Montana State Taxes 2024 - 2025

Montana state taxes are levied on various forms of income and property. While the state does not impose a sales tax, it does levy income and property taxes, with rates varying by county and type of tax.

Montana state taxes encompass a variety of tax types, including income tax, property tax, and corporate tax, all administered by the Montana Department of Revenue. The income tax in Montana is progressive, with rates ranging from 1% to 6.75% based on income brackets. Every resident and part-year resident of Montana is required to file a state income tax return if they meet the set filing requirements. Interestingly, Montana is one of the few states that does not impose a general sales tax, though it does have a use tax that applies to the use, storage, or consumption of goods within the state when sales tax hasn’t been paid at the time of purchase. Corporate income tax in Montana is set at a flat rate of 6.75%, applying to all businesses operating within the state.

How to Pay Montana Taxes?

Paying Montana taxes can be done through several methods for the convenience of the taxpayers. Payments can be made online via the Montana Department of Revenue’s TransAction Portal (TAP), which is a secure and user-friendly platform. Alternatively, taxpayers can mail checks or money orders directly to the Montana Department of Revenue. Payments can be made at various Montana Department of Revenue offices across the state for those who prefer in-person transactions.

Montana State Taxes Exemptions

Montana State Taxes Exemptions

Montana offers various exemptions and credits to reduce the tax burden on its residents. Taxpayers can claim personal exemptions for themselves and their dependents. Specific exemptions also apply to certain types of retirement income, which can be excluded from state taxes under certain conditions. Additionally, Montana provides property tax assistance programs aimed at helping low-income homeowners, the elderly, and disabled individuals manage their property tax liabilities.

Montana State Taxes Due Dates

Key due dates are crucial for taxpayers to remember to avoid penalties. The deadline for filing income tax returns is April 15th of the year following the tax year. Those who need to make estimated tax payments are typically due quarterly on April 15, June 15, September 15, and January 15 of the following year. Property taxes in Montana are generally due in two installments, on November 30 and May 31.

Montana Tax Forms

Several forms are used to file Montana state taxes. For individual income tax returns, Form 2 is the primary document, while a simplified version, Form 2EZ, is available for those who qualify. Corporate entities need to file their taxes using Form CIT for the corporate income tax return and Form CLT-4 for the corporate license tax return. These forms can be downloaded from the Montana Department of Revenue’s website, which also provides comprehensive guidance on completing and submitting these forms.

How to Calculate Montana Income Taxes

How to Calculate Montana Income Taxes?

To calculate Montana income taxes, you must first determine your taxable income. This includes your federal adjusted gross income plus any additional amounts you add, such as Social Security benefits, rental income, interest on savings accounts, some retirement account distributions, and political contributions. However, there are several things you can subtract from your taxable income to reduce your Montana income tax bill.

For example, Montana does not have an inheritance or estate tax, so you won’t need to worry about paying those. You can also reduce your taxable income by taking advantage of the state’s many income-tax deductions, such as the child and dependent care credit or the home mortgage interest and real property tax deductions. In addition, you can reduce your taxable income by investing in renewable energy projects that qualify for significant government tax incentives.