What tax do you pay in Montana?
Tax year 2026
State income tax here runs about 3.84% of a seventy-five-thousand-dollar salary. That is what Montana takes. There is no general sales tax here either.
Montana levies an effective state income tax of 3.84% on a single filer at seventy-five thousand dollars. No general sales tax is levied. ⚠️ Excise on fuel, alcohol and tobacco still applies and is embedded in shelf price.
Income tax on $75,000
3.84%
rank 22 of 51
Combined sales tax
0%
rank 48 of 51
Montana taxes income on a sliding scale. The more you earn, the higher the rate on that part of it — from about 5 cents of every dollar 4.7% up to about 6 cents of every dollar 5.65%.
Montana applies a progressive bracket schedule for 2026, from about 4.7% to about 5.65%.
| Taxable income | Rate |
|---|---|
| Up to $47,500 | 4.7% |
| Over $47,500 | 5.65% |
Shown for Single, Married filing separately. Married filing jointly; Head of household use a different schedule — see the calculator above for the exact figures.
Taxable income basis: federal taxable income (federalTaxable).
Sales tax
Montana does not charge a general sales tax at all.
Montana levies no general state sales tax for 2026.
Property tax
Property tax in Montana sits in the middle of the pack. The effective rate is 0.72% of a home's value — rank 32 nationally.
Montana carries an effective property tax rate of about 0.72% of market value, ranking 32 nationally — mid-distribution, against an unweighted mean across the fifty-one jurisdictions of about 0.94%.
A typical home here is worth $375,800.00, and the typical yearly bill is $2,693.00. Put the same $440,600.00 house here and it would cost $3,157.34 a year to hold. That is money you pay every year you own it, not once.
Median owner-occupied home value is $375,800 with a median annual real estate tax of $2,693. Applying this state's effective rate to the site's reference price of $440,600 gives $3,157 a year — the two figures answer different questions, since the median bill blends the rate with local price levels while the reference bill isolates the jurisdiction. This is an effective rate, tax paid divided by market value, and not a nominal millage against an assessed value; the two are different quantities. A statewide ratio of medians also describes no particular address, so an individual county or property can sit well away from it.
US Census Bureau ACS 5-Year Estimates, tables B25103 (Median Real Estate Taxes Paid) and B25077 (Median Value, owner-occupied). ACS 5-year estimates covering 2020–2024, so the as-of date (2024-12-31) is the end of the estimation window rather than a measurement date. Last verified 2026-08-29.
Other costs to know about
Stay in a hotel in Montana and the state adds about 8% to the room rate. Cities and counties add their own on top, and that part is often the bigger one.
State-level lodging tax: about 8%, combining the state lodging levy, sales tax where it reaches rooms, and any statewide assessment.
The state's own share only. Local occupancy taxes are set by cities and counties and are excluded here.
Every phone line in Montana carries a $1.00 monthly charge for emergency services. It is a flat amount per line, so it costs a family with several phones more than the rate on the bill suggests.
State emergency-services surcharge: $1.00 per line per month, levied as a fixed charge rather than as a share of the bill.
Counties may levy their own emergency-services charge on top, and wireless bills carry further federal and state surcharges.
At a $75,000 salary, Montana's state income tax works out to an effective rate of about 3.84% — roughly $2,880 a year — which is close to the middle nationally (22nd of 51) among all 51 jurisdictions we track (50 states plus DC). Montana charges no general state sales tax at all — one of only 4 states nationwide that don't; the others are Delaware, New Hampshire, and Oregon. A purchase here avoids that layer of tax entirely, though local excise taxes on things like fuel, alcohol, and tobacco are typically still built into the sticker price. With no general sales tax, Montana leans more heavily on income tax to fund state government than most states do — worth knowing if you're comparing the true cost of living here against a state that does the opposite. Every purchase priced out on this site for Montana uses these same verified, cited, Montana-specific figures for both layers — never a national average quietly standing in for the real number.
What lands in your account
A $75,000 salary
| Take-home, year | $58,716 |
|---|---|
| Tax, year | $16,284 |
| Share of pay taxed | 21.71% |
This is an average rate across all your pay — not the rate on your next dollar.
Where the money goes
A $75,000 salary
- Federal income tax$7,670
- Social Security and Medicare$5,738
- State income tax$2,877
- Yours$58,716
| Federal income tax10.23% | $7,670 |
|---|---|
| Social Security and Medicare7.65% | $5,738 |
| State income tax3.84% | $2,877 |
| Yours78.29% | $58,716 |
How this state ranks, at this income
A $75,000 salary
| Take-home in Montana | $58,716 |
|---|---|
| Rank once local prices are leveledBEA price parity | 15th of 51 |
| Most take-home at this income | South Dakota · $61,593 |
| Best once prices are leveled | South Dakota |
State income tax only — no city or county income tax is applied to any state here.
