Chart 1 outlines the three main state and local taxes – income, property, and sales/excise—and how the cost of these taxes is distributed among taxpayers. Both property and sales/excise taxes are regressive. Conversely, income taxes are progressive. While the income tax is progressive, it does not offset the regressive effects of the property and sales/excise taxes. Montana’s tax system would be substantially more regressive if it include a general sales tax. However, even without a sales tax, Montana’s low- and moderate-income families are facing a higher overall tax rate that wealthier households.