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 tax
Montana has a graduated state individual income tax rate ranging from 4.70% to 5.90%, according to the Tax Foundation.
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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.
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.
What is the property tax rate in Montana?
In Montana, the average effective property tax rate is 0.69%.
Source: Tax Foundation
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 gas tax
Gasoline: $0.27 per gallon.
Diesel: $0.28 per gallon.
Source: Sales Tax Handbook
Montana alcohol and tobacco taxes
Montana tobacco taxes
| Product | Tax Amount |
|---|---|
| Cigarette | $1.70 per pack |
| Other Tobacco Products | 50% of wholesale price |
Source: Sales Tax Handbook
Montana alcohol taxes
| Product | Tax Amount |
|---|---|
| Wine | $1.06 per gallon |
| Beer | $0.14 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.
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