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Bill

LC 2310

Eliminate Montana state income tax on social security retirement benefits

2025 Regular Session

Montana bill would exempt Social Security retirement benefits from state income tax, reducing revenue while providing tax relief to retirees.

(LC) Draft Died in Process
#taxation--individualincome #retirement
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WeVote Research Nonpartisan
Bill Summary · LC 2310

Legislative bill overview

This bill would eliminate Montana's state income tax on Social Security retirement benefits for eligible retirees. Currently, Montana taxes Social Security income as part of its state income tax system, making it one of only 13 states that does so. The bill aims to provide tax relief specifically to retirees receiving Social Security benefits.

Why is this important

Social Security recipients in Montana could see meaningful tax savings, potentially affecting thousands of retirees on fixed incomes. This change would impact state revenue and could influence Montana's competitiveness in attracting and retaining retirees compared to neighboring states with no Social Security taxation.

Potential points of contention

  • State revenue impact: Eliminating this tax source would reduce Montana's general fund revenue, requiring either budget cuts or alternative revenue sources
  • Equity concerns: The benefit primarily helps retirees with Social Security income while potentially shifting tax burdens to workers or other taxpayers
  • Partial vs. universal benefit: Unclear whether the exemption applies to all Social Security recipients or only those meeting certain income thresholds, affecting who benefits most

Compiled from official sources — confirm details with the bill’s official record.

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