Montana State Taxes

Montana Income Tax

In 2024, Montana switched to a two-tier tax rate based on filing status and taxable income. Income amounts adjust annually with inflation. For 2026, the top-tier rate is 5.65%.

2026 Montana Individual Income Tax Rates

Tax Rate	Single/Married Filing Separately	Head of Household	Married Filing Jointly
4.7%	Less than $47,500	Less than $71,250	Less than $95,000
5.65%	More than $47,500	More than $71,250	More than $95,000

Who Must File?

In general, residents or part-year residents of Montana, as well as nonresidents who received Montana source income, who had a requirement to file a federal tax return, must file a Montana income tax return. If you do not have a federal filing requirement but have a Montana addition or subtraction, you are required to file a Montana income tax return.

Montana Sales Tax

Montana does not levy state or local general-use sales taxes. There are, however, various miscellaneous taxes collected at the state and/or local level for certain purchases or activities. For example, state taxes are set at 4% for medical marijuana and 20% for adult-use sales. Local rates set by the county can add up to an additional 3% for either type of purchase. Cigarettes also include an 8.5 cents tax per cigarette (averages $1.70 per standard pack) that is included in the retail price.

Montana Property Taxes

Montana residential property is valued every two years at 100% of market value. Counties mail out property tax bills each October. The first payment is due by November 30 or within 30 days of the postmark, whichever is later. The second payment is due on May 31.

The median property tax bill in Montana is $2,419. Missoula County has the highest average annual bill at $3,576. The lowest average property tax bill in the state is $700 in Wibaux County.

Montana Property Tax

Highest	$3576
Median	$2419
Lowest	$700

Yearly Cost Per Resident

Montana Tax Holidays

Montana does not host any sales tax holidays since they do not levy any general-use sales tax.

Montana Tax Relief

When Montana income taxes go unpaid, penalties and interest can cause your balance to grow, making the debt harder to resolve over time. The Montana Department of Revenue (DOR) has several methods for collecting delinquent taxes, so it’s important to address an outstanding balance before the situation progresses. Tax problems can happen for many reasons, including unfiled returns, unexpected financial difficulties, or unpaid business tax obligations.

Being unable to pay your entire Montana tax bill at once doesn’t necessarily mean you’re out of options. Depending on your circumstances and eligibility, you may be able to request a payment plan, apply for the Voluntary Disclosure Program, or explore other available tax resolution options. Finding a suitable way to address your balance may also help you avoid or resolve collection actions such as tax liens, wage garnishments, and levies.

Taking the time to understand Montana’s tax collection process and the relief options that may be available can make it easier to decide how to proceed. Addressing your tax debt before it becomes more serious can help you work toward resolving your balance and bringing your account back into good standing.

Common Montana State Tax Problems

How Montana Collects Tax Debt

If you owe Montana income taxes, the state will send a Delinquency notice notifying you of the past-due balance. Failure to pay your balance will result in the state following up by phone, letter, and email. Continued non-compliance will result in the state filing a Warrant for Distraint (tax lien) with the district court.

Once the warrant is filed, the Collections Service Bureau may levy your bank account and/or wages. They may also seize your property and sell it to satisfy your tax debt. Tax refunds (state or federal) can also be seized (offset).

Unresolved tax debts may be eventually transferred to a third-party collection agency.

Delinquency notice sent to taxpayer

Direct contact (calls, emails, etc.)

Referral to Collections Service Bureau

Montana State Tax Relief Options

Montana offers a few relief options, including:

• Payment Plans – If you can’t pay your tax bill on time, you may be eligible to pay over several months (up to 60) through a payment plan.
• Voluntary Disclosure Program – If you haven’t filed within the last 5 years and have not received a bill/notice regarding the unfiled or unpaid taxes, you may be able to get back into compliance and waive penalty fees through the Montana Voluntary Disclosure Program.

If you’re experiencing financial hardship and can’t pay your Montana income tax bill, contact the Department of Revenue as soon as possible to avoid collection actions.

When to Seek Tax Relief Help

If you’re experiencing any of the following, it may be time to explore your tax relief options:

The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.

Montana Tax Relief FAQs

How do I set up an Montana payment plan?

If you owe Montana income tax and want to set up a payment plan, you can do so by logging into your TAP account.

Once online, select the account that you want to request the payment plan for (must have a balance due) and in the “Account Options” panel, choose “Request a Payment Plan” and submit your request. Most payment plan requests are approved immediately.

The state generally offers payment plans between 6 and 12 months, but terms up to 36 can be arranged online. For longer payment plans (up to 60 months), you may be required to submit a full financial statement, and a tax lien will also be filed.

For monthly payments less than $50 or terms exceeding 24 months, you should contact the MT DOR directly.

What happens if I ignore Montana tax notices?

If you don’t pay your Montana income taxes and ignore repeated notices, the state will move your account to the Collections Service Bureau, which may place liens on your property, levy your wages or assets, or eventually transfer your account to an outside agency.

Can Montana garnish my wages for unpaid taxes?

Yes, the Collections Services Bureau (CSB) can garnish up to 25% of your weekly disposable earnings, or the amount by which your weekly disposable income exceeds $217.50, whichever is less.

Can Montana levy my bank account?

Yes. The MT Collections Service Bureau can seize funds from your bank accounts to pay off your overdue tax balance.

How long does Montana have to collect back taxes?

Although Montana does not have a general statute of limitations for collecting back taxes, its Warrant for Distraint is valid for 10 years from the date of issuance and can be renewed for an additional 10 years. There is no limit for unfiled or fraudulent returns.

Montana Tax Resources

If you need assistance preparing your Montana state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.

You can also visit the Montana Department of Revenue website for additional resources.

• Filing Options
• Individual Income Tax Forms
• Where’s My Refund?
• Customer Service: 406-444-6900