Montana State Taxes: A Simple Guide

🏔️Montana state income tax

Montana taxes personal income using its own brackets and rules, separate from federal law. In general:

• •Residents with income above certain thresholds must file a Montana individual income tax return.
• •Nonresidents may need to file if they earn Montana-source income.
• •Montana's definitions of taxable income, deductions, and credits differ from federal rules.

A typical resident will file a federal Form 1040 and a Montana return if they meet filing requirements.

✅No general statewide sales tax

Montana is one of the states that does not have a general statewide sales tax on most retail purchases. That means:

• ✓You usually will not see a statewide sales tax at checkout.
• •However, there may be specific local or special taxes (for example, in resort areas or on certain types of transactions).

Note: This guide focuses on individual basics and does not cover all special local or industry-specific taxes.

🏡Property taxes

Property taxes in Montana are imposed by counties, cities, school districts, and other local entities, based on the assessed value and class of real property (such as homes and land).

• •Homeowners receive tax bills from their county or local office.
• •Property taxes help fund schools, roads, and other local services.
• •Some taxpayers may qualify for property tax relief programs or special classifications.

🔗Putting Montana taxes together

A typical Montana resident may typically deal with:

• •Federal income tax (Form 1040)
• •Montana state income tax
• ✓No broad statewide sales tax on purchases
• •Local property taxes if they own a home

Once you understand core ideas like how to file taxes, it's easier to see how Montana's structure (income + property, but no general sales tax) fits together.