Montana State Tax Guide
Explore Montana's state tax rates for income, sales, property, retirement and more. Learn how Montana compares nationwide.
Navigating the complexities of state taxes can be daunting, but understanding Montana's tax landscape is essential for residents and newcomers alike.
In this guide, we'll explore key components of the Treasure State's tax system, from income and sales taxes to property taxes and retirement benefits.
Montana state tax: Overview
Montana doesn't have a statewide sales tax, which can make everyday purchases feel a bit lighter. In some tourist-heavy spots, you might run into a local resort tax, but for most residents, sales tax is not something to worry about.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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.
When it comes to income tax, many middle-class families might find themselves in the top bracket, though changes in 2024 have lowered the rate.
Property taxes in Montana are generally lower than in many other states, which is a welcome benefit for homeowners.
[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 tax
Montana has a graduated state individual income tax rate ranging from 4.70% to 5.90%, according to the Tax Foundation.
Montana retirement taxes
Montana tax on retirement benefits. Montana does tax Social Security retirement benefits, but the amount taxed might differ from the federal taxable amount. Railroad Retirement benefits aren't taxed in Montana.
Tax on taxable income. Low of 4.7% (on up to $21,100 for single filers and $42,200 for joint filers) and a high of 5.9% for taxable income exceeding those thresholds for 2025.
- Social Security: Taxable (Partially deductible)
- Pensions: Taxable
- 401(k) and IRA distributions: Taxable
Montana sales tax
Montana doesn't have a statewide sales tax. However, some areas with populations under 5,500 might impose a resort tax.
What is the property tax rate in Montana?
In Montana, the average effective property tax rate is 0.6%.
Source: Tax Foundation
Montana property tax breaks for retirees
Homeowner/renter credit. Some homeowners and renters might 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 nine months
- Have lived at the same residence for a minimum of six months
- Have household income under $45,000
Montana gas tax
Gasoline | 27 cents per gallon |
Diesel | 28 cents per gallon |
Source: Sales Tax Handbook
Montana alcohol and tobacco taxes
Product | Tax Amount |
|---|---|
Cigarettes | $1.70 per pack |
Other tobacco Products | 50% of wholesale price |
Medical marijuana | 4% |
Recreational marijuana | 20% |
Source: Sales Tax Handbook
Product | Tax Amount |
|---|---|
Wine | $1.06 per gallon |
Beer | 14 cents per gallon |
Liquor | state-controlled |
Source: Sales Tax Handbook
Montana estate and inheritance taxes
Montana is one of the states with no estate or inheritance taxes.
Related
-
5 Investment Opportunities in 2026As investors game-plan for the year ahead, these five areas of the equity markets deserve their attention.
-
How Verizon’s Free Phone Deals WorkWhat shoppers need to know about eligibility, bill credits and plan costs.
-
Does Your Car Insurer Need to Know All Your Kids? Michigan Cases Raise QuestionWho you list on your policy matters more than most drivers realize, especially when it comes to who lives in your home.
-
A Free Tax Filing Option Has Disappeared for 2026: Here's What That Means for YouTax Filing Tax season officially opens on January 26. But you'll have one less way to submit your tax return for free. Here's what you need to know.
-
Georgia Tax Rebate And Income Elimination? What 2026 Could Mean For YouState Tax We break down how lawmakers aim to axe the state income tax and how much you could get in a Georgia tax refund in 2026.
-
When Do W-2s Arrive? 2026 Deadline and 'Big Beautiful Bill' ChangesTax Deadlines Mark your calendar: Feb 2 is the big W-2 release date. Here’s the delivery scoop and what the Trump tax changes might mean for your taxes.
-
Are You Afraid of an IRS Audit? 8 Ways to Beat Tax Audit AnxietyTax Season Tax audit anxiety is like a wild beast. Here’s how you can help tame it.
-
States That Tax Social Security Benefits in 2026Retirement Tax Not all retirees who live in states that tax Social Security benefits have to pay state income taxes. Will your benefits be taxed?
-
10 Cheapest Places to Live in WashingtonProperty Tax Is Washington your go-to ski destination? These counties combine no income tax with the lowest property tax bills in the state.
-
3 Major Changes to the Charitable Deduction for 2026Tax Breaks About 144 million Americans might qualify for the 2026 universal charity deduction, while high earners face new IRS limits. Here's what to know.
-
Retirees in These 7 States Could Pay Less Property Taxes Next YearState Taxes Retirement property tax bills could be up to 65% cheaper for some older adults in 2026. Do you qualify?
