Montana State Tax Guide
Montana state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.


Montana State Tax: Overview
Montana does not have a statewide sales tax. However, some areas may impose a special "resort tax." Many middle-class families in Montana may have income that falls into the highest Montana income tax bracket since that bracket applies to taxpayers with taxable income over $19,800. The highest income tax rate is reduced for tax year 2024, and property taxes are lower in Montana than in many other states.
[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Montana Income Taxes
Montana tax on retirement benefits: Montana does tax Social Security retirement benefits, but the amount taxed may differ from the federal taxable amount. Railroad Retirement benefits are not taxed in Montana. In 2023, some pension and annuity income may qualify for a partial exemption.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Starting in 2024, the partial exemption on qualified retirement income in Montana is repealed. Instead, taxpayers 65 and older can subtract $5,500 of taxable income.
Montana Income Tax Range 2023: All filing statuses
Up to $3,300 | 1% |
$3,301 to $5,800 | 2% |
$5,801 to $8,900 | 3% |
$8,901 to $12,000 | 4% |
$12,001 to $15,400 | 5% |
$15,401 to $19,800 | 6% |
More than $19,800 | 6.75% |
The table above reflects income tax rates for 2023. Montana will have only two income tax brackets in 2024. The tables below show income tax rates for tax year 2024.
Montana Income Tax Range 2024: Single filers, estates, and trusts
Up to $20,500 | 4.7% |
More than $20,500 | 6.5% |
Montana Income Tax Range 2024: Married filing jointly and qualifying widow(er)
Up to $41,000 | 4.7% |
More than $41,000 | 6.5% |
Montana Income Tax Range 2024: Head of household
Up to $30,750 | 4.7% |
More than $30,750 | 6.5% |
Montana Sales Tax
Montana does not have a statewide sales tax. However, some areas with populations less than 5,500 may impose a resort tax.
How Much Are Property Taxes in Montana?
In Montana, the average effective property tax rate is 0.83%.
(Note: Montana property tax rebate checks and tax cuts were recently passed.)
Montana Property Tax Breaks for Retirees
Homeowner/Renter Credit: Some homeowners and renters may qualify for a tax credit of up to $1,150. To qualify, Montana residents must meet the following criteria.
- Be age 62 or older
- Have lived in Montana for a minimum of 9 months
- Have lived at the same residence for a minimum of 6 months
- Have household income less than $45,000
Montana Motor Vehicle Taxes
Montana imposes a gasoline tax of $0.33 per gallon.
There is no state sales tax on motor vehicle purchases, but the Montana DMV imposes other fees.
Montana Alcohol and Tobacco Taxes
Cigarettes | $1.70 per pack |
Other tobacco products | 50% of wholesale price |
Beer | $0.14 per gallon |
Wine | $1.06 per gallon |
Liquor | State-controlled ($9.83 per gallon estimate by the Distilled Spirits Council) |
Marijuana | 20% excise tax (localities can add an additional 3%) |
Montana Estate and Inheritance Taxes
Montana is one of the states with no estate or inheritance taxes.
Related Content

Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.
-
Tennis Channel To Serve Up New Streaming Service Next Year
The Tennis Channel's direct-to-consumer streaming service will include live and on-demand matches as well as original programming.
By Joey Solitro Published
-
Year-End Tax Planning for a Financially Healthier Retirement
Getting your tax ducks in a row for the end of the year can decrease your tax liability and make the most of your income, now and in retirement.
By Ryan Marston, Investment Adviser Representative Published
-
Capital Gains Tax on Real Estate and Home Sales
Capital Gains Tax Selling your home or a rental property? Here are important capital gains tax rules to keep in mind.
By Joy Taylor Published
-
Another Big IRS Tax Change for Online Sellers
Selling Online Just in time for the holidays, the IRS is delaying a significant tax 1099-K reporting requirement for 2023.
By Kelley R. Taylor Last updated
-
Tax-Deductible Black Friday Deals for the Self-Employed
Black Friday Deals Some Black Friday deals can help the self-employed save on business expenses and taxes.
By Katelyn Washington Published
-
Did You Overpay for Thanksgiving Dinner?
Thanksgiving 2023 marks the second most expensive Thanksgiving dinner in history. But how much it cost depended on what you bought, where you live — and whether your state taxes groceries.
By Katelyn Washington Last updated
-
Most Expensive States for Retired Military Service Members
Military Retirement Veterans can keep more of their military retirement pay by avoiding these high-taxed, most expensive states for retired service members.
By Katelyn Washington Last updated
-
2023 401(k) Contribution Deadline Coming Soon
401(k) Contributions Year-end is the deadline for making max 401(k) contributions that can increase your savings for retirement and help lower your tax bill.
By Kelley R. Taylor Last updated
-
10 Worst States To Retire in if You Hate Paying Taxes
State Taxes Relatively high tax burdens make these places the worst states to retire.
By Katelyn Washington Last updated
-
Charitable Donations: What To Know About Scams and Taxes Before You Give
Donations Giving to a charity can make you feel good and lower your tax bill, but the IRS says to beware of fake charities.
By Katelyn Washington Last updated