Key Tax Facts: Montana
- No state sales tax - one of only five states without one
- Flat 5.9% rate starting 2024 (was graduated up to 6.75%)
- Pension income exemption up to $4,370 for eligible retirees
- Capital gains taxed at a reduced rate with 2% credit
Montana State Income Tax Overview
Montana imposes a graduated income tax with two brackets: 4.7% on income up to $21,100 for single filers and 5.9% above that. A 2021 reform replaced the previous seven-bracket ladder, which topped out at 6.75%, and Montana now uses the federal taxable income starting point, so the federal standard deduction of $15,000 for single filers and $30,000 for joint filers carries through. Montana allows a credit for income taxes paid to other states and provides a capital gains credit on qualifying net long-term capital gains. Social Security income is not taxed below certain income thresholds. Montana has no general sales tax, which is a meaningful offset to its income tax.
Montana Income Tax Brackets (2025)
These are the Montana state income tax brackets for tax year 2025. Montana applies the same brackets to all filing statuses. Only the income within each bracket is taxed at that rate -- not your entire income.
| Taxable Income | Tax Rate |
|---|---|
| $0 - $21,100 | 4.7% |
| Over $21,100 | 5.9% |
Source: Montana Department of Revenue. Montana applies these brackets to all filing statuses.
What a Montana Resident Actually Pays: A Worked Example
Your effective tax rate is almost always lower than your top bracket. Here is how the math works for a single filer earning $65,000.
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Frequently Asked Questions -- Montana Income Tax
Does Montana have a state income tax?
Yes. Montana imposes a state income tax with a top marginal rate of 5.9%. This is separate from your federal income tax obligation.
What is the Montana income tax rate for 2025?
Montana uses a graduated income tax system with rates from 4.7% to 5.9%. Only the income within each bracket is taxed at that bracket's rate -- not your entire income.
Do I have to file a Montana state tax return?
Most full-year Montana residents with income above the state filing threshold must file a state return. Check the Montana Department of Revenue for current thresholds and requirements.
How accurate is this estimate?
This is a planning estimate of your federal income tax only. It does not calculate Montana state tax, and it does not account for state deductions, credits, exemptions, or local taxes. Use the Montana rate schedule above as a reference, and verify with official Montana tax forms or a qualified tax professional.
Does this calculator include federal income tax?
Yes. The calculator estimates your 2025 federal income tax using the official IRS 2025 brackets. It does not compute your Montana state tax -- see the Montana rate schedule below to work that out.
Where can I find official Montana tax forms?
Official forms, instructions, and filing guidance are available at the Montana Department of Revenue.
What is the sales tax rate in Montana?
Montana's combined state and average local sales tax rate is 0%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are Montana 2025 state taxes due?
2025 taxes are generally filed in 2026. The Montana filing deadline is April 15, 2026, the same as the federal deadline.
Understanding Your Montana Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and Montana state tax owed to the Montana Department of Revenue. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your Montana Bill
Pre-tax retirement contributions reduce your federal and Montana taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, Montana-specific credits and deductions that don't exist at the federal level are listed at the Montana Department of Revenue -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
Montana's combined state-plus-average-local sales tax rate is 0%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Montana Department of Revenue or a qualified tax professional for guidance specific to your situation.