Montana Tax Guide 2026

Montana Income Tax Overview

Montana has a No sales tax — income tax up to 5.9%. When combined with federal income tax and FICA taxes, Montana residents in the median income range of $60,560 typically face a combined effective tax rate of approximately 31% on their gross income. The state income tax is calculated on taxable income after the federal standard deduction of $16,100 (single) or $32,200 (married filing jointly) for 2026.

Montana Sales Tax Rate 2026

Montana has no state sales tax, making it one of only five NOMAD states (New Hampshire, Oregon, Montana, Alaska, Delaware) with no general sales tax. Residents and visitors pay $0 in sales tax on most purchases, which is a significant advantage for large purchases like furniture, electronics, and clothing. This makes Montana a popular shopping destination for residents of neighboring states with higher sales taxes.

Property Taxes in Montana

Montana homeowners pay an effective property tax rate of 0.74% annually. On the Montana median home price of $420,000, that means approximately $3,108 per year — or $259 added to your monthly mortgage payment. Montana's property tax rate is near the national average of 1.07%.

Total Tax Burden for Montana Residents

When calculating the total tax burden for a Montana household earning $60,560 annually, you must add: federal income tax (approximately $7,267), FICA taxes (7.65% = $4,633), Montana state income tax (approximately $2,501), and property taxes if you own a home. Use the specific calculators above to get your exact personalized numbers based on your income, filing status, and situation.

Tax Tips for Montana Residents in 2026

• Maximize your 401(k) to $24,500 — reduces both federal AND Montana state income tax
• HSA contributions are deductible from both federal and state income tax in Montana
• Check if Montana has its own standard deduction (some states have lower amounts than federal)
• The 2026 OBBBA tip and overtime deductions apply at federal level — check Montana conformity