Montana state taxes at a glance
| Individual income tax | Graduated (bracket) income tax |
|---|---|
| Rate structure | Two brackets for 2026: 4.7% up to $47,500 (single) or $95,000 (joint), and 5.65% above, with a further cut to 5.4% scheduled for 2027. Montana has no general sales tax. Verify current-year figures. |
| Tax agency | Montana Department of Revenue |
| Main individual return | Form 2 (residents, nonresidents and part-year residents) |
| Local income taxes | No local income taxes. Some resort communities charge a local resort tax. |
| Sales tax | No general statewide sales tax. Some resort areas levy a local resort tax on visitors’ purchases, and certain items such as lodging and rental cars have their own taxes. |
| Property tax | Assessed by the state and billed by counties; Montana has changed property tax classes and relief in recent years, including rate tiers for owner-occupied homes and a rebate program. Check the Department for current rules. |
| Retirement & Social Security | Montana taxes Social Security benefits to the extent they are taxable federally, so benefits may be taxed if AGI exceeds the federal thresholds. |
Verify current-year figures: state rates, brackets, credits and filing rules change. Treat this page as a starting orientation and confirm details on the Montana Department of Revenue website.
How Montana income tax works
Montana’s 2026 income tax has two brackets, following 2025’s House Bill 337: 4.7% up to $47,500 for single filers (or married filing separately), $71,250 for head of household and $95,000 for married joint filers, and 5.65% above those amounts, according to the Department of Revenue. The top rate falls further to 5.4% in 2027, per Tax Foundation. The state uses the federal standard deduction as part of its starting point, so Montana’s tax changes with federal deduction rules; Tax Foundation lists a $16,100 single standard deduction for 2026.
What Montana does not have is a general sales tax. It is one of five states with no statewide sales tax (Tax Foundation lists Alaska, Delaware, Montana, New Hampshire and Oregon), but many resort communities levy a local resort tax on certain purchases, and lodging and rental cars carry specific taxes. This mix means visitors and residents in tourist towns can see taxes on meals or lodging even though there is no tax on groceries or most retail goods. If you sell goods or services in Montana, check the Department’s guidance on whether any local or special taxes apply.
Retirees should note that Montana treats Social Security differently from most low-tax states: the state taxes the portion of benefits that is taxable federally, which, according to news reports citing 2026 thresholds, affects single filers with AGI above about $25,000 and joint filers above about $32,000. Check the instructions for the Montana-specific subtractions available to older filers. For the federal side, see is Social Security taxable? Montana has reciprocity with North Dakota per Tax Foundation.
Filing your Montana return and free options
The Department of Revenue lists Free File Alliance partners that can prepare your federal and Montana returns for free if you meet each provider’s eligibility rules; its page names providers such as 1040.com, FreeTaxUSA, OLT, TaxAct, FileYourTaxes and TaxSlayer (availability varies by year). Montana’s Taxpayer Access Point (TAP) is mainly for payments and certain account services; eligible older homeowner and renter credit filers who have no other filing requirement can file Form 2EC through TAP. Always start from the Department’s page so your state return is included.
Montana’s filing deadline matches the federal deadline. See extensions explained for extension rules, our free filing hub for federal options, and state refund status for tracking your refund.
For the federal side, see our guides to free federal filing options and the complete guide to filing taxes.
Things Montana residents often ask about
- Two brackets, widening lower bracket: HB 337 widened the lower bracket and reduces the top rate again in 2027.
- No general sales tax: but check local resort taxes in tourist towns, and special taxes on lodging and rental cars.
- Social Security follows the federal taxable portion: Montana taxes the part of benefits that is federally taxable, with available state subtractions.
- Elderly homeowner/renter credit: Form 2EC can be filed through TAP for eligible filers.
- North Dakota reciprocity: residents of North Dakota working in Montana generally file only at home.
Official Montana links
- Montana Department of Revenue
- Montana: Free File Alliance partners
- Montana: HB 337 individual income tax changes
- Federation of Tax Administrators: State tax agencies
Frequently asked questions
Does Montana have a sales tax?
No general statewide sales tax. Some resort communities levy a local resort tax, and lodging and rental cars have their own taxes.
What are Montana’s income tax rates?
For 2026, 4.7% up to $47,500 (single) or $95,000 (joint) and 5.65% above, with a scheduled reduction to 5.4% in 2027.
Does Montana tax Social Security?
Yes, to the extent benefits are taxable at the federal level, subject to available Montana subtractions.
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.