Montana State Tax Guide

Montana state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.

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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

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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

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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?

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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

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Gasoline: $0.27 per gallon.

Diesel: $0.28 per gallon.

Source: Sales Tax Handbook

Montana alcohol and tobacco taxes

Montana tobacco taxes

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ProductTax Amount
Cigarette$1.70 per pack
Other Tobacco Products50% of wholesale price

Source: Sales Tax Handbook

Montana alcohol taxes

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ProductTax Amount
Wine$1.06 per gallon
Beer$0.14 per gallon
Liquorstate-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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Katelyn Washington
Former Tax Writer

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.

With contributions from