How does Montana’s tax code compare? Montana has a graduated state individual income tax, with rates ranging from 4.70 percent to 5.90 percent. Montana has a 6.75 percent corporate income tax rate. Montana does not have a sales tax. Montana has a 0.69 percent effective property tax rate on owner-occupied housing value.
Montana does not have an estate tax or inheritance tax. Montana has a 33.75 cents per gallon gas tax rate and a $1.70 cigarette excise tax rate. The State of Montana collects $5,065 in state and local tax collections per capita. Montana has $5,185 in state and local debt per capita and has a 73 percent funded ratio of public pension plans. Montana’s tax system ranks 5th overall on the 2025 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Montana is no exception. The first step towards understanding Montana’s tax code is knowing the basics. How does Montana collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: How Does Your State Compare?
Subscribe to get insights from our trusted experts delivered straight to your inbox.
Subscribe
Get facts about taxes in your state and around the U.S.
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.
115 min read
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.
2 min read
Tax burdens rose across the country as pandemic-era economic changes caused taxable income, activities, and property values to rise faster than net national product. Tax burdens in 2020, 2021, and 2022 are all higher than in any other year since 1978.
24 min read
Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
8 min read
Graduated corporate rates are inequitable—that is, the size of a corporation bears no necessary relation to the income levels of the owners.
7 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).
9 min read
