STATE RANKING #30

Quick facts: 

-The State of Montana has both personal and business income tax, but does not have any sales tax.

6.90%

State Income Tax

State
Income
Tax

6.75%

Cost of Setting Up A Business

state
business
tax

LOW

Property
Taxes

NONE

Sales
Tax (average)

State Income Taxes in Montana

The state of Montana does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale with multiple brackets (7). The tax rates range from between 1.00% to 6.90% for 2020. The highest bracket starts at $18,400.

State Business Taxes in Montana

The state of Montana has a flat Corporate income tax rate of 6.75% on all income on C Corporations. For other businesses that flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., they are taxed at the individual income tax rates that range from 1.00% to 6.90%.

Sales Taxes in Montana

Montana is one of only four states that does not have State or Local sales tax – yay! (the others being DelawareNew Hampshire, and Oregon).

Property Taxes in Montana

The average property tax rate for residential property in the state of Montana is 0.76%. Which puts it below the national average of 1.05%.

Unemployment taxes in Montana

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:

  • Wage Base – Montana has a wage base of $33,000, which is very high!
  • UI Rates – range from 0.13% to 6.30%
  • Schedules – Montana has multiple rate schedules regarding UI

Montana Business Entities - LLCs

Montana is one of the least expensive states in the country to open an LLC. Here are some important facts:

  • Montana’s annual LLC fee is $20.
  • When you register with the state, you pay a one time fee of $70
  • Secretary of State of Montana website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

State #29

State #31