Montana State Taxes

Montana State Taxes*

The State of Montana does not levy a “Use” or a “General” Sales Tax* on the individual Montana consumer. (Delaware, Alaska, New Hampshire and Oregon have neither tax as well.)

Information on a Variety of Montana Tax Types

2017 Montana Individual Income Tax Rates

2017 Montana Individual Income Tax Rates

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 13th highest in U.S.) and gasoline (1947), 27.75 cents per gallon (18th 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 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 2017, Montana is ranked 24th; in 2014, Montana was ranked 15th among states taxing at the individual level, and in 2005, Montana was 26th highest in the U.S.

Montana State Property Tax and Montana Local Property Tax* (thirty-seven other states levy both taxes, too.) Local property taxes in Montana are higher than Montana’s state property tax. In 2017, Montana’s property tax rate is 17th, at a per capita rate of $1465.  According to fiscal year 2014, Montana state and local property taxes reaped over $1.4 Billion in revenue.

In 2016, Compared to All States, Montana was #33 in its Property Tax Burden, .75%.

Compare the 2014 total of over $1.4 Billion with 2002 figures, when the combined Montana state and local property tax take was a mere $958,779,000, on a $1034 per capita rate, making it 20th in the U.S. In 2006 the per capita figure rose to $3,108, ranking the state 44th in the U.S, which, although a substantial increase in state tax, was a substantial decrease compared to almost all other states.

State by State Dependence on US Federal Assistance

Tax Foundation: State by State Dependence US Federal Assistance: Montana 4th in 2014.

In 2014, Montana was ranked fourth, at 39.1%, (in 2013, sixth) in the nation in Federal aid dependence.

Montana Corporate Income Tax* structure is based on a flat 6.75% rate. Among US states levying a corporate income tax, Montana is 13th in 2017, 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.

Montana Severance Tax* was responsible for over 6% of Montana state taxes in 2014: this tax includes metalliferous mines licenses, mineral mining, oil and gas producers, micaceous minerals licenses, coal, and cement licenses.

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

Montana Excise Tax* is levied on fuels, parimutuels, tobacco products, insurance premiums, public utilities, alcohol: liquor – 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/Estate Tax* Montana’s estate tax is equal to the maximum credit allowed against the federal estate tax..

*All information contained herein is derived from sources deemed reliable, however, information is not guaranteed by Taunya Fagan Bozeman real estate, agents, brokers, or ESTATE House.