Montana State Taxes

No State of Montana Use and No Montana General Sales Tax* is levied on the Montana consumer. (Delaware, Alaska, New Hampshire and Oregon have neither tax as well.) Two of Montana’s excise taxes are levied on cigarettes (1921): $1.70 per pack, ranking this tax 13th highest in U.S., and gasoline (1947), 27.75 cents per gallon, 18th highest in U.S.

Montana Personal Income Tax* rate system is made up of of seven individual brackets. Montana’s top rate, ~6.9%, is levied when a person’s income is beyond ~$14,900. Montana is ranked 15th among states taxing at the individual level. In 2005, Montana taxed individuals $763, which is 26th highest in the U.S.

Montana State Property Tax and Montana Local Property Tax* Local property taxes are higher than Montana’s state property tax. Thirty-seven other states levy both, too. According to fiscal year 2004, U.S. Census Bureau data found Montana communities took $774,842,000 in property taxes. During fiscal year 2002, Montana took in $183,937,000 in property taxes. In 2002, the combined Montana state and local property tax take was $958,779,000, equaling $1034 per capita, making it 20th in the U.S. In 2006 the figure rose to $3,108, ranking the state 44th in th U.S, which, although a substantial increase in state tax, compared to almost all the other states, it is a substantial decline.

Montana Corporate Tax* structure is based on a flat 6.75% rate. Among states levying a corporate income tax, Montana is 28th in the U.S. In 2006, state-level corporate tax took in (subtracting local tax) an average of $162.68 per capita, which is 18th in the U.S.

Montana Severance Tax* is responsible for over 6% of Montana state taxes: this includes metalliferous mines licenses, mineral mining, oil and gas producers, micaceous minerals licenses, coal, and cement licenses.

Montana Excise Tax* is levied on fuels, parimutuels, tobacco products, insurance premiums, public utilities, alcohol: liqour – beer – wine, amusements like gambling, and others.

Montana’s Tax Revenue* totals are broken down in this manner: ~36% is derived from individual income tax, ~26% is derived from selective sales tax, ~14% is derived from license fees, ~11% is derived from state property taxes, ~9% is derived from local taxes, and ~4% is derived from corporate income tax.

Montana Inheritance Tax* was recently repealed by voters.