Montana Tax Brackets
How to read this: Only the income within each bracket is taxed at that rate. Your total tax is the sum across brackets.
| Income Range | Tax Rate |
|---|---|
| $0 - $47,500 | 4.70% |
| $47,500+ | 5.65% |
Brackets shown for single filers. Married filing jointly brackets may differ. Use the calculator above to see your specific situation.
What People Get Wrong
“Progressive tax means I'll pay the top 6.75% on all my income in Montana.”
Montana's progressive system starts at just 1% for the first $3,600-$7,200 of income (depending on filing status), and most middle-income earners pay effective rates around 5%-6%, not 6.75%. The 6.75% rate only applies to income above $21,500 (single) or $43,000 (married). Someone earning $75,000 pays an effective rate around 5.5%-6% (~ $4,125-$4,500 annually).
“Montana has low taxes because it's a rural state.”
While Montana's top income tax rate (6.75%) is moderate, the compressed brackets mean most earners quickly reach higher rates. A $75,000 earner pays an effective rate around 5.5%-6%, while the same earner in a flat-tax state like Pennsylvania would pay $2,300 (3.07% flat, though PA may have local EIT). However, Montana's lack of sales tax benefits spenders, and the top 6.75% rate is competitive with many states.
“Montana's tax structure is the same as other states with no sales tax.”
Montana is one of only five states with no sales tax (along with Alaska, Delaware, New Hampshire, and Oregon). This creates a unique revenue model where Montana relies more heavily on income tax (progressively higher rates up to 6.75%) and property taxes. Unlike zero-income-tax states like Texas or Florida that rely on sales/property taxes, Montana taxes income progressively while exempting sales transactions from taxation.
Key Facts That Affect Your Take-Home Pay
- Montana uses a progressive income tax system with seven brackets, starting at 1% for the first $3,600 of income (single) or $7,200 (married) and escalating through incremental brackets to a top rate of 6.75% for income above $21,500 (single) or $43,000 (married), making Montana's bracket structure relatively simple with compressed brackets at low income levels.
- Montana's progressive brackets are compressed at the bottom, meaning the first six brackets cover only the first $21,500-$43,000 of income (depending on filing status), so most middle and high earners quickly reach the top 6.75% rate. For a $75,000 earner, ~ $53,500-$32,000 of income is taxed at 6.75%, making the effective rate around 5.5%-6%, not the top 6.75% rate.
- Montana does not levy city or county income taxes, meaning the same tax rules apply throughout the state. All Montana residents have the same income tax structure: only the state progressive brackets apply.
