Montana
What's New
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blog
May 17, 2017Investors and Corporations Would Profit from a Federal Private School Voucher Tax Credit
A new report by the Institute on Taxation and Economic Policy (ITEP) and AASA, the School Superintendents Association, details how tax subsidies that funnel money toward private schools are being…
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report
May 17, 2017Public Loss Private Gain: How School Voucher Tax Shelters Undermine Public Education
One of the most important functions of government is to maintain a high-quality public education system. In many states, however, this objective is being undermined by tax policies that redirect…
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blog
May 4, 2017EITC Victories Await in Both Hawaii and Montana
Two states are on the verge of embracing a tried and tested anti-poverty policy, the Earned Income Tax Credit (EITC). In the past two weeks, lawmakers in both Hawaii and…
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ITEP Work in Action
March 19, 2017Montana Budget & Policy Center: Capital Gains Tax Credit Valuing Wealth Over Work in Montana
In 2003, the Montana Legislature passed a capital gains tax credit that benefits a very narrow portion of our population at the great expense of our collective ability to adequately… -
ITEP Work in Action
December 31, 2016Montana Budget & Policy Center: Montana Corporate Income Taxes
For generations, our tax dollars have served as shared investments in the programs and services that make our state a great place to live, work, and play. Tax dollars enable… -
ITEP Work in Action
November 30, 2016Montana Budget & Policy Center: Introduction to Who Pays Montana’s Taxes
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…
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ITEP Work in Action
November 30, 2016Montana Budget & Policy Center: Montana’s Individiual Income Tax
Prior to the tax cuts implemented in 2003, Montana had ten different income brackets, with each higher income bracket paying a slightly larger share of their income in taxes (Appendix A).5 In this old structure, the lowest income bracket paid 2% of their income in taxes, while the high Read more here -
ITEP Work in Action
September 30, 2016Montana Budget & Policy Center: A Montana Earned Income Tax Credit (EITC)
Approximately 83,000 Montanans received the federal EITC in 2014. If Montana established a state EITC, these same working families would receive additional support through boosted wages and would be better… -
ITEP Work in Action
July 30, 2016Montana Budget & Policy Center: The Montana We Could Be
In Montana, the higher a household’s income, the lower share of that income it tends to pay in state and local taxes [see Chart 1]. One reason for this is…
By the Numbers
| Personal Income Tax Features (2015) | |
|---|---|
| Range of Tax Rates | 1% - 6.9% |
| Standard Deduction |
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| Personal Exemption | $2,330 (2014) |
| Dependent Exemption | $2,330 (2014) |
| Earned Income Tax Credit (EITC) | None |
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| Corporate Income Tax Features (2015) | |
|---|---|
| Range of Tax Rates | N/A |
| Income Level at Which Top Rate Applies | N/A |
| Combined Reporting | 6.75% |
| Apportionment Factor (Payroll) | All |
| Apportionment Factor (Property) | Yes |
| Apportionment Factor (Sales) | 33% |
| Sales Tax Features (2015) | |
|---|---|
| State Sales Tax Rate | N/A |
| Average Local Sales Tax Rate | N/A |
| Average Combined State & Local Sales Tax Rate | N/A |
| State Sales Tax Treatment of Groceries | N/A |
| Local Sales Tax Treatment of Groceries | N/A |
| Number of Services Taxed | 18 out of 168 surveyed (2007) |
| Streamlined Sales Tax Membership | No |
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| Property Tax Features (2015) | |
|---|---|
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| Other Tax & Revenue Features (2015) | |
|---|---|
| Gasoline Tax Rate (per gallon) | $0.278 |
| Diesel Tax Rate (per gallon) | $0.286 |
| Cigarette Tax Rate (per pack) | $1.70 |
| Estate or Inheritance Tax | No |
| Net Lottery Sales Per Capita | $45 (2010) |
| Tax Policy Oversight | |
|---|---|
| Tax Expenditure Report | Yes |
| Tax Incidence Analysis Capability | Personal income tax only |
Last updated January 13, 2015
RESOURCES
State Tax & Revenue Information
- Montana Department of Revenue
- Montana Department of Revenue - Biennial Reports
- Montana Tax Reform Study Committee
Tax Expenditure Reports
State Statutes & Legislation
State Tax Forms
State Legislative Summaries
- None