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
-
What You Should Know About Assisted LivingIf you decide that an assisted-living community is right for you or your loved one, take these steps to make sure that its fees, services and quality of care fit your needs.
-
How One Widow Nearly Missed Out on $213,000 in Social SecurityLosing your partner often means losing 30% to 50% of your household income. This financial adviser emphasizes that planning ahead and understanding the rules surrounding survivor benefits can help.
-
New GOP Car Loan Tax Deduction: Which Vehicles and Buyers QualifyTax Breaks To fulfill Trump's campaign promise, House GOP lawmakers want to offer a tax deduction for car loan interest. How would it work?
-
Big GOP Tax Bill Could Change Your Estate Planning for 2025Tax Law The GOP might extend and increase the higher estate and gift tax exemption and AMT thresholds. What might this mean for your estate plan?
-
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.
