Montana
Taxes and business formation • USA 2025–2026
TL;DR
Montana at a glance — 2026 figures
State filing fees and tax position for individuals and companies registered in Montana.
| Parameter | Value |
|---|---|
| Personal income tax | See the income tax section below |
| LLC formation fee | $35.00 |
| LLC annual report fee | $0.00 |
| LLC annual report deadline | April 15 |
| LLC dissolution fee | $0.00 |
| Corporation formation fee | $35.00 |
| Corporation annual report fee | $0.00 |
State filing fees are set by the Secretary of State and change without notice — the official source is linked in each section below. Federal figures for tax year 2026 are on the 2026 tax cheat sheet.
Updated: August 2026
Corporation in Montana
Tax system of Montana
Income Tax
Montana levies a progressive personal income tax on individuals. In 2024, rates range from 4.7% to 5.9%, depending on income level. All major types of income are taxed: wages, business profits, rental income, dividends, and capital gains.
Sales Tax
One of Montana's main features is the complete absence of a statewide sales tax. This means that neither buyers nor sellers are required to pay or collect sales tax on the sale of goods or the provision of most services.
Property Tax
In Montana, property tax is levied at the county level. The average effective rate is about 0.76% of assessed value, which makes the property tax burden moderate compared with other U.S. regions. Commercial and residential real estate are taxed differently. Residential property owners can take advantage of the Residential Property Exemption, along with tax benefits for retirees, veterans, and people with disabilities.
Business Taxes
Montana levies a Corporate Income Tax at 6.75% of taxable income for C-corporations. S-corporations and LLCs are exempt from the corporate tax. All legal entities (including LLCs, corporations, and LPs) are required to file an Annual Report with the Montana Secretary of State. The filing deadline is April 15 each year. Late filing results in penalties, and prolonged delinquency can lead to administrative dissolution of the company. If you have difficulty filing this report, our firm provides services for preparing and submitting the Annual Report on time.
Tangible Personal Property Tax
Businesses that own tangible personal property (equipment, furniture, machinery, etc.) are required to file a business personal property return. The tax applies when the total value exceeds the established minimum ($300,000).
Excise Taxes
Montana imposes excise taxes on fuel, tobacco, alcohol, and medical and recreational marijuana. These taxes are levied on producers, importers, or sellers and are regulated through special licenses.
Favorable Tax Conditions
Montana is one of the few U.S. states with no sales tax at all, which makes it attractive for retail, e-commerce, and services. Despite the existing personal income tax, the rates are moderate, and reporting is simple and clear. The state also offers benefits on tangible personal property tax for small businesses, as well as programs for reimbursement or exemption from tax on new equipment used in manufacturing activities.
Compared to Other States
Montana compares favorably with most other U.S. states thanks to the absence of a sales tax. At the same time, the corporate tax rate of 6.75% is around the national average. Property tax is lower than in states with high housing costs (for example, New Jersey or California), and the requirement to report business tangible personal property is similar to that in Maryland or Pennsylvania. The flexible tax structure, absence of a franchise tax, and moderate tax burden make Montana attractive to entrepreneurs, especially those working in services, logistics, and online commerce.
Frequently asked questions
Does Montana have a personal income tax?+
Yes. Montana levies a personal income tax on residents. The current rates and brackets are set out in the income tax section on this page, with a link to the state tax authority — rates are revised by the legislature, so always check the official source before filing.
How much does it cost to register an LLC in Montana?+
The state filing fee in Montana is $35.00. On top of that you need a registered agent with a physical address in the state, and FinTaxes charges from $299 for the formation service itself.
When is the annual report due for a Montana LLC?+
The Montana annual report fee is $0.00, due April 15. Missing it typically triggers a late penalty and, if left unresolved, administrative dissolution of the company.
Do I need to live in Montana to open an LLC there?+
No. You do not need to live in Montana — or in the United States at all — to own an LLC registered there. Non-residents can form and own a US LLC; what the state requires is a registered agent with a physical in-state address. Your own tax residency is a separate question and decides which returns you file.
Can FinTaxes file my Montana state return remotely?+
Yes. FinTaxes prepares and e-files federal and Montana state returns entirely remotely, for clients anywhere in the US or abroad, as an Authorized IRS e-file Provider.
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