tax

Montana



Montana collects state taxes at rates ranging from 1 percent to 6.9 percent, assessed over seven income brackets. More on Montana taxes can be found in the tabbed pages below.

Income
Sales
Property
Estate
Other
Personal income tax
Montana's income tax system covers seven income brackets:
-- 1 percent on the first $2,500 of taxable income.
-- 2 percent on taxable income between $2,500 and $4,400.
-- 3 percent on taxable income between $4,400 and $6,600.
-- 4 percent on taxable income of $6,600 and $9,000.
-- 5 percent on taxable income of $9,000 and $11,600.
-- 6 percent on taxable income of $11,600 and $14,900.
-- 6.9 percent on taxable income of $14,900 and above.
Montana tax returns are due on April 15 or the next business day if that date falls on a weekend or holiday.
Many Montana taxpayers may find they are eligible for one or more of the state's many individual income tax incentives.
Sales tax
Montana has no sales tax at either the state or local levels.
Personal and real property taxes
In Montana, household goods are exempt from property taxes. However, property taxes are assessed on livestock, farm machinery, heavy equipment, automobiles, trucks and business equipment.
The amount of property tax owed is not determined solely by the property's value. The property's value is multiplied by a tax rate, set by the Montana Legislature, to determine its taxable value. The taxable value is then multiplied by the mill levy established by various taxing jurisdictions -- city and county government, school districts and others. Local revenue office locations are listed here.
Montana property owners can have their property taxes reduced if they meet certain qualifications. To receive the credit, Form PPB-8 must be filed with the local Department of Revenue office in the county where the property is located.
Montana property owners who sustained fire-related or other disaster losses may be eligible for property tax relief or an income tax filing extension.
Inheritance and estate taxes
Montana's inheritance tax was repealed on Dec. 31, 2000.
Montana's estate tax is equal to the maximum credit allowed against the federal estate tax. Since federal tax-law changes have eliminated the state credit for deaths occurring in 2005, no Montana estate tax is imposed and no estate tax return is required for deaths occurring after Jan. 1, 2005.
Other Montana tax facts
Montana offers its residents an assortment of tax incentives, ranging from a credit for installing alternative energy or geothermal systems to tax relief for paying certain expenses of an elderly family member.
Montana also provides taxpayers several ways to contribute to nonprofit groups with tax form check-offs.
Free filing of state forms is available to some Montana residents at Montana Free File.
Montana does not assess tax on intangible personal property.
For more information regarding state taxes, residents may contact the Montana Department of Revenue at (406) 444-6900 or at its Web site.
To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.
  

-- Updated: Feb. 4, 2008

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