Montana Veteran Benefits

Disabled Veteran Property Tax Exemption And Assistance Program

Montana Disabled Veteran Property Tax Exemptions in 2026

Written by: Levi Rodgers, Co-Founder & Army VeteranWritten by: Levi Rodgers, Army Veteran

Reviewed by: Kenneth Schwartz, Loan OfficerNMLS#1001095Reviewed: Kenneth Schwartz (NMLS 1001095)

Updated on April 17, 2026

Primary sources:
Montana Department of Revenue — Disabled Veteran Assistance Program

MCA §15-6-211 — Disabled Veterans’ Residences Exempt

Montana Military Benefits — MyArmyBenefits

Montana offers two property tax benefits for disabled veterans. Under MCA §15-6-211, 100% service-connected disabled veterans (or surviving spouses of veterans who died on active duty or from service-connected disability) qualify for a full property tax exemption on their primary residence. Montana also runs the Montana Disabled Veteran (MDV) Assistance Program, which provides a sliding-scale tax reduction of 50% to 100% based on income and marital status. On a $360,000 home near Malmstrom AFB at Montana’s average effective rate of 0.74%, the full exemption saves approximately $2,664 per year.

Next step:
Check Your VA Loan Eligibility

Full Exemption (§15-6-211)

100% service-connected disabled veterans: full property tax exemption on primary residence
Also covers surviving spouses of veterans who died on active duty or from service-connected disability
No income limit for the full exemption
File with your county assessor with VA rating documentation

MDV Assistance Program

Sliding-scale reduction: 50%, 70%, 80%, or 100% of taxes based on income
Available to veterans with service-connected disability at any percentage
Income thresholds updated annually for inflation
Apply by April 15 through the Montana Department of Revenue

Filing And Deadlines

Application deadline: April 15 of the tax year
File with your county assessor or Department of Revenue
Re-application may be required annually for the MDV program
Apply before April 15 to receive the benefit for the current tax year

VA Loan Impact

Full exemption saves approximately $2,664/year on a $360K home near Malmstrom AFB
$222/month savings adds roughly $27,000 in VA loan buying power
Combines with VA funding fee exemption for 100% P&T veterans
Tell your lender about the exemption during preapproval to maximize qualification

Frequently Asked Questions

Do 100% disabled veterans in Montana pay any property tax?

No. Under MCA §15-6-211, 100% service-connected disabled veterans are fully exempt from property taxes on their primary residence. This is a complete exemption — $0 taxes owed.

What is the MDV Assistance Program and who qualifies?

The Montana Disabled Veteran (MDV) Assistance Program is a separate income-based benefit that provides a 50% to 100% tax reduction. It is available to veterans with any service-connected disability rating, with the reduction percentage depending on income and marital status.

Where do I apply for Montana’s veteran property tax benefits?

File with your county assessor for the §15-6-211 exemption, or through the Montana Department of Revenue for the MDV Assistance Program. The deadline for both is April 15. Malmstrom AFB veterans file in Cascade County.

The Bottom Line Up Front

Montana provides a full property tax exemption for 100% service-connected disabled veterans under MCA §15-6-211, plus a separate sliding-scale reduction through the Montana Disabled Veteran (MDV) Assistance Program for veterans at any disability level. On a $360,000 home near Malmstrom AFB in Great Falls at Montana’s average effective rate of 0.74%, the full exemption saves approximately $2,664 per year — roughly $222 per month off your housing payment. The MDV program extends benefits to veterans with partial disability ratings based on income, making Montana’s overall veteran property tax benefit structure more inclusive than most states.

Montana’s two-track approach covers more veterans than states that only offer benefits at 100% disability. If you are 100% service-connected, the §15-6-211 exemption eliminates your entire tax bill with no income test. If you have a partial rating, the MDV program provides a meaningful reduction — potentially up to 100% of taxes depending on your income. The key limitation is Montana’s limited military presence. Malmstrom AFB near Great Falls is the only active-duty installation, so this benefit primarily helps veterans who choose Montana for retirement or relocation rather than those stationed there by the military.

What To Do Based On Your Situation

Buying in Montana within 90 days: Factor the exemption into your preapproval. With $0 property taxes, your monthly PITI drops by $222 on a $360K home — meaningful margin for DTI qualification.
Already own a home in Montana: If you have not applied, file with your county assessor or the Department of Revenue before April 15. Then request an escrow re-analysis from your servicer.
Partial disability rating: Apply for the MDV Assistance Program. Even a 50% tax reduction saves over $1,300 per year on a $360K home near Malmstrom AFB. Income thresholds are adjusted annually.

How Does Montana’s Benefit Structure Work?

Montana runs two separate programs that can provide significant property tax relief. The §15-6-211 exemption is the stronger benefit — a complete exemption for 100% disabled veterans. The MDV program fills the gap for partially disabled veterans with income-based reductions.