Property tax on a home here
A $75,000 salary
| State effective rate | 0.72% |
|---|---|
| Median home in this state | $375,800 |
| Median tax actually paid | $2,693 |
| Rate rank, highest first | 32nd of 51 |
| Pay needed to cover it | $4,162 |
A statewide average effective rate. Your town, county and school district set the real bill.
Explore more about pay, taxes and comparisons in Montana
What changed in Montana
A $75,000 salary
| HB 337from 2026-01-01 | Reduced the top marginal individual income tax rate from 5.9% to 5.65% and expanded the lower bracket.decrease |
|---|---|
| HB 337from 2026-01-01 | Increased the earned income tax credit to 20% of the federal credit.increase |
Montana against Texas
A $75,000 salary
| Measure | Montana | Texas |
|---|---|---|
| Take-home pay | $58,716 | $61,593 |
| Worth after local prices | $65,063 | $63,383 |
| Share of pay taxed | 21.71% | 17.88% |
| State sales tax | 0% | 6.25% |
| Groceries exempt here | Yes | Yes |
| Clothing exempt at $100 | Yes | No |
| Property tax rate | 0.72% | 1.49% |
| Price level | 90.2 | 97.2 |
| Housing prices | 76.7 | 97.4 |
| Fuel tax | 33¢ | 20¢ |
| Tobacco tax | $1.70 | $1.41 |
City income tax excluded. Sales-tax row: state-only. Exemptions: Montana, No general sales tax; Texas, Harris County (Houston). Clothing: one $100 item; higher prices can change tax.
What you would need there
A $75,000 salary
| To match take-home only | $70,911 |
|---|---|
| Raise you would need | +$2,321 |
| Prices in Texas | 97 vs 90 |
State taxes and state price levels only. No city tax, and no housing market.
Every state, at your income
A $75,000 salary
| Best to worst | $6,012 |
|---|---|
| Behind the best | $2,877 |
| Best at this income | South Dakota |
State income tax only. Each dot is one state's take-home on this salary.
The three taxes you meet
A $75,000 salary
- Income tax21.71%
- Sales tax$0
- Property tax$2,150
| Income tax paid | 21.71% |
|---|---|
| Sales tax, on that spending | $0 |
| Property tax, on that home | $2,150 |
Three different bases, so never summed. Assumes 30% of take-home spent taxably, on a $300,000 home.
Property tax, against the country
A $75,000 salary
| Lowest in the country | 0.27% |
|---|---|
| Highest | 2.11% |
A statewide average effective rate. Your town and school district set the real bill.
When you start earning for yourself
A $75,000 salary
- To income tax · 80 days
- Yours · 285 days
| Share of pay taxed | 21.71% |
|---|
Your income tax, restated as time. Not the national figure, which counts every other tax too.
What no income tax costs instead
A $75,000 salary
- Income
- Sales
- Property
| Income tax saved | $2,877 |
|---|---|
| Sales and property added | $1,494 |
| States with none | 9 |
Against the average of the states with no income tax. Stated assumptions: 30% spent taxably, a $300,000 home.
Price something out in Montana
Adjust assumptions
to cover an air conditioner
$500 invested upfront, assuming 7% a year. Includes your starting money and its growth. An illustration, not a forecast; investment growth is separate from the purchase cost above.
- Income tax (federal, FICA, state)35%$273
- Air conditioner65%$500
- Income tax (federal, FICA, state)
- Air conditioner
Data for nerds — sources, confidence and assumptions
Data for nerdssources, confidence, assumptions
Where each number comes from
| Component | Amount | Confidence |
|---|---|---|
| Item price | $500.00 | Your figureHigh confidence. You supplied this, so it is exact by definition. |
| Income tax to earn it | $272.79 | StatutoryHigh confidence. This number is the law — federal, FICA and state tax rates are published rates, so the only real risk is staleness. |
Jurisdiction applied
- State:
MT - Local income tax: none selected
Assumptions
- We use the normal sales tax rate.
- The electricity to run it is left out. Over the life of the unit that usually costs more than the unit did.
- Sales tax applies at the standard rate.
- Electricity to run it is excluded and typically exceeds the purchase price over the unit's life.
Sources
Your position in the tax system
35.3% on the next dollarEvery extra dollar you earn is taxed at your marginal rate, not your average one — which is why a purchase costs more to fund than a paycheck stub suggests.
