members, and certain Family members. Specific eligibility and documentation requirements will apply 

Montana Disabled Veteran License Plate 

The Montana Disabled Veteran license plate is offered to eligible disabled Veterans. Disabled Veterans may be issued up to two sets of this license plate for their vehicles. These license plates authorize disabled parking privileges. This license plate cannot be transferred to a Surviving Spouse. 

Montana Gold Star Family License Plate 

The Montana Gold Star Family license plate is offered to eligible Family members of a Service member in the U.S. Armed Forces who is killed in armed conflict 

Montana Purple Heart License Plate 

Service members or honorably discharged Veterans that receive the Purple Heart are eligible for the Montana Purple Heart license plate. Applicants will be required to provide a copy of the DD214, medal certificate, or official orders as proof of eligibility. 

Military Vehicle Registration for Montana Resident Service Members Stationed Outside Montana Reduced Fees 

 A Montana resident who entered active duty in the U.S. Armed Forces from Montana, including a National Guard or Reserve Service members, and who is stationed outside Montana, may register a motor vehicle, trailer, semi-trailer or pole trailer without paying certain light vehicle registration fees, fees in lieu of property tax, and county option taxes as otherwise required.  

Montana License Expiration Exemption for Active-Duty Service Members  

Active-duty Service members may apply for a military driver license expiration exemption. This exemption authorizes a Service members driver license to remain valid up to 90 days after receiving an honorable discharge. 

Exemptions are indicated by having a 90 – day exemption notice printed on the back of the license or Service members may have “9999” printed on the front of their license in place of an expiration date. 

Montana Motorcycle Endorsement for Active Duty Service Members Stationed Outside Montana 

Active duty Service members stationed outside of Montana who complete a Motorcycle Safety Foundation Basic Rider Course may apply to have a motorcycle endorsement added to their Montana driver license without completing a road skills test at a Montana exam station 

Montana Military Waiver for a Commercial Driver License (CDL) 

Montana offers CDL testing waivers for Service members and former Service members based on their military training and experience. This waiver allows a qualified Service member to apply for a CDL without taking skills or knowledge tests. Service members cannot transfer school bus or passenger endorsements. 

Montana National Guard Death Benefit when Incurred on State Active Duty 

The beneficiaries of a Montana National Guard Service member that dies in the line of duty while serving on state active duty are eligible for a $50,000 death benefit from the state. 

U.S. Department of Veterans Affairs Life Insurance 

The VA provides valuable life insurance benefits to Veterans, active and reserve component Service members and their Families to provide financial security given the extraordinary risks involved in military Service. The VA provides the following life insurance benefit programs: 

• Servicemembers’ Group Life Insurance (SGLI) 
• Veterans’ Group Life Insurance (VGLI) 
• Family Servicemembers’ Group Life Insurance (FSGLI) 
• Servicemembers’ Group Life Insurance Traumatic Injury Protection Program (TSGLI) 
• Service-Disabled Veterans’ Life Insurance (S-DVI) 

• Veterans’ Mortgage Life Insurance (VMLI). 

TRICARE Reserve Select Health Insurance 

Available worldwide for Selected Reserve, (Reserve and National Guard) members and their Families who meet the following qualifications: 

• Not on active duty orders 
• Not covered under the Transitional Assistance Management Program 

• Not eligible for or enrolled in the Federal Employees Health Benefits (FEHB) program or currently covered under FEHB, either under their own eligibility or through a Family member. 

The plan provides comprehensive health care coverage when a Service member is not activated and covered by active duty TRICARE benefits. 

Discounted Montana Department of Fish, Wildlife and Parks Licenses for Combat Disabled Veterans 

A disabled Veteran or a disabled Service member in the U.S. Armed Forces that has a permanent, substantial combat-connected disability that causes a significant impairment of their functional ability may purchase certain elk in a field tags or licenses for half price. 

Eligible applicants can purchase the following for half price: 

Class A-3 deer A tag 

Class A-4 deer B tag 

Class B-7 deer A tag 

Class B-8 deer B tag 

Special antelope license. 

Free Montana Conservation License for Reserve Component Service Members 

Montana resident Service members in the Montana National Guard or the U.S. Armed Forces Reserves who are ordered to active duty in support of a contingency operation that required them to serve at least two months outside Montana are eligible for a free resident wildlife conservation license, a Class A resident fishing license or a Class AAA resident combination sports license, (does not include a Class A-6 black bear tag) for five years. 

Service members are eligible in the license year that they return from active duty or in the year following their return, and for the next four years. Applicants must still pay the resident base hunting license fee and purchase the resident aquatic invasive species prevention pass. 

To be eligible for the free licenses, Service members must provide proof of residency, and their DD214 verifying their release or discharge from active duty. The applicant is responsible for providing this documentation to any regional department office or to the department headquarters in Helena, by mail or in person. For more information, please contact the Montana Department of Fish, Wildlife and Parks. 

