The facts on Montana’s Tax Climate

  • 6.9%
    Individual Income Tax
    7 brackets
  • 6.75%
    Corporate Income Tax
  • 0%
    Sales and Excise Taxes
  • $2,625
    Property Taxes

Montana‘s Individual Income Tax System 
Montana’s personal income tax system consists of seven separate brackets with a top rate of 6.9%, kicking in at an income level of $16,000. That rate ranks Montana 15th highest among states levying an individual income tax. Montana’s 2010 state-level individual income tax collections were $724 per person, which ranked 27th highest nationally.

Tax Freedom Day Arrives on April 15 in Montana

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2012, Montana taxpayers work until April 15 (ranked 21st nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Wyoming, April 23 (ranked 5th nationally); Idaho, April 17 (ranked 17th nationally); North Dakota, April 18 (ranked 14th nationally); and South Dakota, April 4 (ranked 46th nationally).

Montana’s State and Local Tax Burden Well Below National Average

Well below the national average of 9.8%, Montana’s current state and local tax burden percentage ranks 35th nationally at 8.7%, paying about $3,674 per capita in state and local taxes. Montana has dropped 8 places since 1977, from a ranking of 27th nationally at 9.7%. Currently Montana taxpayers pay $3,216 per capita in state and local taxes.
Montana’s State-Local Tax Burden, 1977-Present
Other States’ State/Local Tax Burdens
Map of U.S. Showing all State’s Burdens and Ranks
Historical Chart Comparing All States’ State/Local Tax Burdens from 1977 to 2009

Montana’s 2013 Business Tax Climate Index Ranks 8th

Montana ranks 8th in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Idaho (20th), Wyoming (1st), North Dakota (28th), and South Dakota (2nd).

50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)