State Taxes at a Glance – Montana
| Type of Tax | 2023 |
|---|
| Individual Rates | 1.00% to 6.75% |
| Corporate / Business Tax Rates | 6.75% (flat tax) |
| Gross Receipts Tax | None |
| Sales Tax | None |
| Property Taxes | 0.75% as a percentage of primary home |
| Estate or Inheritance Tax | None |
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. The tax rates range from between 1.00% to 6.75%. The highest bracket starts at $21,600.
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 6.75%.
Sales and Property Taxes in Montana
Sales Tax – Montana is one of only four states that does not have State or Local sales tax. (the others being Delaware, New Hampshire, and Oregon).
Accommodations Tax – Montana does have a lodging tax of 4%, for resorts. If you own an Airbnb, lookout!
Property Taxes in Montana – the average property tax rate for residential property in the state of Montana is 0.75%. Which puts it below the national average of 1.08%.
Montana County Option DMV Tax
Montana has a tax named the County Option Tax which is 0.5% of the value of the vehicle. Since it’s based on the vehicles value, it’s deductible on your tax return. Here is a link to their website.
Montana Domicile
If you maintain a permanent place of abode and have not established residency elsewhere, you are considered a Montana resident.
Montana Tax on Social Security Benefits
Montana is one of the few states that partially taxes social security benefits. They use a similar method as the IRS does for federal tax on social security.
Payroll 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 $40,500, 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
Montana Tax Contact Phone Numbers
Important phone numbers for the Montana Department of Taxation:
- Website: www.mtrevenue.gov
- Phone# for Individuals – (406) 444-6900
- Phone# for Businesses – Same