Laws Lawyers Find Laws Legal Forms State Laws Bills
Home » Find Laws » Laws » Montana State Tax

Montana State Tax

Listen
The local and state tax burden in Montana, when accounting for state and local taxes, totals 8.7%, which is significantly below the national average of 9.8%.Like other states, there are excise taxes of liquor, beer and cigarettes, as well as vehicle taxes.There are also property taxes that must be given consideration.Tax returns are due on April 15.Montana state sales tax – There is no state sales tax in Montana. Montana personal income taxThere are seven income tax brackets:- 1% on the first $2,600 of taxable income. - 2% between $2,601 and $4,600. - 3% between $4,601 and $6,900. - 4% between $6,901 and $9,400. - 5% between $9,401 and $12,100. - 6% between $12,101 and $15,600. - 6.9% between $15,601 and above.Most Montana residents will pay the top 6.9% state tax rate.Montana excise taxesTaxes will be assessed on vehicles, alcohol, tobacco, gasoline and are in addition to federal excise taxes.- $1.70 per package of 20 cigarettes- $8.62/gallon on spirits- $1.06 per gallon on table wine- $.14 per gallon of beer- $.278/gallon on gasolineThere is a 4% tax on rental vehicles that incorporates taxes on campgrounds and accommodations.This is to provide infrastructure in tourist areas without relying solely on property taxes.Montana excise taxes are comparatively high due to an absence of state sales taxes.Montana inheritance tax Only federal laws are in effect.Estate laws have not been enforceable since the federal government eliminated state credits in 2005.The Montana inheritance tax was repealed in the year 2000.Montana payroll taxesState Disability Insurance – noneState Unemployment Insurance – 1% to 6.30%, wage base is $27,000 for 2012.Contribution rates by employer:- Government ranges from 0.06% to 1.5%- Agricultural, forestry, and fishing employers use 2.68%- Mining employers use 2.28%- Construction employers use 3.18%- Manufacturing employers use 2.08%- Transportation, communications, and public utilities employers use 1.98%- Wholesale trade employers use 1.78%- Retail trade employers use 1.78%- Finance, insurance, and real estate employers use 1.68%- Services employers use 1.98%All other employers contribute 3.18%State minimum wage is 7.35/hrMontana state property taxProperty tax is assessed on equipment, vehicles and livestock.The amount of taxation is determined by the property value times the tax rate set by the legislature.Montana state corporate taxThere is a flat tax of 6.25% on all corporate income. ExemptionsThere are personal exemptions from taxation that range from $1,780 - $4,010 for individuals and $3,560 - $8,020 for couples.Dependents are subject to a $2,140 exemption.Those 65 and older receive a $2,040 exemption.You may make full deductions for federal taxes paid.Those single as well as 65 and older can deduct $1,600 in interest income from taxation.Married persons over 65 can deduct $800.Social security benefits may be taxable, depending on state law.Railroad retirement benefits are 100% exemptible.There are reductions and exemptions on property taxes for the elderly and disabled veterans.There is an income tax credit for child and dependent care expenses.
Font Size: AAA
Loading...
  • Play
  • Pause
  • Volume:
  • Mute
  • Half
  • Max
  • Montana State Tax


    The local and state tax burden in Montana, when accounting for state and local taxes, totals 8.7%, which is significantly below the national average of 9.8%. Like other states, there are excise taxes of liquor, beer and cigarettes, as well as vehicle taxes. There are also property taxes that must be given consideration. Tax returns are due on April 15.

    Montana state sales tax – There is no state sales tax in Montana.

    Montana personal income tax

    There are seven income tax brackets:
    - 1% on the first $2,600 of taxable income.
    - 2% between $2,601 and $4,600.
    - 3% between $4,601 and $6,900.
    - 4% between $6,901 and $9,400.
    - 5% between $9,401 and $12,100.
    - 6% between $12,101 and $15,600.
    - 6.9% between $15,601 and above.

    Most Montana residents will pay the top 6.9% state tax rate.

    Montana excise taxes

    Taxes will be assessed on vehicles, alcohol, tobacco, gasoline and are in addition to federal excise taxes.

    - $1.70 per package of 20 cigarettes

    - $8.62/gallon on spirits
    - $1.06 per gallon on table wine
    - $.14 per gallon of beer

    - $.278/gallon on gasoline

    There is a 4% tax on rental vehicles that incorporates taxes on campgrounds and accommodations. This is to provide infrastructure in tourist areas without relying solely on property taxes. Montana excise taxes are comparatively high due to an absence of state sales taxes.

    Montana inheritance tax

    Only federal laws are in effect. Estate laws have not been enforceable since the federal government eliminated state credits in 2005. The Montana inheritance tax was repealed in the year 2000.

    Montana payroll taxes

    State Disability Insurance – none
    State Unemployment Insurance – 1% to 6.30%, wage base is $27,000 for 2012.

    Contribution rates by employer:
    - Government ranges from 0.06% to 1.5%
    - Agricultural, forestry, and fishing employers use 2.68%
    - Mining employers use 2.28%
    - Construction employers use 3.18%
    - Manufacturing employers use 2.08%
    - Transportation, communications, and public utilities employers use 1.98%
    - Wholesale trade employers use 1.78%
    - Retail trade employers use 1.78%
    - Finance, insurance, and real estate employers use 1.68%
    - Services employers use 1.98%

    All other employers contribute 3.18%

    State minimum wage is 7.35/hr

    Montana state property tax

    Property tax is assessed on equipment, vehicles and livestock. The amount of taxation is determined by the property value times the tax rate set by the legislature.

    Montana state corporate tax

    There is a flat tax of 6.25% on all corporate income.

    Exemptions

    There are personal exemptions from taxation that range from $1,780 - $4,010 for individuals and $3,560 - $8,020 for couples. Dependents are subject to a $2,140 exemption. Those 65 and older receive a $2,040 exemption. You may make full deductions for federal taxes paid.

    Those single as well as 65 and older can deduct $1,600 in interest income from taxation. Married persons over 65 can deduct $800. Social security benefits may be taxable, depending on state law. Railroad retirement benefits are 100% exemptible. There are reductions and exemptions on property taxes for the elderly and disabled veterans.

    There is an income tax credit for child and dependent care expenses.

    Related Articles

    Link To This Page

    Comments

    Guide to Finding a Lawyer
    Tips