MontanaProposal sets Montana income-tax brackets by filing status
Montana taxpayers would use filing-group thresholds for regular income and long-term gains, and the Department of Revenue would adjust both sets of brackets for inflation starting in 2026.
What it does
The proposal sets a 4.7% rate up to a filing-group threshold and a 5.9% rate on income above it. Thresholds range from $100,000 to $200,000.
The proposal sets a 3.0% rate on some long-term gains and a 4.1% rate on gains above a filing-group threshold. Other taxable income can lower that threshold or make all gains subject to the 4.1% rate.
The proposal uses an inflation measure based on June 2024 prices to adjust both sets of brackets each year, beginning in tax year 2026.
Argument forTaxpayers could have more income taxed at 4.7% before the 5.9% rate applies.
Argument againstHigher income thresholds could reduce tax revenue, leaving the state with less money available for public services.
More detail
The proposal sets income-tax rates and thresholds for different filing groups. The proposed 4.7% rate applies to the first $200,000 for joint filers and surviving spouses, $150,000 for heads of household, and $100,000 for other individuals, separately filing married people, estates, and trusts. The 5.9% rate applies above each threshold. If approved, the proposal would apply to tax years beginning after December 31, 2024.
The proposal sets tax rates for net long-term capital gains. The proposal applies to net long-term capital gains for the same filing groups and uses thresholds of $200,000 for joint filers and surviving spouses, $150,000 for heads of household, and $100,000 for other individuals, separately filing married people, estates, and trusts. The lower-rate threshold is reduced by taxable income that is not net long-term capital gains. If that other income meets or exceeds the threshold for the filing group, all net long-term capital gains are taxed at 4.1%. If approved, the proposal would apply to tax years beginning after December 31, 2024.
The proposal directs the Department of Revenue to adjust the income and capital-gains brackets for inflation. The adjustment covers both regular income-tax brackets and net long-term capital-gains brackets. The department would multiply bracket amounts by the modified inflation factor and round cumulative brackets to the nearest $100. The modified factor uses the June 2024 consumer price index in place of the June 2023 index. The modified inflation factor would not apply until tax year 2026.
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Where it stands
- Introduced
- Died
Looking ahead
No hearings or votes scheduled.
History
- 2025
- May 23(H) Died in CommitteeDied
- Apr 16(H) Tabled in Committee - (H) TaxationMinor
- Vote recorded to_table. Result: pass.Lower
- Apr 9(H) Hearing - (H) Taxation
- Apr 9(H) Hearing Canceled - (H) Taxation
- Apr 7(H) Hearing - (H) Taxation
- Apr 7(H) Hearing Canceled - (H) Taxation
- Apr 6(H) Hearing - (H) Taxation
- Apr 4(H) 1st Reading
- Apr 4(H) Referred to Committee - (H) TaxationMinor
- Apr 3(S) Transmitted to House
- Vote recorded Do Pass. Result: pass.Upper
- Apr 3(S) 3rd Reading
- Apr 3(S) Scheduled for 3rd ReadingMinor
- Apr 2(S) Motion
- Vote recorded Take SB 203 from Comm-Yakawich. Result: pass.Upper
- Vote recorded to_table. Result: pass.Upper
- Apr 2(S) Tabled in Committee - (S) Finance and ClaimsMinor
- Apr 1(S) Hearing - (S) Finance and Claims
- Mar 31(S) Rereferred to Committee - (S) Finance and ClaimsMinor
- Vote recorded Do Pass. Result: pass.Upper
- Mar 31(S) 2nd ReadingMinor
- Mar 31(S) Scheduled for 2nd ReadingMinor
- Mar 28(S) Committee Report - (S) Taxation
- Vote recorded do_pass. Result: pass.Upper
- Mar 28(S) Committee Executive Action - (S) Taxation
- Feb 3(S) Hearing - (S) Taxation
- Jan 31(S) Fiscal Note Printed
- Jan 31(S) Fiscal Note Signed
- Jan 30(S) Fiscal Note ReceivedMinor
- Jan 24(S) Fiscal Note Requested
- Jan 24(S) Referred to Committee - (S) TaxationMinor
- Jan 23(S) 1st Reading
- Jan 22(S) Introduced
- Jan 21(LC) Draft Delivered to Requester
- Jan 15(LC) Draft Ready for Delivery
- Jan 15(LC) Draft in Assembly
- Jan 15(LC) Draft in Final Drafter Review
- Jan 15(LC) Draft in Input/Proofing
- Jan 15(LC) Draft in Edit
- Jan 15(LC) Draft in Legal Review
- Jan 13(LC) Drafter AssignedIntroduced
Taxes & Budget