Montana has a graduated state individual income tax, with rates ranging from 4.70 percent to 5.65 percent. Montana has a flat 6.75 percent corporate income tax rate. Montana does not have a state sales tax. Montana has a 0.61 percent effective property tax rate on owner-occupied housing value. Montana does not have an estate tax or inheritance tax. Montana’s gas tax is 33.75 cents per gallon, and its cigarette excise tax is $1.70 per pack of 20 cigarettes.
Montana raises tax revenue primarily through individual income taxes (34.6 percent of total state and local tax revenue), property taxes (34.4 percent), and other taxes (26.4 percent). Montana collects $5,870 in state and local tax collections per capita, carries $5,261 in state and local debt per capita, and has a 78 percent funded ratio of public pension plans. Montana’s tax system ranks 6th overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Montana is no exception. Use the tabs below to compare Montana taxes with other states and to see how Montana raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
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Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
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The significant disparity in tax rates across states underscores the complex tax and regulatory environment governing distilled spirits.
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From coast to coast, lawmakers are embracing wealth and millionaires’ taxes. Many of these proposals will face their ultimate test at the ballot box this November, and we should be rooting for these measures to fail.
Millions of Americans, along with significant amounts of income and economic activity, are moving from high-tax states to those with more competitive tax systems and lower overall costs of living.
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Nearly half of US states regulate and tax recreational markets, and only 10 states still lack a comprehensive medical marijuana program.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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