Montana: Who Pays? 7th Edition
Montana
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All figures and charts show 2024 tax law in Montana, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis includes nearly all (99.5 percent) state and local tax revenue collected in Montana.
State and local tax shares of family income
| Top 20% | |||||||
| Income Group | Lowest 20% | Second 20% | Middle 20% | Fourth 20% | Next 15% | Next 4% | Top 1% |
| Income Range | Less than $22,500 | $22,500 to $42,300 | $42,300 to $74,700 | $74,700 to $130,000 | $130,000 to $247,400 | $247,400 to $574,900 | Over $574,900 |
| Average Income in Group | $11,400 | $32,600 | $56,600 | $100,700 | $166,400 | $341,500 | $1,214,100 |
| Sales & Excise Taxes | 3.7% | 2% | 1.7% | 1.2% | 0.9% | 0.6% | 0.3% |
| General Sales–Individuals | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Other Sales & Excise–Ind | 3.3% | 1.6% | 1.3% | 0.9% | 0.6% | 0.4% | 0.1% |
| Sales & Excise–Business | 0.5% | 0.4% | 0.4% | 0.3% | 0.3% | 0.2% | 0.2% |
| Property Taxes | 5.5% | 3.2% | 3.4% | 3.2% | 2.9% | 2.4% | 1.8% |
| Home, Rent, Car–Individuals | 4.5% | 2.3% | 2.5% | 2.4% | 2% | 1.3% | 0.5% |
| Other Property Taxes | 1% | 0.9% | 0.9% | 0.8% | 0.9% | 1.2% | 1.3% |
| Income Taxes | -0.2% | 1.8% | 2.8% | 3.6% | 4.2% | 4.2% | 4.2% |
| Personal Income Taxes | -0.3% | 1.7% | 2.7% | 3.6% | 4.1% | 4.1% | 4.2% |
| Corporate Income Taxes | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% |
| Other Taxes | 0.6% | 0.5% | 0.5% | 0.4% | 0.4% | 0.5% | 0.4% |
| TOTAL TAXES | 9.5% | 7.5% | 8.3% | 8.5% | 8.4% | 7.7% | 6.7% |
| Individual figures may not sum to totals due to rounding. | |||||||
ITEP Tax Inequality Index
ITEP’s Tax Inequality Index measures the effects of each state’s tax system on income inequality. According to this measure, Montana has the 38th most regressive state and local tax system in the country. Income disparities are larger in Montana after state and local taxes are collected than before. (See Appendix B for state-by-state rankings and the report methodology for additional detail.)
Tax features driving the data in Montana
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Requires combined reporting for the corporate income tax; some foreign tax haven income is partially taxed through GILTI inclusion
Graduated personal income tax structure; however top rate kicks in at $19,200 (single) so large share of families face top rate
Refundable property tax “circuit breaker” credit (all ages, some renters)
Refundable Earned Income Tax Credit (EITC)
No statewide sales tax
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Preferential income tax rates for income from capital gains
Comparatively low Earned Income Tax Credit (EITC)
Does not levy a tax on estates or inheritances
Comparatively high reliance on property taxes
No Child Tax Credit (CTC)
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