Montana tax burden — broken down.
Montana’s combined tax burden (income + property + sales) lands at 6.74% on our composite — ranking #47 of 51 jurisdictions. The top marginal individual income tax rate is 5.90%.
Montana burden, broken into 3 components
| Component | Montana rate | National median |
|---|---|---|
| Top marginal income | 5.90% | ~5.30% |
| Effective property | 0.84% | ~1.07% |
| State sales tax | 0.00% | ~5.50% |
| Combined composite | 6.74% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in Montana
Montana taxes most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are taxed by Montana. Federal taxation of these income sources is unchanged regardless of state.
How Montana compares
Of all 51 US jurisdictions ranked by combined burden composite, Montana sits at #47. That puts Montana in the bottom 10 lowest-burden states — high-earners frequently move here from CA/NY for the income-tax savings, even when factoring property/sales tradeoffs. For the live cross-state heat map, see the interactive tax burden map.
Montana metros — local tax overlay
State rates are uniform across Montana— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
More Montana metros coming as we expand city coverage.
Montana tax — common questions
What is the Montana top marginal income tax rate in 2025?
Montana's top marginal individual income tax rate is 5.90% on the highest bracket.
What is the Montana effective property tax rate?
Montana's statewide effective property tax rate is 0.84% of home value (annual). On a $400,000 home that's roughly $3,360/yr. Local variation can be ±0.5pp.
Does Montana tax retirement income or Social Security?
Montana taxes most retirement income, and taxes Social Security benefits.
Are there any Montana-specific tax quirks I should know about?
Montana has NO state sales tax — one of only 5 states; combined with low property tax, very tax-friendly for retirees. Vehicle registration fees substitute partially.
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.