Montana taxes and cost of living (2026)
Montana has a graduated income tax from 4.70% to 5.65%. A $100,000 salary is worth about $71,484 a year in national buying power after every tax and Montana's prices, #23 of 51 (the state average is $70,397). Retiring on $50,000 a year takes about $1.24M, #21 lowest.
- State income tax
- 4.7%–5.65%
- Sales tax (avg. combined)
- 0.00%
- Property tax (effective)
- 0.69%
- Cost of living
- 94.6
- US = 100
- Social Security taxed?
- Partly
- Median home
- $425K
Take-home pay in Montana
Single filer, 10% of salary to a pre-tax 401(k), standard deduction, renting. All taxes include estimated sales tax.
| Salary | Federal | FICA | State + local | All-in tax rate | Take-home | In US dollars |
|---|---|---|---|---|---|---|
| $50,000 | $3,220 | $3,825 | $1,358 | 16.8% | $36,597 | $38,667 |
| $75,000 | $6,020 | $5,738 | $2,453 | 18.9% | $53,290 | $56,305 |
| $100,000 | $10,970 | $7,650 | $3,724 | 22.3% | $67,656 | $71,484 |
| $150,000 | $21,134 | $11,475 | $6,267 | 25.9% | $96,124 | $101,563 |
| $250,000 | $43,304 | $15,514 | $11,352 | 28.1% | $154,830 | $163,591 |
What it takes to retire in Montana
Married couple, age 60, withdrawals 60% from 401(k)/IRA, 20% Roth, 20% brokerage, no Social Security yet, renting. Spending at US-average prices.
| Spending | At MT prices | Income taxes | All taxes | FI number |
|---|---|---|---|---|
| $40,000 | $37,858 | $0 | $0 | $946.5K |
| $60,000 | $56,787 | $509 | $509 | $1.43M |
| $80,000 | $75,716 | $2,415 | $2,415 | $1.95M |
| $120,000 | $113,574 | $6,559 | $6,559 | $3.00M |
Montana tax rules at a glance
- Income tax: Montana has a graduated income tax from 4.70% to 5.65%. Since 2024 Montana starts from federal taxable income (excluding the federal QBI deduction), so the federal standard deduction applies (2026: $16,100 / $32,200). HB 337 (2025) for TY2026: top rate cut from 5.9% to 5.65% and the 4.7% bracket widened to $47,500 single / $95,000 MFJ ($71,250 HOH). TY2027: 4.7% to $65,000 / $130,000, then 5.4%. Long-term capital gains are taxed separately (see capital_gains). Montana EITC rises to 20% of federal from 2026. Not confirmed whether the new federal $6,000 senior deduction flows through to Montana via federal taxable income.
- Local income tax: No local income taxes.
- Social Security: Taxed at least in part. Taxable to the same extent as federally taxable (flows through federal taxable income). Taxpayers age 65+ get a general subtraction of $5,500 ($11,000 if both spouses 65+ on a joint return), inflation-indexed from 2025; the 2026 indexed amount (reported by secondary sources as ~$5,660) is not confirmed.
- Retirement income: No pension/IRA-specific exclusion since 2024. Only the general age-65+ subtraction of $5,500 per person (indexed; any income type).
- Capital gains: Long-term gains taxed at 3.0% and 4.1% instead of the 4.7%/5.65% ordinary rates (modeled as a 30% exclusion).
- Sales tax: 0.00% state rate, 0.00% average with local taxes; groceries exempt.
Compare Montana with
Frequently asked questions
Does Montana have a state income tax?
Montana has a graduated income tax from 4.70% to 5.65%. Since 2024 Montana starts from federal taxable income (excluding the federal QBI deduction), so the federal standard deduction applies (2026: $16,100 / $32,200). HB 337 (2025) for TY2026: top rate cut from 5.9% to 5.65% and the 4.7% bracket widened to $47,500 single / $95,000 MFJ ($71,250 HOH). TY2027: 4.7% to $65,000 / $130,000, then 5.4%. Long-term capital gains are taxed separately (see capital_gains). Montana EITC rises to 20% of federal from 2026. Not confirmed whether the new federal $6,000 senior deduction flows through to Montana via federal taxable income.
How much is $100,000 after taxes in Montana?
A single filer earning $100,000 who puts $10,000 in a 401(k) takes home about $67,656 after federal, state and local income taxes and payroll taxes, an all-in effective rate of 22.3% including estimated sales tax.
Does Montana tax Social Security?
Yes, at least partly. Taxable to the same extent as federally taxable (flows through federal taxable income). Taxpayers age 65+ get a general subtraction of $5,500 ($11,000 if both spouses 65+ on a joint return), inflation-indexed from 2025; the 2026 indexed amount (reported by secondary sources as ~$5,660) is not confirmed.
How much do you need to retire in Montana?
To spend $50,000 a year (at US-average prices) with withdrawals mostly from a 401(k)/IRA, you'd need about $1.24M in Montana using the 4% rule, after its cost of living and taxes.
Is Montana expensive to live in?
Montana's cost of living index is 94.6, where the US average is 100 (BEA Regional Price Parities, 2024). The median home is worth about $425,400 and median rent is $1,177 a month.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).