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Montana State Taxes


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 and Property Taxes in Montana

Sales Tax – 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%.

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 $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

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