Montana Tax Overview
Montana simplified its income tax to two brackets in recent reforms, with a top rate of 5.9% on income over $20,500. Notably, Montana has no state sales tax, one of only five states without one, relying more on income and property taxes for revenue. The state offers a relatively low cost of living outside of resort areas like Big Sky.
Montana Tax Quick Facts (2026)
| Income Tax | progressive (top rate: 5.9%) |
| Sales Tax (State) | None |
| Property Tax (Avg Effective) | 0.74% |
| Median Household Income | $66,017 |
| Capital | Helena |
| Population | 1.1 million |
Montana Income Tax Brackets (2026)
| Income Range | Tax Rate |
|---|---|
| $0 — $20,500 | 4.70% |
| $20,500+ | 5.90% |
Frequently Asked Questions About Montana Taxes
Does Montana have a state income tax?+
Yes, Montana has a progressive income tax system with a top marginal rate of 5.9%.
What is the property tax rate in Montana?+
The average effective property tax rate in Montana is approximately 0.74% of assessed home value. On a $300,000 home, that is about $2,220 per year.
What is the sales tax rate in Montana?+
Montana does not impose a state sales tax.
What is the median household income in Montana?+
The median household income in Montana is approximately $66,017 per year.
How does Montana's tax burden compare to other states?+
Montana's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.