Last week, the Tax Policy Center held an event called “Measuring the Distribution of Federal Spending and Taxes.” At this event, Gerald Prante presented his findings from the Tax Foundation study called “A Distributional...
The facts on Montana’s Tax Climate
6.9%Individual Income TaxTop rate
6.75%Corporate Income Tax
0%Sales and Excise Taxes
Montana's Individual Income Tax System
Montana's personal income tax system consists of seven brackets and a top rate of 6.9%. That rate ranks 15th highest among states levying an individual income tax. Montana's income tax collections per person were $724 in 2010 which ranked 21st lowest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Montana's Corporate Income Tax System
Montana's corporate income tax system consists of a flat rate of 6.75%. That rate ranks 23rd lowest among states levying an corporate income tax. Montana's corporate tax collections per person were $94 in 2010 which ranked 23rd lowest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Montana Sales and Excise Taxes
Montana levies a 0% general sales or use tax on consumers, which is below the national median of 6%. Montana's state and local governments collect $0 per person in general sales taxes and $546 per person in excise taxes, for a combined figure of $546, which ranks 3rd lowest nationally. Montana's gasoline tax stands at 27.8¢ (22nd highest nationally), while its cigarette tax stands at $1.7 (16th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Montana Property Tax Collections Average
Montana's state and local governments collected approximately $1296 per person in property taxes, which ranks 25th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 10th in Montana
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, Montana taxpayers worked until April 10th (19th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Idaho, April 9th (ranked 15th earliest nationally); Wyoming, April 16th (ranked 17th latest nationally); North Dakota, April 18th (ranked 14th latest nationally); and South Dakota, April 4th (ranked 6th earliest nationally).
Montana's State and Local Tax Burden Below National Average
Montana's 2010 tax burden of 8.61% ranks 13th lowest out of 50 states, and is below the national average of 9.9%. Montana's taxpayers pay $3089 per capita in state and local taxes.
Montana's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Montana's 2014 Business Tax Climate Index Ranks 7
Montana ranks 7th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Idaho, 18th, Wyoming, 1st, North Dakota, 28th, and South Dakota, 2nd.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
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