Sales Tax
- Statewide: None
- Counties cannot levy any sales tax.
- Gasoline Tax: 51.65 cents/gallon (Includes all state, local, and federal taxes)
- Diesel Fuel Tax: 54.70 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: Seven brackets from 1.0% to 6.75% on income greater than $18,800.
- Standard deduction: Single Filers: $4,830. Married Filing Jointly: $9,660. Subject to phase-out.
- Personal Exemption Allowance: $2,580. Dependent Exemption: $2,580
- 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: Exempt, except for salaries for training or National Guard under certain circumstances.
- Military Retirement Pay: Taxable at ordinary income tax rates*
- Military Disability Pay: Exempt
- VA Disability Dependency & Indemnity Compensation Benefits: Exempt
- SBP/SSBP/RCSBP/RSFPP: Taxable to the extent included in federal Adjusted Gross Income (Exempt for survivors receiving death benefits from Montana National Guard member killed in action)
Income Tax Comments: *Retirement income of up to $4,640 may be exempt if federal AGI less than $40,890 ($43,000 married filing jointly). Federal income tax deductible (limited to $5,000). $800 exempt if 65 or older. Income tax rate may increase back to 6.9% if receipt of state's American Plan Rescue Act funds is jeopardized.
Property Tax
- Local municipalities average .84% of the property's assessed value.
- Calculation of assessed value: 100% of fair market value, appraised every two years.
- Relief programs for:
- Owner-occupied: Taxes can be reduced up to 80% on the first $200,000 of the assessed value if income is less than $23,385 ($31,181 if married filing jointly).
- Over 62: Credit of up to $1,150 if meet income and residency requirements.
- Disabled Veterans/Surviving Spouse: Up to 100% tax credit if income less than $54,607 ($62,385 if married filing jointly).
- Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: None
Department of Revenue website: www.revenue.mt.gov
