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
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.
-
S&P 500 Hits New High Before Big Tech Earnings, Fed: Stock Market TodayThe tech-heavy Nasdaq also shone in Tuesday's session, while UnitedHealth dragged on the blue-chip Dow Jones Industrial Average.
-
4% and Chill? Find Out If This Distribution Rule Fits Your RetirementTake this simple quiz to discover whether the 4% Rule will work for you in retirement.
-
Oregon Tax Kicker in 2026: What's Your Refund?State Tax The Oregon kicker for 2025 state income taxes is coming. Here's how to calculate your credit and the eligibility rules.
-
Oregon Tax Kicker in 2026: What's Your Refund?State Tax The Oregon kicker for 2025 state income taxes is coming. Here's how to calculate your credit and the eligibility rules.
-
3 Retirement Changes to Watch in 2026: Tax EditionRetirement Taxes Between the Social Security "senior bonus" phaseout and changes to Roth tax rules, your 2026 retirement plan may need an update. Here's what to know.
-
Tax Season 2026 Is Open: 8 Big Tax Changes to Know Before You FileTax Season Due to several major tax rule changes, your 2025 return might feel unfamiliar even if your income looks the same.
-
Do You Pay Property Taxes in Tennessee? What You Need to Know in 2026Property Taxes State lawmakers are moving to ban state property taxes, but can they stop the local rate spike? Here's how 2026 could lower your Tennessee property tax bill.
-
12 Tax Strategies Every Self-Employed Worker Needs in 2026Your Business Navigating the seas of self-employment can be rough. We've got answers to common questions so you can have smoother sailing.
-
New California Wealth Tax for 2026? Here's What's Happening NowState Taxes California has considered taxing wealth before, but the latest proposal seems to be different.
-
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.