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Montana Taxes: Sales, Income, Corporate, and Property Taxes

By
Real Estate Broker/Owner with ESTATE House, Bozeman Real Estate RRE-BRO-LIC-61433

The State of Montana has no use and levies no general sales tax on consumers, a standard also shared by Delaware, Alaska, New Hampshire and Oregon. Two of Montana's excise taxes are the cigarette tax (1921), $1.70 per pack, ranking this tax 13th highest, and the gasoline tax (1947), 27.75 cents per gallon, 18th in United States.

 State & Local Tax Burden Chart - Western StatesMontana's personal income tax rate is composed of seven individual brackets. The top rate, ~6.9%, is levied when a person's income surpasses ~$14,900. Montana is 15th among states taxing at the individual level. In 2005, Montana taxed the individual $763, 26th in the United States.

Montana has both a state and local property tax, making it one of 37 states levying both. Like the majority of states levying both, Montana's local property tax rate is higher than the state's property tax rate. According to fiscal year 2004 data from the United States Census Bureau, Montana loacalities and communities reaped $774,842,000 from property taxes. During fiscal year 2002, Montana collected $183,937,000 in property taxes. The same year, combined state & local property tax collections equaled close to $959,000,000, which was $1034 per capita, 20th in the U.S. The 2006 figure puts the amount at $3108 per capita, ranking Montana 44th in the United States.

Montana's corporate tax structure consists of a flat rate 6.75%. Among states with a corporate income tax, Montana's is 28th highest in the U.S. In 2006, state-level corporate tax collections (minus local taxes) averaged $162.68 per capita, 18th in United States.

Montana Tax Payer's Association     The Tax Foundation - Montana State & Local Tax Burden

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Taunya Fagan Bozeman Montana Real Estate - Montana Ranches

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Comments(2)

Janaya Goselin
Re/Max Whatcom County - Bellingham, WA

Thanks for this bit of info. I have to say I wanted to check out your blog because I was born and raised in Billings and went to MSU. My husband's aunt is a realtor in your office. Back to the article though, I still can't believe for the life of me that MT has not adopted a sales tax. What is your feeling about this in relation to the other taxes that seem to constantly be raising? Do you think a sales tax might lessen this burden?

Oct 25, 2008 10:27 AM
Taunya Fagan Bozeman Real Estate
ESTATE House, Bozeman Real Estate - Bozeman, MT
Bozeman Real Estate: Luxury Homes, Land, Ranches

Thanks for the comment, Janaya. With Montana property taxes continuing to rise to pay for state programs and because we have a relatively strong tourism industry, adding revenue at the local levels, it may be time to consider a sales tax, though I have heard that ~2.5% of a sales tax is required just to pay for the tax-collecting infrastructure, like employees who collect and process the tax...

Oct 25, 2008 12:51 PM