Montana Tax Guide
5.9%top marginal rate
Montana has no state sales tax, making it one of five states without one. The state has a flat income tax rate of 5.9%. Property taxes are moderate. Montana is known for its low cost of living and no sales tax on purchases.
Montana Tax at a Glance
Income Tax
5.9%
Flat rate
Sales Tax
None
No state sales tax
Property Tax
0.84%
24% below the national average
Estate Tax
No
No state estate tax
How Montana Compares to the National Average
Notable Tax Facts
- No state sales tax — one of five states without one
- Switched to a flat 5.9% income tax rate from a progressive system
- Property taxes are slightly below the national average
- Popular for registering LLCs and RVs due to no sales tax
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Montana Tax FAQ
Does Montana have sales tax?
No. Montana is one of five states with no state sales tax. There are also no local sales taxes. This makes Montana popular for large purchases.
What is Montana's income tax rate?
Montana has a flat income tax rate of 5.9%. The state recently converted from a progressive system with a top rate of 6.75%.
Why do people register LLCs in Montana?
Montana's lack of sales tax makes it popular for registering LLCs to purchase vehicles, RVs, and aircraft without paying sales tax. The legality varies by state of residence.
Does Montana tax retirement income?
Montana taxes most retirement income, but offers a partial exemption for pension and annuity income. Social Security benefits may be taxable depending on income.
Compare With Other States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.