Benefit	Eligibility	How It Works	Annual Value on $360K Home at 0.74%
Full exemption (MCA §15-6-211)	100% service-connected disabled veteran	Complete property tax exemption on primary residence	$2,664
MDV — 100% reduction	Disabled veteran, lowest income tier	100% of property taxes eliminated	$2,664
MDV — 80% reduction	Disabled veteran, second income tier	80% reduction on property taxes	$2,131
MDV — 70% reduction	Disabled veteran, third income tier	70% reduction on property taxes	$1,865
MDV — 50% reduction	Disabled veteran, highest qualifying tier	50% reduction on property taxes	$1,332

Deal Math: A 100% P&T veteran buying a $360,000 home near Malmstrom AFB (Cascade County effective rate ~1.01%) normally owes approximately $3,636 in annual property taxes. The full exemption eliminates that bill entirely — saving $303 per month. Combined with the VA funding fee exemption (saving $7,740 upfront on a $360,000 loan at 2.15%), the total first-year benefit exceeds $11,376.

What Is The Exemption Worth In Real Dollars?

Montana’s effective property tax rate averages approximately 0.74% statewide, though Cascade County (Great Falls/Malmstrom AFB) runs higher at roughly 1.01%. The full exemption eliminates the entire bill regardless of rate, making it more valuable in higher-rate counties.

Home Value	Effective Tax Rate	Annual Tax Without Exemption	Annual Tax With Full Exemption	Monthly Savings
$250,000	0.74%	$1,850	$0	$154
$360,000	1.01%	$3,636	$0	$303
$450,000	0.83%	$3,735	$0	$311
$550,000	0.83%	$4,565	$0	$380

Home Search Impact: On a $360,000 home near Great Falls, eliminating $303/month in property taxes translates to approximately $35,000 to $40,000 in additional VA loan buying power at current rates. Montana’s housing remains affordable compared to coastal states — the $360,000 median near Malmstrom gets you a 3-bedroom home with acreage in many areas.

How Does This Affect Your VA Loan Qualification?

The property tax exemption directly eliminates the tax escrow from your monthly PITI. In Montana’s affordable housing market, this can meaningfully shift your qualification math and provide margin on DTI calculations.

PITI impact: On a $360,000 home at 6.5% with $0 down, the full exemption reduces your monthly escrow by approximately $303. That drops your PITI from roughly $2,580 to $2,277.
DTI improvement: At $6,000/month gross income, the $303 reduction drops your housing DTI from 43% to 38%. That is a significant shift — potentially the difference between an AUS approval and a refer.
Buying power shift: The $303 monthly savings supports an additional $35,000 to $40,000 in purchase price at 6.5%. Combined with Montana’s affordable prices, this gives disabled veterans substantial purchasing capacity.
Escrow adjustment: If you close before the exemption is approved, your lender will initially escrow for the full tax amount. Once the county applies the exemption, request an escrow re-analysis to lower your monthly payment.

Next step:
See What You Qualify For With Montana’s Veteran Tax Exemption

Who Qualifies For Montana’s Veteran Exemptions?

Montana’s two programs have different eligibility requirements. The full exemption under §15-6-211 requires 100% service-connected disability with no income test. The MDV program is broader — any service-connected disability percentage qualifies, but the reduction amount depends on income and marital status.

For the §15-6-211 exemption, you must be a Montana resident who owns and occupies the home as your primary residence. The VA must have determined you to be 100% disabled due to service-connected injury or illness. Surviving spouses of veterans who died on active duty or from service-connected disability also qualify, provided they remain in the home and are unmarried.

For the MDV Assistance Program, any veteran with a service-connected disability rating may apply. The reduction percentage (50%, 70%, 80%, or 100%) depends on your household income relative to thresholds that are updated annually for inflation. The program applies to your primary residence only.

How Do You Apply For Montana’s Benefits?

Application is through either your county assessor (for the §15-6-211 exemption) or the Montana Department of Revenue (for the MDV program). The deadline for both programs is April 15 of the tax year.

Required documentation includes your VA disability rating letter, proof of Montana residency, proof of homeownership, and income documentation for the MDV program. Veterans near Malmstrom AFB file with the Cascade County Assessor’s office in Great Falls.

The MDV program requires annual re-application since it is income-based. The §15-6-211 exemption may be a one-time application if your disability is permanent and total — confirm with your county assessor whether annual renewal is required.

Where Do Veterans File In Montana?

Montana’s limited military presence means most veteran homebuyers are choosing Montana for retirement or relocation. Malmstrom AFB in Great Falls is the only active-duty installation. Here is where to file based on common veteran locations.

Location	County	Effective Rate	Annual Savings (Median Home)	Median Home Price
Malmstrom AFB (Great Falls)	Cascade	1.01%	$3,636	$360,000
Billings	Yellowstone	0.83%	$3,320	$400,000
Missoula	Missoula	0.78%	$3,510	$450,000
Helena	Lewis and Clark	0.80%	$2,800	$350,000

Process Watchpoint: Montana’s property tax system uses a unique assessment method. Residential property is taxed at 1.35% of market value (the taxable value), and then the local mill levy is applied to that taxable value. The effective rate you see on your bill is the combination of both. When applying for the veteran exemption, the exemption applies to the final tax amount — you do not need to understand the assessment formula to benefit.

