Income Tax
Montana's top state individual income tax rate is 5.9%, applied to income above a modest threshold following 2021-2023 tax reforms.
Individual income tax collections
1990–2025Census State Government Tax Collections (FRED MTINCTAX).
| Indicator | Montana | U.S. |
|---|---|---|
| Top marginal income tax rate % | 5.9 | 5 |
- •Montana simplified its income tax brackets from seven to two between 2021 and 2024.
Property Tax
Montana's effective property tax rate averages about 0.74% of home value, close to the national median.
State-level property tax collections
1990–2025Census State Government Tax Collections; excludes local property taxes (FRED MTPROPTAX).
| Indicator | Montana | U.S. |
|---|---|---|
| Effective property tax rate % | 0.74 | 0.9 |
- •Rapid home value growth has pushed Montana property tax bills up even though rates remain moderate.
Sales Tax
Montana has no general state or local sales tax, one of only five U.S. states without one.
| Indicator | Montana | U.S. |
|---|---|---|
| Average combined sales tax % | 0 | 6.6 |
- •Some Montana resort towns like Whitefish levy a local resort tax in lieu of general sales tax.
Tax Burden
Montana's overall state and local tax burden is about 8.4% of income, among the lower rates nationally, aided by the absence of a general sales tax.
State tax collections per resident
1990–2025Census tax collections (MTTOTLTAX) divided by Census resident population (MTPOP).
| Indicator | Montana | U.S. |
|---|---|---|
| Overall tax burden % | 8.4 | 9.9 |
- •Montana is one of only five states with no statewide general sales tax.
Tax Revenue
Montana collected approximately $4.2 billion in state tax revenue in fiscal year 2023, driven mainly by individual income and property taxes.
State tax collections
1990–2025Census Annual Survey of State Government Tax Collections, fiscal years (FRED MTTOTLTAX).
| Indicator | Montana | U.S. |
|---|---|---|
| State tax revenue (billions) | 4.2 | 2100 |
- •Coal and oil severance taxes remain an important, if volatile, source of Montana state revenue.