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 $51,600.
- Standard deduction: Single Filers: $5,540. Subject to phase-out.
- Personal Exemption Allowance: $2,960. Dependent Exemption: $2,960
- 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: Beginning in tax year 2024, 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: 50% of SBP benefits can be exempted under the same conditions outlined for military retirees above. Fully 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 .83% 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 $24,607 ($32,810 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 $56,892 ($65,645 if married filing jointly).
- Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: None
Department of Revenue website: www.revenue.mt.gov
