Does Montana have a state income tax?

Yes. Montana has a state income tax with a top rate of 5.9%.

How much is Montana state tax on a $100,000 salary?

On a $100,000 salary in Montana, state income tax is approximately $4,740. Your estimated total take-home pay is $74,440/year.

What other taxes does Montana have?

Montana has 0% state sales tax (one of 5 no-sales-tax states with AK, DE, NH, OR). Property tax averages 0.74% effective — moderate. Montana has no estate tax. Montana allows federal income tax to be DEDUCTED on the state return — uniquely beneficial (only 5 states have this: AL, IA, LA, MO, MT). Montana standard deduction lower than federal but federal-tax-deductibility helps high earners meaningfully.

How does Montana compare to other states for taxes?

Montana's top rate of 5.9% compares unfavorably — above the national median for state income taxes.

What is Montana's income tax rate?

Montana has 2 brackets: 4.7% up to $20,500 and 5.9% top above $20,500 (single). Most professionals pay close to 5.9% effective. Post-2024 reform simplified the prior 7-bracket progressive structure. Federal income tax deductibility on MT return reduces effective rate by ~1-2% for higher earners.

What is the Montana sales tax?

0%. Montana is one of only 5 no-sales-tax states (with AK, DE, NH, OR). This makes large purchases (vehicles, electronics, appliances) significantly cheaper. Combined with the federal-tax-deductible benefit, Montana's overall tax burden for working professionals is genuinely competitive with low-tax flat-rate states.

Why is Bozeman growing?

Bozeman has been one of the fastest-growing US small cities post-2020. Drivers: Yellowstone tourism + outdoor industry (Patagonia, Simms Fishing, Mystery Ranch HQ), Montana State University, growing tech presence (Onx Maps, Bozeman tech startups), and remote-work migration from coastal markets. Housing has appreciated dramatically — median home values $700K-$1M+.

Is Montana retirement-friendly?

Moderately. Income tax 5.9% top applies to retirement income (no special exemption). No estate tax, no inheritance tax, 0% sales tax. Property tax 0.74% — moderate. Federal-tax-deductibility helps. The Mountain West lifestyle + outdoor activities + scenic beauty are genuine quality-of-life advantages. Caveats: cold winters, distance from major medical centers outside Billings + Missoula.

State Tax Guide

Montana State Income Tax Guide (2026)

Montana has a 2-bracket simplified income tax topping at 5.9% (post-2024 reform from prior progressive structure) — combined with 0% sales tax, distinctive Mountain West lifestyle, and growing Bozeman tech corridor.

Top State Rate

5.9%

$100k Take-Home

$74,440

/year (single)

State Tax on $100k

$4,740

single filer

Montana Income Tax Brackets (2026)

Marginal Rate	Taxable Income (Single Filer)
4.7%	$0→$20,500
5.9%	$20,500→All income above $20,500

Each rate applies only to income within that bracket. Your effective rate is the average across all brackets — meaningfully lower than your top marginal rate.

Standard deduction: $5,500 single / $11,000 married filing jointly

Brackets reflect the most recently published schedules. Some states inflation-index thresholds annually — specific 2026 amounts may shift slightly. Verify with your state's Department of Revenue before filing.

$100,000 Salary in Montana — Full Tax Breakdown

Category	Annual	Monthly
Gross Salary	$100,000	$8,333
Federal Tax	−$13,170	−$1,098
FICA (SS + Medicare)	−$0.00	−$0.00
Montana State Tax	−$4,740	−$395
Take-Home Pay	$74,440	$6,203

Assumes single filing status, standard deduction, no 401(k) or HSA contributions. 2026 tax year.

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The 30-second version

1.Montana has 2 brackets topping at 5.9% (above $20,500 single).
2.0% state sales tax — among 5 no-sales-tax states.
3.Federal tax DEDUCTIBLE on MT return — uniquely beneficial (only 5 states with this).
4.Bozeman growth — outdoor industry HQ (Patagonia + Simms + Mystery Ranch), MSU, tech startups, Yellowstone tourism.
5.Major employers: Patagonia + Simms Fishing + Mystery Ranch (Bozeman outdoor industry), Bozeman Health, Montana State University, University of Montana (Missoula), Billings Clinic, Glacier National Park (NPS), state government (Helena), oil & gas (Bakken adjacent).

Why you can trust these numbers

Numbers reflect 2026 IRS federal brackets, FICA caps, and Montana Department of Revenue 2-bracket structure. Montana conforms to federal AGI starting point but uniquely allows federal income tax DEDUCTION on the state return. Standard deduction $5,500 single (smaller than federal $16,100) but federal-tax-deductibility offsets meaningfully at higher incomes.

Sources: federal brackets + standard deduction from IRS Rev. Proc. 2025-32; state brackets verified against the Tax Foundation 2026 State Income Tax Rates compilation and the Montana Department of Revenue's published 2026 schedule.

Our honest opinion (which is just an opinion)

Montana combines distinctive lifestyle assets (mountains, Yellowstone, outdoor industry) with structurally favorable tax features (0% sales tax + federal-tax-deductibility). The 5.9% top rate is moderate but the overall total tax burden is genuinely competitive for many professionals.

The case for Montana:

0% state sales tax — significant for large purchases
Federal tax deductible on state return — uniquely beneficial
Bozeman tech + outdoor industry growth corridor
Yellowstone + Glacier + outdoor lifestyle access
No estate tax, no inheritance tax
Strong Montana State University + University of Montana talent pipelines

The case against:

5.9% top rate above neighbors WY (0%), ID (5.3%), ND (1.95%)
Standard deduction $5,500 — small (federal-tax-deductibility offsets at higher incomes)
Bozeman housing has appreciated dramatically post-2020
Limited high-comp career mobility outside Bozeman + Billings + Missoula
Cold winters significant lifestyle factor
Wildfire risk increasingly real long-term residential consideration

Honest take: Montana is genuinely competitive for outdoor industry workers (Patagonia, Simms, Mystery Ranch), Bozeman tech professionals, MSU faculty/staff, healthcare workers at Billings Clinic + Bozeman Health, and lifestyle-prioritizing professionals. The 0% sales tax + federal-tax-deductibility combination is structurally distinctive.

Sources & further reading

A few honest notes

Not personal tax, legal, or financial advice. Verify with a licensed CPA, EA, or tax attorney.
Tax law changes. This guide reflects 2026 IRS schedules and current Montana Department of Revenue rules.
Federal-tax-deductibility is uniquely valuable — file MT Form 2 carefully to claim.
Property tax estimates vary by county. Bozeman/Gallatin and Missoula counties differ.
Wildfire risk affects insurance increasingly.
No client relationship is created by reading this page.

Last updated April 2026 with 2026 IRS schedules and current Montana Department of Revenue guidance.