Montana State Tax
Montana Income Tax
According to the state tax code, Montana residents must pay income tax according to their gross income from all sources. The personal income tax rates in Montana are arranged into seven progressive marginal income tax brackets with a maximum of 6.9% rate for incomes over $15,600. There are no expanded brackets for couples filing jointly.
Taxpayers must accomplish tax Form 2 and file their income tax returns to the Montana Department of Revenue on or before April 15th of each year (except when it is the weekend or a holiday).
Any business or corporation that earns income from sources in Montana is subject to corporate income tax. The corporate income tax is the business equivalent of personal income tax. Montana levies a flat rate of 6.75%- meaning that all companies pay this rate regardless of their gross income.
Montana Sales Tax
There is no state sales tax in Montana, although municipalities and cities are allowed to impose up to 3% local sales tax. Some areas also levy special sales taxes on tourism-related industries. The additional sales tax rate for hotels and room rentals is 7%. Rental cars are levied 4% special sales tax on top of the local sales tax.
Montana Property Tax
Residents must pay property tax in Montana. Real properties and automobiles are subject to ad valorem taxes. The local state assessor determines the property tax rate according to its fair market value.
The average property tax rate in Montana is 0.83%. The property tax collected amounts to 2.79% of the residents’ annual income.