Rocky Mengle
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.
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.
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.
Related Content
-
Five Medicare Changes Coming in 2026Learn about the benefits that become permanent features of Medicare in 2026 and how they have been changed or updated since their inception.
-
Discover Which Five States Have AAA Offices Offering Real ID Services. Learn What You Need To Do To Take Advantage of Them.A trip to the DMV can be a painful experience. Skip the line and visit your AAA office to get your REAL ID (select states only).
-
Ten Cheapest Places To Live in New YorkProperty Tax If you’re planning a move in New York, here are the counties with the lowest property tax bills in the Empire State.
-
‘My Etsy Shop is Dead’: Vendors Cry for Help Amid Trump’s TariffsTariffs Small businesses are struggling to thrive as they absorb the Trump administration’s new wave of tariffs.
-
Three Things Star Wars Fans Taught Me About TaxTax Tips May the force be with you and your taxes this Star Wars Day 2025.
-
Retirees: Don’t Miss These Valuable State Tax Breaks in 2025Retirement Planning Selecting the right state for retirement can significantly impact your financial well-being.
-
10 Cheapest Places To Live in FloridaProperty Tax Make your Florida vacation spot a place for daily living — these counties have the lowest property tax bills in the state.
-
Missed Tax Day? Nearly One Million Taxpayers Still Can File and Claim Valuable Tax RefundsTax Refunds As many as one million taxpayers could be missing out on a significant tax refund.
-
Which Generation Pays the Most Tax in the US?Tax Burden Polls show that most people feel like taxes are unfair. But which age group bears the brunt of the tax burden in the United States?
-
Tax Day 2025: Don’t Miss These Freebies, Food Deals and DiscountsTax Day You can score some sweet deals on April 15 in some select restaurants like Burger King, Shake Shack, and more.
