Montana State Taxes

Montana State Taxes*

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

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. 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 the U.S, which, although a substantial increase in state tax, compared to almost all the other states, it is a substantial decline.

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

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: 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 Tax* was recently repealed by voters.

*All information contained herein is derived from sources deemed reliable, however, information is not guaranteed by Christies, Managing Broker, or Taunya Fagan