 Summary Of Montana State Taxes
Sales Taxes
State Sales Tax: None
Gasoline Tax: 27 cents/gallon
Diesel Fuel Tax: 27.75 cents/gallon
Gasohol Tax: 27 cents/gallon
Personal Income Taxes
Tax Rate Range: - 2%; High - 11%
Income Brackets: Lowest - $2,200; Highest - $76,200
Number of Brackets: 10
Personal Exemptions: Single - $1,740; Married - $3,480;
Dependents - $1,740
Additional Exemptions: 65 or older - $1,740
Standard Deduction: Single - $3,260; Married filing jointly - $6,520
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: Full
Retirement Income Taxes: There is a $3,600 exemption for public pensions, qualified private pensions, and Social Security. It is reduced by $2 for every $1 that federal adjusted gross income exceeds $30,000. Phases out at $31,800 (individual filers) or $33,600 (married filing jointly) when both spouses have pension income.
Retired Military Pay: See above. Survivor benefits are taxed following federal tax rules.
Military Disability Retired Pay:
Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
Property Taxes
The assessed valuation of real property is based on 3.46% of its fair market value. The state established the tax rate to determine the assessed valuation while local taxing units establish the mill levies to determine the property tax. Personal property is also taxed, the most common being motor vehicles. All residential properties receive a 31% reduction but residents must file for the exemption. Residential property of certain disabled veterans, and the spouses of deceased veterans, is exempt from property taxation. Montana property owners can have their property taxes reduced if they meet certain qualifications. For instance the home or mobile home must be owned or under contract for deed, the owners must occupy the dwelling for at least seven months as their primary residence, and the owner's total income, including otherwise tax exempt income, must not exceed $16,457 for a single person or $21,942 for a married couple. Social Security income paid to a nursing home is not considered income. The state also has a circuit breaker program that provides tax relief to elderly homeowners and renters based on the relationship between the homeowner's property tax and income. (In the case of renters, the property tax equivalent is defined to be 15% of the gross rent paid during the tax year.)
Inheritance and Estate Taxes
There is no inheritance tax and a limited estate tax related to federal estate tax collection.
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