Montana individual income tax
Montana levies an individual income tax on both residents and nonresidents, calculated using their federal-adjusted gross income, with rates ranging from 1% to 6.9%.
April 18
Return due in 2023
6.9%
Top marginal tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit MT TAP
What is Montana income tax?
Individual income tax
Individual income tax is a type of direct tax levied by Montana on individuals that meet the taxable criteria.
Taxable incomes
Montana taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
Montana has 7 individual income tax brackets from 1% to 6.9%.
Standard deduction
Standard deduction is $2,260 - $5,090 for singles and $4,520 - $10,180 for joint filers for the tax year 2022.
Standard deduction amount
It depends on your level of income, the state gives maximum and minimum deductions applicable to each filing status.
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| Montana taxable income | Tax rate |
|---|---|
| $0 - $3,300 | 1% |
| $3,300 - $5,800 | 2% |
| $5,800 - $8,900 | 3% |
| $8,900 - $12,000 | 4% |
| $12,000 - $15,400 | 5% |
| $15,400 - $19,800 | 6% |
| $19,800+ | 6.9% |
Residency
Residency in Montana refers to an individual's permanent home or place of residence in the state.
Montana resident
A Montana resident is someone who is maintains a permanent place of residence in the state. A resident will also have a driving license and voting rights in the state.
If you are not domiciled in Montana and have a permanent residence in the state, but have spent most of your time in another state, you are still considered a resident.
Montana part-year resident
A Montana Part-Year Resident is someone who moved into or out of the state during the tax year.
Income earned while the individual was a resident of Montana is subject to state taxes.
Individuals who are part-year residents in Montana are required to file an income tax return as a part-year resident and use the Nonresident/Part-Year Resident Schedule to calculate their tax liability in the state.
Montana non-resident
A Montana Nonresident is someone who does not have a permanent residence in the state.
Nonresidents who receive income from Montana sources are required to pay Montana taxes.
Individual income tax
The State of Montana requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from Montana
Types of taxable incomes
The income types on which tax is levied are:
In Montana, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in Montana, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
Montana requires you to file Montana returns and IRS returns at the same time. Therefore you need to file Montana returns along with IRS tax return.
Montana considers payment of taxes without filing as an extension to filing. However, if you don't file by Oct 16, 2023, you will be subjected to penalities.
Due
quarterly or annually
Pay taxes
Taxes in Montana are due by 18 April, 2023. Go to the official Montana Department of Revenue website.
Type of tax
graduated tax
Due
quarterly or annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
Montana has standard deduction based on your level of income and filing status.
Standard deduction is $2,260 - $5,090 for singles and $4,520 - $10,180 for joint filers for the tax year 2022.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Frequently asked questions
Business entities in Montana
There are several business entities in Montana
Montana LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time