Montana State Taxes
Quick Tax Facts
Income Tax: 1% – 6.75%
State Sales Tax: 0%
Median Property Tax: $1,465
Overview
Montana, home to the hit TV show Yellowstone, has seen explosive growth since the start of the pandemic. People are drawn to its natural beauty and tax-friendly status. There is no state or local sales tax on general use items, and the state is moving to a two-tier income tax rate starting in 2024. Although property taxes are average compared to other states, housing prices have jumped dramatically in the last few years as wealthy people move to the state seeking the “John Dutton” lifestyle.
Montana Income Tax
Montana uses a progressive income tax rate structure that increases with income. All taxpayers use the same rate schedule regardless of their filing status. The state tax rates currently range between 1% and 6.75%.
| 2023 Montana Individual Income Tax Rates |
|---|
| If your taxable income is more than: | But not more than: | Your tax rate is: | Minus: |
|---|---|---|---|
| $0 | $3,600 | 1% | $0 |
| $3,600 | $6,300 | 2% | $36 |
| $6,300 | $9,700 | 3% | $99 |
| $9,700 | $13,000 | 4% | $196 |
| $13,000 | $16,800 | 5% | $326 |
| $16,800 | $21,600 | 6% | $494 |
| $21,600 | 6.75% | $656 |
Starting in 2024, the tax structure will change to just two tax rates: 4.7% and 6.5%. The lower rate (4.7%) applies to single filers with less than $20,500 or married filers with less than $41,000 in taxable income. Individuals with income over $20,500 or married couples earning more than $41,000 will be taxed at a higher rate (6.5%).
Who Must File?
Full-year and part-year residents, as well as non-residents with Montana source income, who have federal gross income that meets the Montana filing threshold, must file a state income tax return (Form 2). Unemployment compensation is excluded.
| Montana Filing Thresholds |
|---|
| Filing Status | Under 65 | 65+ |
|---|---|---|
| Single or Married Filing Separately | $5,540 | $8,500 |
| Head of Household | $11,180 | $14,040 |
| Married Filing Jointly | $11,180 | One spouse over 65: $14,040 Both over 65: $17,000 |
Montana Sales Tax
Montana does not levy state or local general-use sales taxes. There are, however, various miscellaneous taxes collected at the state and/or local level for certain purchases or activities. For example, state taxes are set at 4% for medical marijuana and 20% for adult-use sales. Local rates set by the county can add up to an additional 3% for either type of purchase. Cigarettes also include an 8.5 cents tax per cigarette (averages $1.70 per standard pack) that is included in the retail price.
Montana Property Taxes
Montana residential property is valued every two years at 100% of market value. Counties mail out property tax bills each October. The first payment is due by November 30 or within 30 days of the postmark, whichever is later. The second payment is due on May 31.
The median property tax bill in Montana is $1,465 (based on a median home value of $176,300). Missoula County has the highest average annual bill at $2,176. The lowest average property tax bill in the state is $505 in Wibaux County.
| Highest | $2176 |
|---|---|
| Median | $1465 |
| Lowest | $505 |
Yearly Cost Per Resident
Montana Tax Holidays
Montana does not host any sales tax holidays since they do not levy any general-use sales tax.
Montana Tax Resources
If you need assistance preparing your Montana state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the Montana Department of Revenue website for additional resources.
- Filing Options
- Individual Income Tax Forms
- Where’s My Refund?
- Customer Service: 406-444-6900
