Montana variant. This is a Montana-specific version of the Income Tax Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Income Tax Calculator.
Montana income tax (4.7-5.9% across 2 brackets) stacks on top of federal tax. Understanding both layers is essential to estimating your total Montana tax bill.
Montana state income tax structure
Montana taxes income at 4.7-5.9% across 2 brackets, with a top marginal rate of 5.9%. Like the federal system, only income within each bracket is taxed at that bracket's rate.
Federal brackets (10%–37%) apply nationwide. Combine your federal effective rate with the Montana rate to find your true marginal tax on the next dollar earned.
About taxes and housing in Montana
Montana levies a state income tax with a top marginal rate of roughly 5.9%, but it imposes no general statewide sales tax.
Montana property taxes are relatively low at an effective rate near 0.74%, with median home values around $470,000.
Montana's economy leans on agriculture, ranching, energy, and a growing tourism sector centered on its national parks and public lands.
Worked example: state tax on $66,341
Using the 5.9% top rate as a ceiling, state income tax on $66,341 is at most about $3,914; the actual figure is lower after brackets and deductions.
Quick reference
- State income tax: 4.7-5.9% across 2 brackets
- State sales tax: 0% (plus 0.00% avg local)
- Median home value: $470,000
- Median household income: $66,341
- Effective property tax rate: 0.74%
- Avg auto insurance: $1,471/yr
Frequently Asked Questions
Does Montana have state income tax?
Yes - 4.7-5.9% across 2 brackets, topping out at 5.9%.
What is the top tax rate in Montana?
The top marginal state rate is 5.9%.