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.
122 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
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?
9 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
18 min read
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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Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
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Wireless taxes and fees set a new record high in 2024.
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The latest IRS and Census data show that people and businesses favor states with low and structurally sound tax systems, which can impact the state’s economic growth and governmental coffers.
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States would do better to broaden the sales tax base to include currently exempt classes of final consumption than to impose disproportionate taxes on prepared foods.
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While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts—especially as a large number of major cities have combined rates of 9 percent or more.
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Property taxes are the primary tool for financing local governments and generate a significant share of state and local revenues.
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Though gas taxes are intended to serve as user fees and pollution deterrents, they vary widely across states. How does your state’s burden compare?
4 min read
According to recent reports, 72 percent of the current marijuana market in the US is illicit. Evidently, the federal criminalization of marijuana has failed to prevent its sale or consumption.
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As much as 98 percent of vaping products sold in the US are illicit. Most states levy an excise tax on vaping products, but these tax systems vary substantially. The result is a messy tax system covering largely illicit products, and no one knows whether taxes are being collected and remitted on most products sold nationwide.
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However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
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