Montana Income Tax Rates 2025
Montana has a progressive income tax system with 2 brackets ranging from 4.7% to 5.9%. The state recently simplified its tax structure from multiple brackets to just two.
Tax Type
Progressive
Rate Range
4.7% – 5.9%
Brackets
2
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Montana is only part of the equation — federal taxes apply too.
State Tax Ranking
At $75,000 income (single filer), Montana ranks #45 out of 51 states — where #1 is the lowest tax burden.
Best states to move to from Montana →Tax at Different Income Levels
| Income | State Tax | Effective Rate | Take-Home |
|---|---|---|---|
| $50,000 | $2,704 | 5.41% | $43,425 |
| $75,000 | $4,179 | 5.57% | $62,872 |
| $100,000 | $5,654 | 5.65% | $80,897 |
| $150,000 | $8,604 | 5.74% | $116,329 |
| $200,000 | $11,554 | 5.78% | $151,379 |
Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).
2025 Tax Brackets — Single Filer
| Taxable Income | Rate |
|---|---|
| $0 – $20,500 | 4.7% |
| Over $20,500 | 5.9% |
2025 Tax Brackets — Married Filing Jointly
| Taxable Income | Rate |
|---|---|
| $0 – $20,500 | 4.7% |
| Over $20,500 | 5.9% |
Tax Overview
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tax Planning Tip
In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Montana uses a progressive tax system where higher portions of income are taxed at higher rates. Montana does not have a general sales tax, making income tax its primary revenue source. The state does not tax Social Security benefits and has no local income taxes.
Property Tax & Cost of Living
Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.
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Frequently asked questions
What is Montana's income tax rate in 2025?
Montana has a progressive income tax with 2 brackets ranging from 4.7% to 5.9%. Your effective rate depends on your total taxable income.
Does Montana tax Social Security benefits?
Montana does not tax Social Security benefits at the state level.