Income Tax for Montana (2026)

How This Calculator Works in Montana

This calculator applies Montana's 2026 tax brackets and rates to estimate your state income tax liability. Enter your income and filing status to see your marginal rate, effective rate, and estimated tax owed.

Montana Overview

Montana levies a progressive income tax with a top rate of 6.75% and is notable for two features: it has no sales tax (one of five states), and it allows a deduction for federal income taxes paid (one of six states). These provisions make Montana's effective tax rate meaningfully lower than the statutory rates suggest. The state does not tax Social Security benefits and recently simplified its bracket structure.

How Montana Compares

Montana's top income tax rate of 6.75% compares to Idaho at 5.8% and Wyoming at 0%. The rate differences can meaningfully impact take-home pay for workers near state borders.

Montana's income tax rate of 6.75% compares to a national average of approximately 5.04%. This is above the national average.

Tips for Montana Residents

• 1Montana's top income tax rate is 6.75% and the state allows a deduction for federal income taxes paid — one of only six states with this provision.
• 2Montana has no sales tax, joining only four other states (Oregon, New Hampshire, Delaware, and Alaska) in this distinction.
• 3The combination of no sales tax plus the federal tax deduction gives Montana a lower effective tax rate than the statutory rates suggest.
• 4Montana does not tax Social Security benefits and provides partial exemptions for pension and retirement income.
• 5Property taxes in Montana are moderate (about 0.83% average effective rate), and the state offers property tax assistance programs for seniors and disabled veterans.

Frequently Asked Questions