Regular readers of Tax Foundation reports know that we publish estimates of the distributional impact of federal tax changes: that is, we estimate how a tax reform might affect the after-tax incomes of taxpayers at...
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 individual income tax system consists of seven brackets with a top rate of 6.9%. The top rate ranks 14th highest among states levying an individual income tax. Montana's state and local tax collections per person were $1,031 in 2013, which ranked 24th highest 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 22nd highest among states levying a corporate income tax. Montana's state and local corporate income tax collections per person were $169 in 2013 which ranked 14th 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 does not levy additional local sales taxes. Montana's state and local governments collect $0 per person in general sales taxes and $560 per person in excise taxes, for a combined figure of $560, which ranks 48th highest nationally. Montana's gasoline tax stands at 27.75 cents per gallon, 27th highest nationally, while its cigarette tax stands at $1.70, 19th 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 $1,407 per person in property taxes in 2013, which ranks 20th nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 17th in Montana
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Montana taxpayers have to work until April 17th (20th earliest nationally) to pay their total tax bill.
Montana's State and Local Tax Burden Ranks 38th
Montana's 2012 tax burden of 8.7% ranks 38th highest in the nation, and is below the national average of 9.9%. Montana's taxpayers pay $3,389 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 2016 Business Tax Climate Index Ranks 6th
Montana ranks 6th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (23rd), individual income taxes (20th), sales taxes (3rd), unemployment insurance taxes (18th), and taxes on property (9th), including residential and commercial property.
State Business Tax Climate Index (full study)
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