Montana state taxes

Bankrate's 2009 Tax Guide

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Montana

By Bankrate.com

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 $2,600 of taxable income -- 2 percent on taxable income between $2,601 and $4,600 -- 3 percent on taxable income between $4,601 and $7,000 -- 4 percent on taxable income of $7,001 and $9,500 -- 5 percent on taxable income of $9,501 and $12,200 -- 6 percent on taxable income of $12,201 and $15,600 -- 6.9 percent on taxable income of $15,601 and above
	Montana tax returns are due on April 15 or the next business day if that date falls on a weekend or holiday.
	Effective Jan. 1, 2008, royalty payments made to owners of Montana mineral rights are subject to state income tax withholding if certain thresholds are met. This amount is in addition to production taxes that also are taken out of royalty payments.

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 on the state's Department of Revenue Web site.
	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	Montana's inheritance tax was repealed on Dec. 31, 2000.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 several ways to contribute to nonprofit groups with tax form checkoffs.
	Free filing of state forms is available to some Montana residents at Montana Free File.
	Montana does not assess tax on intangible personal property.