Montana

Sales Tax

  • Statewide: None
  • Counties cannot levy any sales tax.
  • Gasoline Tax: 51.65 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 54.70 cents/gallon (Includes all state, local, and federal taxes)
  • Communities designated as resort areas may levy sales tax up to 3%.

 

Personal Income Tax

  • Personal Income Tax Rate Range: Seven brackets from 1.0% to 6.75% on income greater than $18,800.
  • Standard deduction: Single Filers: $4,830. Married Filing Jointly: $9,660. Subject to phase-out.
  • Personal Exemption Allowance: $2,580. Dependent Exemption: $2,580
  • Itemized Deductions Allowed? Yes, subject to limitations
  • Retirement Income
    • Social Security: Some or all may be taxable*
    • IRAs: Taxable at ordinary income tax rates*
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
    • Private pensions: Taxable at ordinary income tax rates*
    • Public Pensions: Taxable at ordinary income tax rates*
  • Military Pay
    • Active Duty Pay: Exempt, except for salaries for training or National Guard under certain circumstances.
    • Military Retirement Pay: Taxable at ordinary income tax rates*
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Taxable to the extent included in federal Adjusted Gross Income (Exempt for survivors receiving death benefits from Montana National Guard member killed in action)
Income Tax Comments: *Retirement income of up to $4,400 may be exempt if federal AGI less than $38,900 ($41,100 married filing jointly). Federal income tax deductible (limited to $5,000). $800 exempt if 65 or older. Income tax rate may increase back to 6.9% if receipt of state's American Plan Rescue Act funds is jeopardized. 

 

Property Tax

  • Local municipalities average .84% of the property's assessed value.
  • Calculation of assessed value: 100% of fair market value, appraised every two years.
  • Relief programs for:
    • Owner-occupied: Taxes can be reduced up to 80% on the first $200,000 of the assessed value if income is less than $23,385 ($31,181 if married filing jointly).
    • Over 62: Credit of up to $1,150 if meet income and residency requirements.
    • Disabled Veterans/Surviving Spouse: Up to 100% tax credit if income less than $54,607 ($62,385 if married filing jointly).
  • Personal Property Tax: Yes. Rates and exemptions vary.

 

Inheritance & Estate Taxes: None

 

Department of Revenue website: www.revenue.mt.gov

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