Montana has a progressive state income tax, with the top rate at 6.9%. There is no sales tax, and property taxes are below average.
Who Must File?
Full-time residents, part-year residents, and nonresidents with Montana property or business income must file if income exceeds the thresholds based on filing status and age.
Rebates and Withholding
Rebates:
- 2021 income tax: up to $1,250 for individuals, $2,500 for married couples filing jointly. Eligibility requires full- or part-year residents who paid 2020 and 2021 taxes on time.
- 2022 and 2023 property taxes: see details from the Department of Revenue.
Withholding:
Employers paying $1,000+ in annual wages must register and withhold income tax based on payroll period, gross pay, and W-4 allowances. Additional withholding is optional.
Exemptions and Tax Rates
Exemptions:
- National Guard and Reserve
- Native Americans
- Nonresident military spouses
- North Dakota residents
Use exemption forms.
Tax rates:
| Income | Rate |
|---|---|
| On the first $3,100 | 1% |
| $3,100-$5,300 | 2% |
| $5,300-$8,200 | 3% |
| $8,200-$11,100 | 4% |
| $11,100-$14,000 | 5% |
| Over $14,000 | 6% |
| Over $17,900 | 6.9% |
NOL Carryback:
- Individuals report on Form 2, Schedule VIII, Part II.
- Trusts and estates report on 2017 Form FID-3 statement.
Montana has an income tax reciprocity agreement with North Dakota and allows a 3% earned income tax credit. The corporate tax is 6.75%.
Be aware that the IRS and the Montana State Tax Agency require you to e-file a Federal Income Tax Return at the same time you e-file a Montana State Tax Return. Active duty military personnel can access free federal tax preparation through IRS Free File.
Montana’s Republican-controlled Legislature directed funds towards tax rebates. Lawmakers passed rebates for income and property taxes.
Filing Requirements
Who must file a California return?
- Single under 65: over $18,235
- Married filing jointly: over $36,470
- Residents regardless of income
Do I have to file a Montana state tax return?
Yes, if federal gross income meets the threshold and you lived or earned income in Montana during the tax year.
Amending Returns
To amend your return, download Form 2 and complete Form AMD. Attach it to the amended return.
Online Payments
Can I pay my Montana state taxes online?
Yes, make payments online using the TransAction Portal (TAP). Requesting a payment plan requires login.