HELENA, Mont. – Seniors living in Montana can take advantage of federal tax benefits designed to reduce their taxable income in 2025, including an Extra Standard Deduction for individuals aged 65 and older. While Montana does not offer its own senior-specific deduction, older residents can still access meaningful savings through federal provisions.
Extra Standard Deduction for Seniors in Montana
The standard deduction is a fixed amount that reduces the taxable income of individuals who don’t itemize. Seniors aged 65 and over receive an additional amount on top of this, acknowledging increased medical expenses and limited income sources in retirement.
For the 2024 tax year (filed in 2025), the federal extra standard deduction is:
- $1,950 for single filers and heads of household
- $1,550 for married filers when one spouse is 65 or older
- $3,100 total if both spouses are 65+ and file jointly
No State-Specific Extra Deduction in Montana
Montana does not provide an additional standard deduction for seniors at the state level. Instead, residents rely entirely on federal deductions when preparing both federal and state returns.
However, Montana does offer limited exemptions on Social Security income, depending on income level. Lower-income seniors may qualify for partial or full exemption of their Social Security benefits, easing their overall tax liability.
Eligibility Requirements
To qualify for the federal extra deduction:
- You must be 65 years or older by the end of the tax year.
- You must file as single, married filing jointly, or head of household.
- You must opt for the standard deduction instead of itemizing.
- An additional deduction may apply if you are legally blind.
How It Works in Practice
Take the example of a 67-year-old single taxpayer in Montana:
- Base standard deduction: $14,600
- Senior bonus: $1,950
- Total deduction: $16,550
This additional deduction reduces taxable income by nearly $2,000—significantly lowering the tax owed.
Why It Matters for Montana Retirees
For seniors on fixed incomes, even small tax breaks can make a big difference. The federal extra deduction helps:
- Lower total tax liability
- Offset rising healthcare and housing costs
- Preserve more funds for essentials and savings
Comparing Montana to Other States
- Montana does tax Social Security in some cases, unlike Florida and Texas, which have no state income tax at all.
- States like Delaware and Hawaii provide additional state-level deductions for seniors, beyond the federal benefit.
- Montana seniors rely on federal deductions and select income exemptions to lower their overall tax burden.
Final Thoughts
Montana may not offer a separate senior deduction, but residents aged 65 and older can still benefit significantly from federal tax relief. Seniors should review their income sources, stay informed about exemptions, and consider consulting a tax professional to ensure they’re claiming every deduction available.
Are you filing taxes in Montana this year? Drop your questions or tips in the comments below to help others prepare for the 2025 season.
