How much is Montana income tax?
Montana income tax at 3 levels of Montana taxable income — what is left after Montana's own deductions and exemptions. Local income taxes are not included.
| Taxable income | Single | Married filing jointly |
|---|---|---|
| $50,000 | $2,3744.7% effective · 5.65% marginal | $2,3504.7% effective · 4.7% marginal |
| $100,000 | $5,1995.2% effective · 5.65% marginal | $4,7484.7% effective · 5.65% marginal |
| $250,000 | $13,6745.5% effective · 5.65% marginal | $13,2235.3% effective · 5.65% marginal |
What are Montana's income tax brackets for 2026?
| Taxable income | Rate |
|---|---|
| Up to $47,500 | 4.7% |
| Over $47,500 | 5.65% |
| Taxable income | Rate |
|---|---|
| Up to $95,000 | 4.7% |
| Over $95,000 | 5.65% |
Source: MCA 15-30-2103 · MT DOR HB 337 schedule, checked September 11, 2026.
Can you deduct Montana income tax on your federal return?
The federal deduction for state and local taxes (SALT) is capped at $40,400 for 2026 — $20,200 if married filing separately — and the cap shrinks toward $10,000 once modified AGI passes $505,000. A single filer with $250,000 of Montana taxable income owes about $13,674 in Montana income tax — 34% of that cap before any property tax.
SALT cap workaroundsDoes Montana have a pass-through entity tax (PTET)?
Yes. A partnership or S corporation can elect to pay Montana income tax at the entity level. The business deducts it federally, so that state tax is not limited by the SALT cap, and the owners claim a Montana credit or exclusion for it. Deductsy's plan treats March 15 as the Montana election or first-payment deadline; it is approximate, so confirm it with Montana before relying on it.
PTET savings calculatorDoes Montana allow the QBI deduction?
No. Montana does not allow the federal qualified business income (§199A) deduction, so Montana tax is figured on pass-through business income before it.
How the QBI deduction phases outAre HSA contributions deductible in Montana?
Yes. Montana follows the federal treatment, so an HSA contribution — up to $4,400 with self-only coverage or $8,750 with family coverage for 2026 — lowers Montana taxable income as well as federal.
Does Montana give a tax break for 529 plan contributions?
Yes. Montana lets you deduct up to $3,000 a year of contributions to any state's 529 plan ($6,000 on a joint return). Income limits, per-beneficiary caps and carryforwards differ by state, so check the plan's rules.
529 plan tax savings calculatorWhich states have tax reciprocity with Montana?
Montana has mutual agreements with North Dakota: neither state taxes the other's residents on wages earned there, so those wages are taxed only where you live. Give your employer the exemption certificate and the state you work in stops withholding.
What is the property tax rate in Montana?
Montana's average effective property tax rate is 0.72% — tied for the 32nd highest of 51 jurisdictions and 80% of the national average of 0.9%. That is about $720 a year for every $100,000 of home value; the rate varies widely by county and school district.
Itemize or take the standard deduction?How much does an LLC cost to keep in Montana each year?
Deductsy budgets about $20 a year for a Montana LLC — the annual report fee or minimum franchise tax, with a fee due every two years counted at half. Fees change, so confirm with Montana's business filing office.
Montana S-corp tax calculatorHow do Montana taxes compare with neighboring states?
| State | Top income tax rate | Income tax on $100,000 (single) | Property tax (avg) |
|---|---|---|---|
| Montana | 5.65% | $5,199 | 0.72% |
| Idaho | 5.3% | $5,045 | 0.49% |
| North Dakota | 2.5% | $983 | 0.99% |
| South Dakota | None | $0 | 1.06% |
| Wyoming | None | $0 | 0.57% |
On $100,000 of taxable income a single filer's Montana income tax is $5,199 — more than in all 4 neighboring states. The lowest is South Dakota at $0; the highest is Idaho at $5,045. Montana's average property tax rate is higher than in 2 of 4.
Income tax is each state's own tax on the same state taxable income; local income taxes are not included.
More Montana tax notes
- Montana has no general sales tax.
Tax moves that matter most for Montana
If you own an S corporation, partnership or multi-member LLC, Montana's PTET election moves the Montana income tax on that profit to the business, where it is deductible federally and outside the SALT cap.
An S-corp election can cut self-employment tax once profit is large enough to pay yourself a reasonable salary and still cover payroll and filing costs. The Montana calculator adds Montana's own entity fees and taxes to that breakeven.
With 1099 income, a Solo 401(k) can take up to $72,000 a year (2026) — usually more than a SEP-IRA at the same income. Contributions lower both federal and Montana income tax.
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