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.
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Starting in 2024, the partial exemption on qualified retirement income in Montana is repealed.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.
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