Marginal rates are read in gross-income terms: below the standard deduction an extra dollar of pay adds nothing to taxable income, so the true rate there is 0%, not the lowest bracket's. Excludes pre-tax deductions (401(k), HSA), which would lower all three.
Same purchase, different state
MT is #8 of 51The purchase inputs and income stay the same. Your row uses your calculator settings; other states use example counties and omit local income tax. Spread across all 51: $173, from New Hampshire to California.
- $711
- Montanayou$773
- $884
Choose a state name to compare against somewhere else.
Where every dollar goes
35% never reaches youThe $772.79 you must earn, followed to where it lands. Select a band to isolate it.
- Federal income tax$170.01
- FICA (Social Security + Medicare)$59.12
- MT income tax$43.66
- Air conditioner$500.00
Each tax layer is the extra tax this purchase causes — that layer's tax at your income subtracted from its tax at your income plus the gross-up — so bracket boundaries the purchase straddles are handled correctly rather than smoothed over with an average rate.
Is a raise actually a raise?
you keep 65%A raise arrives on top of everything you already earn, so it is taxed at your marginal rate — not the average rate on your whole salary.
Federal, FICA, state and any local income tax — no pre-tax deductions, benefit changes, or payroll withholding quirks, all of which move the real figure. Moving into a higher bracket never taxes the income below the threshold: only the dollars above it pay the higher rate.
Deep dives for Montana
- Car payment or lease in Montana
- Clothing in Montana
- Coffee habit in Montana
- Grocery delivery in Montana
- Haircut in Montana
- Home purchase in Montana
- Hotel stay in Montana
- Phone plan in Montana
- Prescription refill in Montana
- Rent in Montana
- Rental car in Montana
- Restaurant dinner in Montana
- Used car from a private seller in Montana
- Wedding in Montana
- Weekly groceries in Montana
Every purchase we model
Browse all 91 purchase categories
Questions people ask
If I move into the next tax bracket, is all my money taxed at the higher rate?
No. Only the dollars above the line are taxed at the new rate. Everything you earned below it keeps the rate it already had. Montana stacks 2 bands this way, and a raise moves only the top slice.
Is the top rate the rate I actually pay?
Those are two different numbers. about 5.65% is the rate on the last dollar. about 3.84% is the share of the whole that actually leaves.
Is what comes out of my paycheck the same as what I owe?
Rarely. Withholding is an estimate your employer makes from a form you filled in, often years ago. The real figure is settled on your return, and the gap is what a refund or a bill actually is.
I live here but work in another state. Who taxes me?
Where you live, when an agreement exists — and Montana has 1. One return at home, plus a form to your employer so the work state stops withholding.
Does no sales tax mean nothing is added at the register?
The register adds nothing general in Montana. Excise on fuel, tobacco and alcohol is already inside the price, and a few places levy local charges, so the shelf price is close to final rather than identical to it.
Is a low property tax rate the same as a low property tax bill?
No, because the rate is only half of it. The bill is the rate times an assessed value, and where homes are expensive a low rate still lands on a large number. Montana charges about 0.72% against a national mean of about 0.94%.
Does crossing a bracket threshold apply the higher marginal rate to all income?
Marginal rates apply only to income within each bracket. Montana operates 2 brackets for a single filer, topping out at about 5.65%; income below each threshold keeps the lower band's rate. The bracket change itself cannot reduce net income; credits and benefits follow separate rules.
How does the top marginal rate differ from the effective rate?
The statutory top marginal rate in Montana is about 5.65%, applying only to income above the final threshold. The effective rate — total state liability divided by gross income — is about 3.84% at this project's representative income for a single filer.
Does state withholding equal actual state liability?
Withholding is a prepayment computed from the allowances declared on a withholding certificate, not a liability calculation. Actual liability is determined on the annual return; the difference is refunded or collected. Neither over- nor under-withholding changes the amount owed.
How does a reciprocity agreement allocate taxing rights?
Montana maintains 1 reciprocity agreement(s). Where one applies, wages are taxable only by the state of residence, and the employee files a non-residence certificate with the employer to suspend work-state withholding. Absent that certificate, withholding continues and recovery requires a non-resident return.
What levies remain in a state without a general sales tax?
Montana imposes no general sales tax. Selective excise taxes on motor fuel, tobacco and alcohol remain and are levied upstream, so they are embedded in shelf prices rather than added at the point of sale. Certain localities levy their own transaction taxes independently of the state.
Why does a below-mean effective property tax rate not imply a low bill?
Effective rate and liability diverge because the base differs. Montana's statewide effective rate is about 0.72% against a national mean of about 0.94%; absolute liability is that rate applied to assessed value, so a below-mean rate in a high-value market can exceed an above-mean rate in a low-value one.