April 6th, 2020

Montana State Taxes

Montana State Taxes 2019/2020*

Montana State Taxes: Personal Income, Excise, Sales, Property, Corporate, Severance, Inheritance Taxes

Montana Personal Income Tax* rate system is made up of seven individual brackets, from 1% to 6.9%.

Montana’s top rate, 6.9%, is levied when a person’s income is beyond ~$14,900. In 2019, Montana ranked 25th, in 2016, Montana ranked 24th; in 2014, Montana was ranked 15th among states taxing at the individual level, and in 2005, Montana was ranked 26th.

2019 Montana Individual Income Tax Help Form
2019 Montana Individual Income Tax Help Form

Montana Excise Taxes* are levied on: fuels; autos; tobacco products; insurance premiums; cell phones; public utilities; alcohol: liquor, wine, and beer; amusements like gambling and parimutuels; firearms and others.

Montana is #21 in excise tax collection per capita, collecting an average of $550/person (most current data from 2016).

The State of Montana does not levy a “Transaction,” “Use” or “General” Sales Tax* on the individual Montana consumer. (Delaware, Alaska, New Hampshire and Oregon have no sales tax as well.)

2019: Five of Montana’s excise taxes procure two-fifth’s of the state’s tax revenue: one-fifth of the state’s taxes are levied on both cigarettes (1921): $1.70 per pack (ranking this tax 23rd highest in U.S.) and gasoline (1947), 32.75 cents per gallon (22nd highest in the United States).

Montana also taxes licenses for alcohol sales and operating licenses, as well as taxes on oil and gas production, accounting for the other fifth.

“No state is rated more fair in how it distributes its tax burden than Montana, where wealthy property owners and energy producers pay more to keep the government functioning.” Washington Post, Sept 19, 2014 

Montana State Property Tax* and Montana Local Property Tax* (thirty-seven other states levy both taxes, too.) Montana’s Effective Property Tax Rate is .76%. with a burden of 3.44%. Local property taxes in Montana are higher than Montana’s state property tax.

In 2019, Montana’s property tax rate was 10th at a rate of $1509/capita and the 19th highest in monies collected/capita in the US. During the three years prior, it remained at 9th, at a per capita rate of $1465.

According to fiscal year 2019, Montana state taxes on property totaled over $125 million in revenue. The 2014 property tax revenue reaped over $198 million, the 2002 revenue figures were about $142,000,000, on a $1034 per capita rate, making it 20th in the U.S. In 2006, state property tax revenue was approximately $127 million and the per capita figure rose to $3,108, ranking the state 44th in the U.S, which, although a substantial increase in the state’s property tax, was a substantial decrease compared to almost all other states in 2006.

In 2019, Montana ranked #6, at 40.6% in the nation in Federal Aid Dependence, and in 2014, Montana ranked fourth, at 39.1%.

Montana Corporate Income Tax* structure is based on a flat 6.75% rate. Among US states levying a corporate income tax, Montana was 21st in 2019, (up 4 spots from 2018, but down 12 spots from 2020!) Montana was 28th in 2014, and in 2006, state-level corporate taxes took in (subtracting local tax) an average of $162.68 per capita, which was 18th in the U.S.

2017 General Fund Montana Tax Revenue Percentage Breakdown
2017 Montana General Fund Tax Revenue Percentage Breakdown

Montana Severance Tax* varies from mineral to mineral, but, nonetheless, severance taxes were responsible for over 6% of Montana state taxes in 2019 and have remained steady for a number of years. Severance taxes include licenses for metalliferous mines; mineral mining; oil and gas drilling and production; micaceous minerals licenses; coal mining and production; cement licenses.

“Rather than sales taxes, Montana depends more on income taxes to raise the money the state government needs to operate.”

Montana’s Tax Revenue* most recently found totals are for 2017 and are broken down by the top 5, accounting for 91% of total Montana tax revenue: 55% is derived from individual income tax, 13% is derived from selective sales tax, 12% is derived from property taxes, 6% is derived from corporate taxes, and 5% is derived from vehicle fees and taxes.

There is no Montana Inheritance/Estate Tax,* however, Montana’s estate tax and trust tax is applicable to a fiduciary, who files and pays income tax on behalf of the trust or estate.

Information on a Variety of Montana Tax Types

*Taunya Fagan Bozeman Real Estate, Brokers, Agents, or ESTATE House does not advise on any tax requirements or issues. Use of any information from this site or any other web site referred to is for general information only and does not represent personal tax advice either express or implied. You are encouraged to seek professional tax advice for personal income tax questions and assistance. Charts, files, and photos on this page may not be the most recent.

BOZEMAN, MONTANA REAL ESTATE REPORTS

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