Montana vs Federal Tax Comparison
| Tax Type | MT State Rate | Federal Rate | Notes |
|---|---|---|---|
| Personal Income Tax | 4.7–5.9% | Federal: 10–37% | Combined fed+state applies |
| Corporate Income Tax | 6.75% | Federal: 21% | 6.75% flat corporate rate |
| State Sales Tax | None | No federal sales tax | Combined avg: 0% |
| Capital Gains Tax | 4.1% | Federal: 0–20% | Special rate may apply |
About Montana Taxes
No sales tax; capital gains taxed at reduced 4.1% rate.
Montana levies income tax at rates from 4.7–5.9%. The progressive bracket system means higher earners pay a larger percentage on income above each threshold.
Corporate activity in Montana faces a 6.75% state corporate tax rate. 6.75% flat corporate rate. Combined with the 21% federal corporate rate, businesses should plan accordingly.
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Open US Salary CalculatorFrequently Asked Questions — Montana Taxes
What are Montana's income tax brackets for 2026?
Montana has a progressive income tax ranging from 4.7–5.9%. The top rate of 5.9% applies to the highest income bracket. Filers should check the current threshold amounts on the Montana Department of Revenue website.
What is the corporate income tax rate in Montana?
Montana imposes a corporate income tax at 6.75%. 6.75% flat corporate rate. Businesses should also account for federal corporate tax at 21% on top of the state rate.
What is the sales tax rate in Montana?
Montana has no state sales tax, making it one of only five states without one. This significantly reduces the cost of goods compared to states with combined rates above 9%.
How does Montana compare to neighboring states for taxes?
Montana's overall tax burden ranks near average among US states. The state levies income tax at up to 5.9%. For individuals evaluating relocation or remote work, comparing the full picture — income, sales, and property taxes — is essential. Use our US Salary Calculator to estimate your net income in Montana.
Are there any special tax incentives or exemptions in Montana?
Montana offers notable tax characteristics: No sales tax; capital gains taxed at reduced 4.1% rate. Businesses and individuals should consult a qualified tax advisor to understand eligibility for available credits, deductions, and incentives specific to Montana.
Cost of Living in Montana
Tax rates are only part of the picture — explore city-level cost of living data:
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