Tax Foundation Forum: Making Sense of Profit Shifting has reached its midpoint. In this halftime report, we provide a synopsis of the first nine of the 18 interviews in the series. This two-part review summarizes the key...
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 14th highest among states levying an individual income tax. Montana's state and local income tax collections per person were $899 in 2012 which ranked 23rd 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 25th highest among states levying a corporate income tax. Montana's state and local corporate income tax collections per person were $132 in 2012 which ranked 23rd highest 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 5.95%. Montana's state and local governments collect $0 per person in general sales taxes and $552 per person in excise taxes, for a combined figure of $552, which ranks 2nd lowest nationally. Montana's gasoline tax stands at 27.8¢ (22nd highest nationally), while its cigarette tax stands at $1.7 (18th 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 $1377 per person in property taxes in 2012, which ranks 18th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 14th 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 2014, Montana taxpayers worked until April 14th (23rd earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Idaho, April 11th (ranked 15th earliest nationally); Wyoming, April 17th (ranked 21st latest nationally); North Dakota, April 25th (ranked 9th latest nationally); and South Dakota, April 4th (ranked 3rd earliest nationally).
Montana's State and Local Tax Burden Below National Average
Montana's 2011 tax burden of 8.6% ranks 13th lowest out of 50 states, and is below the national average of 9.8%. Montana's taxpayers pay $3137 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 2015 Business Tax Climate Index Ranks 6
Montana ranks 6th 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, 19th, Wyoming, 1st, North Dakota, 25th, and South Dakota, 2nd.
State Business Tax Climate Index (full study)
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