MT SB93

Expands Montana's military pension/retirement income tax exemption to include residents who were living in the state before receiving military retirement benefits and remained residents afterward, in addition to those who became residents on or after June 30, 2023

Eliminates the previous 5-year limit on claiming the military pension tax exemption, allowing eligible recipients to claim it indefinitely

Removes the December 31, 2033 sunset date that would have terminated the military pension exemption provisions

Exemption amount equals the lesser of Montana source wage income or 50% of military pension/retirement income; survivor benefits remain eligible for up to 50% exemption

Effective January 1, 2026, applying to tax years beginning after December 31, 2025