Montana

Sales Tax

  • Statewide: None
  • Counties cannot levy any sales tax.
  • Gasoline Tax: 52.15 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 54.90 cents/gallon (Includes all state, local, and federal taxes)
  • Communities designated as resort areas may levy sales tax up to 3%.

Personal Income Tax

  • Personal Income Tax Rate Range: Two brackets from 4.7% to 5.9% on income greater than $21,100.
  • Standard deduction: Single Filers: $15,000. Subject to phase-out.
  • Personal Exemption Allowance: None
  • Itemized Deductions Allowed? Yes, subject to limitations
  • Retirement Income
    • Social Security: Some or all may be taxable*
    • IRAs: Taxable at ordinary income tax rates*
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
    • Private pensions: Taxable at ordinary income tax rates*
    • Public Pensions: Taxable at ordinary income tax rates*
  • Military Pay
    • Active Duty Pay: Certain pay such as base pay is exempt.
    • Military Retirement Pay: Resident working military retirees may claim an exemption on the lesser of 50% of their military retirement income or the amount of Montana source income (full details).*
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Up to 50% may be exempt. Some exceptions apply.  

*Retirement income of up to $5,560 may be exempt if 65 or over. Federal income tax deductible (limited to $5,000).  

Property Tax

  • Local municipalities average .79% of the property's assessed value.
  • Calculation of assessed value: 100% of fair market value, appraised every two years.
  • Relief programs for:
    • Low-Income Owner-Occupied: Taxes can be reduced up to 80% if meet income and other requirements.  
    • Over 62: Credit of up to $1,150 if meet income and residency requirements.
    • Disabled Veterans/Surviving Spouses: Up to 100% tax credit if meet income requirements.  
  • Personal Property Tax: Yes. Rates and exemptions vary.

Inheritance & Estate Taxes: None

Department of Revenue Website: www.revenue.mt.gov

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