HB652

Montana HB652 exempts military pensions, retirement, and survivor benefits from state income tax.

Montana HB652 revises state income taxation to exempt military pensions, retirement, and survivor benefits from taxation. This includes pensions and retirement income from the U.S. armed forces, Montana Army National Guard, Montana Air National Guard, and reserve components. Survivor benefits for military service are also exempt. The bill amends definitions and provisions in the Montana Code Annotated, repeals certain sections, and sets an effective date of January 1, 2026, applying to tax years beginning after December 31, 2025.