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Montana State Taxes

Montana State Taxes

State Taxes at a Glance – Montana

Type of Tax2023
Individual Rates1.00% to 6.75%
Corporate / Business Tax Rates6.75% (flat tax)
Gross Receipts TaxNone
Sales TaxNone
Property Taxes0.75% as a percentage of primary home
Estate or Inheritance TaxNone

State of Montana Income Taxes

Like most states, Montana 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 DelawareNew 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 Income Taxes 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. Which means, they are only partially taxed.

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:
  • Phone# for Individuals – (406) 444-6900
  • Phone# for Businesses – Same