Montana
Overall Rating for Taxes on Retirees: Not tax-friendly
State Sales Tax: No sales tax. Resort areas such as Big Sky, Red Lodge and West Yellowstone have local sales taxes.
State Income Tax Range: Low: 1% (on up to $3,000 of taxable income); High: 6.9% (on taxable income over $17,900). Montana permits filers to deduct some of their federal income tax.
State Taxes on Social Security: Social Security benefits are taxable. The taxable amount may be different from the federally taxable amount because Montana taxes some types of income that the federal government does not, and vice versa.
Property Taxes: The median property tax on Montana’s median home value of $199,700 is $1,698.
