Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and Montana state tax rates. Always consult a qualified tax professional.
Montana income tax overview
Montana simplified its income tax system significantly in 2024, consolidating what had been seven brackets down to just two — 4.7% and 5.9% — as part of a broader tax reform effort. Montana does not have a state sales tax, relying instead on income tax and property tax for the bulk of state and local revenue. The state offers a partial Social Security exemption tied to federal taxation rules, generally exempting Social Security for lower and middle income retirees. Montana's stunning natural landscapes have driven significant population growth from out-of-state residents, particularly to areas like Bozeman and the Flathead Valley, which has put upward pressure on housing costs even as the state's tax burden has declined.
2026 Montana income tax rates
Tax rate
Income range (single filer)
4.7%
$0 – $20,500
5.9%
Over $20,500
Worked example: $75,000 salary in Montana
A $75,000 salary in Montana results in approximately $4,150 in state income tax (effective ~5.5%), plus $12,580 federal tax, $4,650 Social Security, and $1,088 Medicare. Annual take-home is approximately $52,532, or $2,020 bi-weekly.
Key facts: 5.9% top rate (simplified to 2 brackets in 2024) · No state sales tax · Partial Social Security exemption
Frequently asked questions — Montana income tax
Montana consolidated from seven income tax brackets down to just two — 4.7% and 5.9% — effective the 2024 tax year, as part of a broader simplification and tax relief package.
No. Montana is one of five states with no general state sales tax, which is a significant advantage for residents and shoppers despite the state's income tax.
Montana generally follows federal rules for Social Security taxation, meaning lower and middle income retirees typically owe little to no tax on Social Security benefits.
No. Montana cities and counties do not levy local income taxes.
Significant in-migration from California, Washington, and other states — drawn by Montana's natural beauty, outdoor recreation, and relatively favorable tax structure — has driven substantial increases in housing demand, particularly in Bozeman and the Flathead Valley.
Compare Montana to other states
Use our US income tax calculator to compare your take-home pay across all 50 states. You may be surprised how much location affects your net income.