[{"data":1,"prerenderedAt":34},["ShallowReactive",2],{"state-content-montana":3},{"id":4,"title":5,"body":6,"description":26,"extension":27,"meta":28,"navigation":29,"path":30,"seo":31,"stem":32,"__hash__":33},"states\u002Fstates\u002Fmontana.md","Montana Tax Overview",{"type":7,"value":8,"toc":22},"minimark",[9,13,16,19],[10,11,12],"p",{},"Montana has a graduated income tax with a top rate of 5.9%, which takes effect on income above $20,500 for single filers in 2026. The state recently simplified its bracket structure as part of a 2021 tax reform package that reduced rates and collapsed brackets. Previously Montana had seven brackets with a top rate of 6.9%. The new system has two brackets and a lower top rate, which benefits middle and upper earners.",[10,14,15],{},"Montana has no statewide sales tax, which is one of only five states without one. This means workers in Montana keep more of their after-tax income on purchases. The absence of sales tax reduces the overall effective state and local tax burden compared to neighboring states like Idaho (6% sales tax) and Wyoming (4% sales tax). For a household spending $40,000 per year on taxable goods, the sales tax savings alone can amount to $2,000 to $2,500 per year.",[10,17,18],{},"The standard deduction in Montana is $5,020 for single filers. This is lower than the federal standard deduction, which means Montana taxable income is higher than federal taxable income for most workers. A single worker earning $60,000 has roughly $54,980 of Montana taxable income, and the tax at blended rates comes to approximately $3,100 to $3,200.",[10,20,21],{},"Montana has no local income taxes. Cities like Billings, Missoula, and Great Falls do not levy a city wage tax. The 5.9% top rate combined with no sales tax puts Montana in a moderate position overall among states. Workers who spend heavily on taxable goods benefit from the sales tax exemption, while higher earners feel the 5.9% top rate on all income above $20,500.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[],"How Montana's income tax affects your paycheck","md",{},true,"\u002Fstates\u002Fmontana",{"title":5,"description":26},"states\u002Fmontana","KoLFqoP56JoA7yn_AsCgPkHlk3UafxoOfZZyMN83W9Y",1776796069588]