Do Surviving Spouses Keep The Benefit?

Montana’s §15-6-211 exemption extends to surviving spouses of veterans who died while on active duty or as a result of a service-connected disability. The surviving spouse must own and occupy the home, be unmarried, and have documentation from the VA confirming the veteran’s 100% disability rating at the time of death or that the death was service-connected.

For the MDV Assistance Program, surviving spouse eligibility depends on the specific program rules. Contact the Montana Department of Revenue for current surviving spouse provisions under the MDV program.

How Does The Exemption Change Your VA Loan Math?

Montana’s full exemption eliminates property taxes entirely, providing substantial monthly savings that improve VA loan qualification. In the affordable Great Falls market, the combination of low home prices and $0 taxes creates strong buying power for disabled veterans.

Example — Malmstrom AFB area: $360,000 purchase, 6.5% rate, $0 down, 1.01% effective tax rate. Without exemption: $2,580/month PITI. With exemption: $2,277/month. The $303/month difference at $6,000 gross monthly income moves your housing DTI from 43% to 38%.
Funding fee interaction: 100% P&T veterans are also exempt from the VA funding fee, saving $7,740 on a $360,000 loan. Combined annual benefit: $7,740 upfront + $3,636 annual tax savings = $11,376 in year one.
MDV program note: Veterans with partial disability can still receive 50% to 100% of their property taxes eliminated through the MDV program. On a $360,000 home, even the 50% reduction saves $1,818 per year — $152 per month in lower escrow.

Next step:
Check Your VA Loan Eligibility

The Bottom Line

Montana offers a full property tax exemption for 100% service-connected disabled veterans under MCA §15-6-211, plus the income-based MDV Assistance Program for veterans at any disability level. On a $360,000 home near Malmstrom AFB, the full exemption saves approximately $3,636 per year — $303 per month. The MDV program extends benefits to partially disabled veterans with reductions of 50% to 100% based on income. Apply with your county assessor or the Montana Department of Revenue by April 15. Surviving spouses of veterans who died on active duty or from service-connected disability also qualify for the full exemption.

Frequently Asked Questions

Does Montana fully exempt 100% disabled veterans from property tax?

Yes. Under MCA §15-6-211, veterans with 100% service-connected disability are fully exempt from property taxes on their primary residence. There is no income limit for this exemption.

Do partially disabled veterans qualify for any Montana property tax benefit?

Yes. The Montana Disabled Veteran (MDV) Assistance Program provides a 50% to 100% property tax reduction for veterans with any service-connected disability rating. The reduction percentage depends on income and marital status.

What income thresholds apply to the MDV program?

The MDV income thresholds are updated annually for inflation. The program uses a tiered system with four reduction levels — 100%, 80%, 70%, and 50% — based on household income. Contact the Montana Department of Revenue for the current year’s thresholds.

Does TDIU qualify for the full Montana exemption?

If the VA has rated you at 100% disabled due to service-connected conditions, you generally qualify. TDIU at the 100% compensation rate typically meets the eligibility standard under §15-6-211. Confirm with your county assessor.

Do I need to re-apply every year?

The §15-6-211 exemption may not require annual re-application if your disability is permanent and total — check with your county assessor. The MDV Assistance Program is income-based and generally requires annual re-application.

Can I combine the property tax benefit with the VA funding fee waiver?

Yes. The VA funding fee exemption and Montana’s property tax exemption are separate benefits. A 100% P&T veteran receives both — the upfront funding fee waiver and the ongoing property tax elimination.

How does Montana’s property tax system work?

Montana taxes residential property at 1.35% of market value to determine the taxable value, then applies local mill levies. The veteran exemption eliminates the final tax bill — you do not need to understand the assessment formula.

Can I get the exemption on a second home or rental property?

No. Both the §15-6-211 exemption and the MDV program apply only to your primary residence. Investment properties, second homes, and rental properties do not qualify.

Will my lender adjust my escrow after the exemption is approved?

Not automatically. Once the exemption appears on your tax bill, request an escrow re-analysis from your lender. Your monthly payment will decrease and any overage will be refunded.

How does Montana compare to other states for veteran property tax benefits?

Montana ranks well nationally. The full exemption for 100% disabled veterans is among the strongest benefits, and the MDV program extends relief to partially disabled veterans — something many states do not offer. The affordable housing market makes the benefit even more impactful.

What about Montana’s general homestead exemption?

Montana does not have a traditional homestead exemption like many states. The veteran programs under §15-6-211 and the MDV program are the primary property tax relief mechanisms for disabled veterans.

What happens if my disability rating changes?

If your rating drops below 100%, you lose the §15-6-211 full exemption but may still qualify for the MDV program at a reduced level. If your rating increases to 100%, apply for the full exemption by April 15.