Montana Tax Calculator 2025
Calculate your Montana state income tax with our comprehensive 2025 calculator featuring the Big Sky State's progressive tax rates from 1% to 6.9%, no sales tax benefits, and advanced tax planning tools for Montana's natural resource economy.
Calculate Your Montana Tax
Enter your income information to calculate Montana's progressive state income tax with rates ranging from 1% to 6.9% plus applicable deductions and Big Sky State considerations.
Montana Tax Structure 2025
Montana operates a progressive income tax system with rates ranging from 1% to 6.9%, making it a moderate-tax western state. The Big Sky State has no sales tax and offers various retirement benefits and natural resource considerations.
MT Progressive Tax Brackets (2025)
- 1% on income up to $3,100 (single) / $6,200 (married)
- 2% on income $3,101-$5,500 (single) / $6,201-$11,000 (married)
- 3% on income $5,501-$8,400 (single) / $11,001-$16,800 (married)
- 4% on income $8,401-$11,300 (single) / $16,801-$22,600 (married)
- 5% on income $11,301-$14,500 (single) / $22,601-$29,000 (married)
- 6% on income $14,501-$20,500 (single) / $29,001-$41,000 (married)
- 6.9% on income over $20,500 (single) / $41,000 (married)
Standard Deductions (2025)
- Single: $5,040
- Married Filing Jointly: $10,080
- Married Filing Separately: $5,040
- Head of Household: $7,350
Montana Tax Benefits and Retirement Advantages
Montana provides several valuable tax benefits and retirement advantages, particularly for retirees, working individuals, and those in natural resource industries. The state's no sales tax policy and retirement benefits make it attractive for many taxpayers.
- Personal Exemption: $2,800 per taxpayer and qualifying dependent
- No Sales Tax: Montana is one of five states with no statewide sales tax
- Retirement Income Exclusion: Pension and annuity income exclusions for qualifying income
- Social Security Exempt: Social Security benefits are not subject to Montana tax
- Childcare Credit: Credit for qualifying childcare expenses
- Natural Resource Depletion: Special provisions for mining and energy sector
- Low Property Taxes: Below-average effective property tax rates
Montana Residency and Natural Resource Tax Planning
Understanding Montana residency requirements and natural resource tax planning strategies is important given the state's significant mining and energy economy and retirement-friendly policies.
Establishing MT Residency
Montana considers you a resident if your domicile is in Montana or you maintain a permanent place of abode in Montana and spend more than 183 days in the state during the tax year.
Natural Resource Income
Montana's economy relies heavily on mining, oil, gas, and timber. The state provides specific tax provisions for natural resource industries including depletion allowances and specialized deductions.
No Sales Tax Advantage
Montana's no sales tax policy provides significant savings for residents and makes the state attractive despite income tax obligations, particularly for high-consumption households.
Retirement Income Planning
Montana's tax-free Social Security and pension income exclusions make it very retirement-friendly. Plan retirement withdrawals to maximize Montana's favorable retirement income treatment.
Frequently Asked Questions
What are Montana's income tax rates for 2025?
Montana has progressive income tax rates ranging from 1% to 6.9% for 2025. The rates increase across seven brackets, with the top rate of 6.9% applying to income over $20,500 for single filers and $41,000 for married filing jointly.
Is Montana tax-friendly for retirees?
Yes, Montana is relatively retirement-friendly. Social Security benefits are not taxed, and the state offers a pension and annuity income exclusion for taxpayers with qualifying retirement income, making it attractive for retirees.
Does Montana have sales tax?
No, Montana is one of five states with no statewide sales tax. However, some resort communities may impose local option taxes on accommodation and resort services.
How does Montana tax retirement income?
Montana does not tax Social Security benefits and provides pension and annuity income exclusions for qualifying retirement income. This makes Montana relatively retirement-friendly despite having state income tax.
What deductions are available for Montana taxpayers?
Montana offers standard deductions, personal exemptions, retirement income exclusions, childcare deductions, and various other deductions including charitable contributions and mortgage interest deductions.
How are remote workers taxed in Montana?
Montana residents working remotely pay Montana tax on all income regardless of where they work. Non-residents working remotely for Montana companies generally don't owe Montana tax unless they work physically in the state.