Montana State Income Tax Overview
Montana (MT) state income tax rate: 5.9% (graduated rate system)
Montana Income Tax Brackets (2026)
4.7% on first $20,500; 5.9% on income above $20,500 (2024; simplified from previous 7-bracket system)
Montana simplified its income tax in 2021 from a 7-bracket system to just two brackets. The top 5.9% rate kicks in at a relatively low $20,500, meaning most Montana filers pay at or near the top rate. Montana has no sales tax, which partially offsets the income tax burden.
Median Household Income in Montana
The median household income in Montana is $57,153. Montana's median income is slightly below the national average, with an economy centered on agriculture, tourism, energy, and small businesses. Bozeman and Missoula have grown rapidly as remote-work destinations, pushing median incomes upward.
How to Use This Calculator for Montana
- Enter your gross income and filing status
- The calculator applies Montana's graduated income tax rate of up to 5.9%
- Subtract your standard deduction and any applicable credits
- Review your estimated state and federal tax liability
Frequently Asked Questions
What is the Montana state income tax rate?
Montana has a graduated income tax with a top rate of 5.9%. 4.7% on first $20,500; 5.9% on income above $20,500 (2024; simplified from previous 7-bracket system).
How does Montana's income tax compare to the national average?
Montana's top income tax rate of 5.9% applies to a graduated rate system. Montana simplified its income tax in 2021 from a 7-bracket system to just two brackets. The top 5.9% rate kicks in at a relatively low $20,500, meaning most Montana filers pay at or near the top rate. Montana has no sales tax, which partially offsets the income tax burden.
What is the median household income in Montana?
The median household income in Montana is $57,153. Montana's median income is slightly below the national average, with an economy centered on agriculture, tourism, energy, and small businesses. Bozeman and Missoula have grown rapidly as remote-work destinations, pushing median incomes upward.
Is this state income tax calculator free to use for Montana?
Yes, this state income tax calculator is 100% free with no signup required. It includes Montana-specific tax rates and calculates your estimated state and federal tax liability instantly.