Montana Income Tax Calculator

Overview of Montana Taxes: Montana has a progressive state income tax, with a top rate of 5.90%. Montana only has a few other types of taxes. There is no sales tax in the state, and property taxes are below the national average.

Find a high-yield deposit account that works for you

Taxes can really put a dent in your paycheck. But with an interest-bearing account, you can let your money work for you.  Save more with these rates that beat the National Average*:

The National Average is based on the APY average for high-yield savings accounts with a minimum balance of $2,500, using data available from Bankrate.*

Taxes in Montana

Montana State Tax Quick Facts

• Income tax: 4.70% – 5.90%
• Sales tax: None
• Property tax: 0.69% median effective rate
• Gas tax: 33.75 cents per gallon of regular gasoline

Montana is a relatively taxpayer-friendly state. There are no sales taxes in Big Sky Country and property taxes are below the national average, with an average effective rate of just 0.69%. The state does have a personal income tax, though, ranging from 4.70% to 5.90%. That bottom rate is relatively low on average, but the top rate is fairly high. To offset income taxes, however, Montana offers a number of tax credits, including a credit for capital gains.

A financial advisor can help you understand how taxes fit into your overall financial goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Montana Income Taxes

The Montana state income tax is progressively structured, with higher rates for higher income earners. 

Income Tax Brackets

To calculate income taxes, Montana taxpayers should begin with their federal adjusted gross income (AGI). That number may include some types of income that are not taxable in Montana and need to be subtracted.

Social Security income, unemployment compensation, state income tax refunds, interest from federal bonds or notes, some pension income and active duty military income are among the types of income that can be subtracted from federal AGI when calculating taxable income in Montana.

Montana does not have its own standard deduction. Instead, the state defaults to the federal standard deduction of $15,750 for single filers and $31,500 for joint filers in 2025. 

In addition to deductions and exemptions, Montana offers credits to reduce the total tax burden of taxpayers in certain circumstances. Those credits include the credit for income taxes paid to another state, the college contribution credit, the qualified endowment credit, the energy conservation installment credit, the alternative fuel credit, the elderly care credit, and the recycle credit. 

Montana Capital Gains Tax

Montana applies a capital gains tax based on taxable income levels, with rates varying depending on filing status. A 4.7% tax rate applies to income up to $21,600, while incomes exceeding $21,600 are taxed at 5.9%.

Montana Sales Tax

There is no state sales tax in Montana. Goods and services can be purchased sales-tax-free, though “sin” taxes on alcohol and cigarettes do apply.

Montana Alcohol Tax

While there is no sales tax in Montana, the state does collect excise taxes on alcoholic beverages. These are typically collected from the wholesaler and not at the point of sale, so they may not appear on your receipt. Instead, they will be directly included in the price. The tax varies depending on the beverage type and alcohol content. Beer is taxed at a rate of 14 cents per gallon and liquor is taxed at a rate of $10.55 per gallon.

Montana Cigarette Tax

As with alcohol, Montana levies an excise tax on cigarettes. The tax is $1.70 per pack. The state collects the tax from wholesalers, who must then attach decals to each pack of cigarettes sold as proof of payment. Because wholesalers pay the tax, it is already included in the price that consumers pay.

Montana Property Tax

Although property taxes primarily support local governments and services in Montana, the state Department of Revenue oversees the appraisal and assessment of property throughout the state to ensure that properties are evaluated in a uniform manner. The state’s average property tax collections are relatively low, with an effective rate (property taxes as a percentage of home value) of 0.69%. The median property tax bill in the state is $2,939, which is below the national median of $3,211.

If you’re considering purchasing a house in the Big Sky State, or if you’re already a Montana resident and want to refinance your mortgage, check out our Montana mortgage guide. It breaks down the rates and other information you’ll need to know before getting a mortgage.

Montana Gas Tax

Big Sky Country is a great place for a road trip, but keep in mind the state’s gas taxes when planning your route. The tax on regular gasoline is 33.75 cents per gallon. 

Montana Estate Tax

There is no estate tax in Montana. Prior to that date, the estate tax was equal to the maximum credit allowed against the federal estate tax.

Calculate Your Income Taxes in These Other States