Montana Hunting and Fishing Benefits for Purple Heart Awardees 

A Montana resident Purple Heart recipient or a nonresident who is a member of the Legion of Valor are eligible to fish and hunt game birds, (not including wild turkeys) with the purchase of a wildlife conservation license and a resident aquatic invasive species prevention pass. Other licenses are not required. 

Nonresident Purple Heart recipients are eligible for the same benefits above but must do so during expeditions arranged by a nonprofit organization that uses fishing and hunting as part of a rehabilitation program for disabled Veterans. For more information, please contact the Montana Department of Fish, Wildlife and Parks. 

Montana Fishing Benefits for Veterans in U.S. Department of Veterans Affairs Hospitals 

Veterans that are patients in any VA Hospital may fish without a license in Montana. The Veteran must carry documentation signed by the VA hospital staff indicating they are currently a patient instead of a license. For more information, please contact the Montana Department of Fish, Wildlife and Parks. 

Donated Montana Hunting Licenses for Disabled Service Members and Veterans 

 Montana residents may donate their hunting license to be reissued to a disabled Veteran or disabled Service member for use on a hunting expedition arranged by a nonprofit organization that uses hunting as part of their rehabilitation services. 

Those eligible for donated licenses are: 

• Purple Heart recipients 
• Veterans that were medically retired as the result of wounds or injuries received in a combat and have a 70% or greater disability rating by the VA or a branch of the U.S. Armed Forces 

• Service member on active duty while receiving medical treatment at a medical facility 
• Is not required to be a Montana resident 
• Does require a wildlife conservation license. 

Nonresident Service Members and Dependents Stationed in Montana May Purchase Hunting, Fishing and Trapping Licenses at Resident Rates 

Active duty, nonresident Service members and their dependents that are stationed in Montana are eligible to purchase hunting, fishing, and trapping licenses at resident prices. Applicants must be assigned in Montana for at least 30 days before they are eligible. 

Montana State Parks Camping Discount for Veterans 

Montana resident Veterans receive a discount of 50% off camping fees (does not apply to electrical fees) at Montana State Parks. Proof of eligibility to receive the discount includes a DD214, VA ID card or a Montana driver license with a Veteran designation. 

Montana Military Family Relief Fund (MMFRF) 

 MMFRF provides monetary grants to Families of Montana National Guard and Reserve Service members who are on Federal active duty in support of a contingency operation on or after April 28, 2007. 

MMFRF grants are intended to help Montana Families pay for the costs of food, housing, utilities, medical services, and other expenses that become difficult to afford when a wage-earner has temporarily left civilian employment to be placed on active duty. 

Status-Based Grant: 

The status-based grant offers a flat fee of $250 for each eligible dependent to help offset and pay costs related to a deployment. 

To be eligible for a status-based grant the recipient must meet the following requirements: 

• Family member of a resident Montana National Guard or a Reserve Service member serving on federal active duty in support of a contingency operation for at least 30 consecutive days 
• Service members pay grade is no higher than O-3 or W-3 at the time of application 
• Family member is enrolled in the Defense Enrollment Eligibility Reporting System (DEERS) as a dependent 

Need-Based Grant 

The need-based grant helps Families who experience a decrease in household income or a financial hardship during a deployment. If the Service member’s military income is at least 30% less than their civilian income or a Family has an unexpected or emergency expense MMFRF can provide a grant of up to $2,000. 

To be eligible for a need-based grant the recipient must meet the following requirements: 

• Meet all requirements for a status-based grant 

• Provide proof that the Service member’s monthly military pay and allowances, combined, are at least 30% less than their monthly civilian wages or income, or 
• Provide proof that the Service member or a Family member is experiencing a significant emergency that warrants financial assistance 

Casualty-Based Grant 

The casualty-based grant offers $2,000 to help offset expenses of a Service member who is injured during a contingency operation. The injury must have been sustained during or related to combat. 

To be eligible for a casualty-based grant the recipient must meet the following requirements: 

• Resident Montana National Guard or a Reserve Service member serving on federal active duty in support of a contingency operation for at least 30 consecutive days 
• Service member suffers a nonfatal injury during or related to combat as a direct result of hostile action 

Montana State Veterans’ Homes 

Montana has three Veterans’ homes that offer affordable long-term care to aged and disabled Veterans as well as their eligible Spouses. 

Montana State Veterans Cemeteries 

Montana has three State Veterans Cemeteries that offer a dignified final resting place for Veterans and their eligible Family members. 

Compensation for Enlisted Montana National Guard Service Members ordered to State Active Duty 

Montana National Guard Enlisted Service members ordered to state active duty will receive twice their base pay for the first 15 days of state active duty. 

Montana Honor and Remember Medallion 

The Montana Honor and Remember Medallion may be awarded to the Family members of a Service member that was killed or listed as missing in action during a period of armed conflict. 

U.S. Department of Veterans Affairs Facilities in Montana 

The VA has numerous resources available for Veterans and Family members. Please see the local location listing for your nearest facility.