E-File Montana Taxes for a Speedy Tax Refund

Montana residents, nonresidents and partial-year residents are required to file state income tax returns if they earn income in the state. There is a long form, an intermediate form and a short form. The short form is best for people who do not plan to itemize deductions. The long form is best for taxpayers with complex itemization needs. All forms are available at https://revenue.mt.gov/home/forms.

With income tax rates of 4.7% and 5.9%, Montana has graduated tax brackets rather than a single high rate. However, the annual tax revenue of more than $2 billion is considerably lower than the nation's median range. Taxpayers requesting extensions must mail their requests by April 15, the date taxes are normally due. Extended returns are due on October 15.

Montana Tax Rate Structure

Montana uses a simplified two-bracket graduated income tax system for tax year 2024.

Single or Married Filing Separately:

• $0 to $20,500: 4.7%
• Over $20,500: 5.9%

Head of Household:

• $0 to $30,750: 4.7%
• Over $30,750: 5.9%

Married Filing Jointly or Qualifying Surviving Spouse:

• $0 to $41,000: 4.7%
• Over $41,000: 5.9%

Filing Requirements

You must file a Montana return if you meet federal filing requirements after considering any Montana additions or subtractions to federal taxable income.

Montana follows federal gross income thresholds, which for 2024 are:

• Single (under 65): $14,600
• Single (65 or older): $16,550
• Married filing jointly (both under 65): $29,200
• Head of household (under 65): $21,900

Special Tax Features

Montana offers several unique tax benefits:

No Sales Tax: The state is one of only five states without a general sales tax, making it attractive for consumers.

Lower Capital Gains Rates: Long-term capital gains are taxed at reduced rates of 3% and 4.1%, significantly lower than ordinary income rates.

Senior Exemption Taxpayers: 65 and older receive a $5,500 subtraction from federal taxable income.

Requesting Additional Time

Taxpayers who need additional time to file can request an extension by filling out a current Extension Payment Worksheet. An extension to file is not an extension to pay taxes due. Mail the extension request to the Department of Revenue along with any applicable payment at the following address:
PO Box 6309
Helena, MT 59604-6309

Amending A Return

If any errors are discovered on past tax returns, it is important to file an amendment. If there is no tax due, mail it to the Department of Revenue at:
PO Box 6577
Helena, MT 59604-6577

If there is tax due, mail the form and payment to:
PO Box 6308
Helena, MT 59604-6308

Track a refund by visiting the DOR Website and clicking on the Taxpayer Access Point button. For questions about amended returns or previously filed returns, call 866-859-2254.

Do You Have Enough State Taxes Taken From Your Paychecks?

Taxpayers who are self-employed and those who do not have enough state taxes taken out of their pensions or paychecks may have to pay quarterly estimated taxes. Use Form ESW-I to determine estimated taxes. Pay estimated taxes online at the DOR website by clicking on "Online Services." To mail the payments to the Department of Revenue, send them with the Form-IT payment voucher to:
PO Box 6309
Helena, MT 59604-6309

Income Tax Considerations

Social Security Benefits: Social Security income is taxed at the same level as federal taxes, meaning some benefits may be taxable depending on your total income.

Military Income: Active-duty and combat pay are exempt from Montana taxes. Military retirement pay is generally taxable, but resident military retirees may qualify for partial exemptions starting in 2024.

Native American Income: Enrolled tribal members living on their reservation can take exemptions on specific types of income.

Retirement Income: All retirement income is taxed as ordinary income, but seniors 65 and older receive the $5,500 exemption.

Late Tax Filing

Taxpayers who do not file their returns by April 15 must pay the lesser of $50 or 5% of the unpaid tax. If taxpayers file their returns on time but do not pay the tax they owe by April 15, they are charged between 1.2% and 1.5% of the amount they owe for each month the amount remains unpaid. When taxpayers do not file a return within 60 days of receiving a notice from the DOR, they may be fined between $1,000 and $10,000 in addition to the original penalty.

Available Tax Credits

Montana offers several tax credits to help reduce your liability:

• Earned Income Tax Credit: 10% of the federal EITC
• Credit for Income Taxes Paid to Another State: Prevents double taxation
• Adoption Credit: $5,000 per eligible child ($7,500 for foster care adoptions)
• Elderly Homeowner/Renter Credit: Up to $1,150 refundable credit
• Qualified Endowment Credit: 40% of donations to Montana endowments, up to $15,000

Frequently Asked Questions

Does Montana have a sales tax?
No, Montana is one of only five states without a general state sales tax, though some resort communities may impose local resort taxes.

What if I'm a nonresident military member stationed in Montana?
You only need to file a Montana return if you earn civilian income from Montana sources. Military pay alone doesn't require filing.

Are there reciprocal agreements with other states?
Yes, Montana has a reciprocal agreement with North Dakota, meaning residents of either state working in the other don't pay income tax to the work state.

Note: States & U.S. territories may make changes to their tax laws with little notice. We do our best to keep this information up-to-date, but it is provided on an "AS IS" basis. For more see our terms.