American Rescue Plan Act
The federal American Rescue Plan Act (ARPA) of 2021, passed in March, 2021, providing nearly $2 trillion of funding to all states for projects to support public health expenditures; to provide premium pay for essential workers; to reestablish lost government services; and to invest in water, sewer, and broadband infrastructure. Montana received about $930 million in ARPA funds; however, the act imposed limitations on the states’ use of the funds. It specifically prohibits a state from using the funds to offset a reduction directly or indirectly in tax revenue.
ARPA was passed while the 67th Montana Legislature was in session. At that time, Montana legislators had proposed bills to lower tax rates and to offer tax credits and deductions. If these bills were passed unchanged, they could have jeopardized Montana’s ARPA funding. In an effort to keep the ARPA funds, these bills were amended to include an ARPA Savings Clause.
Recent News from the Business & Income Tax Division
- Department Rulemaking Actions for August 5, 2022
- Governor Gianforte Extends Tax Deadline for Montanans Impacted by Flooding
- Department Rulemaking Filing for July 22, 2022
- Department of Revenue Rulemaking Actions for June 10, 2022
- Department of Revenue Rulemaking Actions for May 27, 2022
- Gov. Gianforte Extends Montana Tax Return Deadline One Week
- Department Rulemaking Notices for April 15, 2022
- Estimated Cannabis Sales for March 2022 Now Available
- Increased MEDIA Tax Credit – Tax News You Can Use
- Mobile Home Park Exclusion
- Commercial Property Income and Expense Reporting
- House Bill 53
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Individual Income Tax
If you live or work in Montana you may need to file and pay individual income tax.
2021 Individual Income Tax Returns filed on extension are due October 17, 2022.
- Where’s My Refund?
- Individual Income Tax Filing Options
- Individual Filing Requirements
- Individual Filing Status
- Individual Income Tax Tables
- Individual Tax Records
- Maxing Tax Payments
- Requesting a Payment Plan
- Montana Residency
- Remote Working
- Military Personnel and Spouses
- Native American Filers
- Nonfilers
- Retirements, Annuities, and Pensions
- Taxpayer Resources and Programs
Business Taxes
Businesses in Montana pay income taxes based on how they are registered with the IRS. In addition to income tax, businesses may also owe wage withholding taxes, natural resource taxes, or other, miscellaneous taxes.
Alcoholic Beverage Taxes
The Montana Department of Revenue administers the state’s licensing, distribution, and taxation on Alcoholic Beverages. You can learn more about licensing and distribution from the Alcoholic Beverage Control Division.
For Alcoholic Beverage Taxes, please select the tax type below.
Natural Resource Taxes
Montana collects taxes on natural resources harvested in the state including coal, metal, oil, and natural gas.
- Bentonite Production Tax
- Cement and Gypsum Producers License Tax
- Coal Gross Proceeds Tax
- Coal Severance Tax
- Electrical Energy Producers License Tax
- Metal Mines Gross Proceeds Tax
- Metal Mines License Tax
- Micaceous Mineral Mines License Tax
- Mineral Royalty Withholding Tax
- Miscellaneous Mines Net Proceeds Tax
- Oil and Natural Gas Production Tax
- Resource Indemnity Trust & Ground Water Assessment Tax
Miscellaneous Taxes and Fees
Montana has several taxes covering specific businesses, services, or locations.
These taxes include telecommunications, tobacco, tourism, cannabis, and health care facilities among others.
- Alcohol Taxes
- Cannabis Tax
- Cigarette Taxes
- Consumer Counsel Fee (CCT)
- Contractor’s Gross Receipts Tax (CGR)
- Emergency Telephone System Fee
- General Sales Tax
- HELP Entity Fee (HEF)
- HELP Integrity Fee (HIF)
- Hospital Facility Utilization Fee (HUF)
- Intermediate Care Facility Utilization Fee (ICFUF)
- Local Resort Tax
- Lodging Facility Sales and Use Tax
- Moist Snuff Taxes
- Nursing Facility Utilization Fee (NFBT)
- Opioid Seller’s License
- Other Tobacco Product Taxes
- Public Service Regulation Fee (PSR)
- Rental Vehicle Tax (RVT)
- Retail Telecommunications Excise Tax (RTE)
- TDD Telecommunications Service Fee
- Unclaimed Property Holders
- Unlocatable Mineral Trusts
- Wholesale Energy Transaction (WET) Tax
Wage Withholding Tax
Wage withholding is the money held back by an employer to pay an employee’s income tax. This is the employee’s money, held in trust by the employer until paid to the state.
Employers can find more information in the Montana Withholding Tax Table and Guide.
Income Tax Exclusions, Exemptions, and Deductions
- Family Education Savings Account (529 Plan) Deduction
- First-Time Home Buyer Savings Account
- Standard Deductions on Individual Income Tax Tables
- Military Personnel and Spouses
- Montana ABLE Account (529A Plan) Deduction
- Montana Medical Care Savings Account
- Native American Filers
- Retirement Annuities, and Pensions
Estates and Trusts
An estate or trust is managed by a fiduciary, also known as a guardian, trustee, executor, administrator, receiver, or conservator. The fiduciary is responsible for filing and paying taxes on an estate or trust’s behalf.
Income Tax Credits
- Application and Affidavit for Certification and Approval of Mineral and Coal Exploration Incentive Credits
- Application to be Considered a Research and Development Firm
- Child and Dependent Care Expense Deduction
- Mineral and Coal Exploration Incentive Credit (Form MINE-CRED)
- MEDIA Compensation Claim (Form MEDIA-Comp)
- MEDIA Credit Application (Form MEDIA-Credit)
- MEDIA Credit Claim Form (Form MEDIA-CLAIM)
- MEDIA Credit Transfer (Form MCT)
- MEDIA Credit Payment Voucher (Form MEDIA)
- MEDIA Credit Submission of Costs (Form MS-SOC)
- Montana Farm and Ranch Risk Management Account (Form FRM)
- Montana First-time Home Buyer Savings Account (Form FTB)
- Recycle Credit/Deduction (Form RCYL)
- Qualified Education Contribution Credit Guide
- Qualified Endowment Credit (Form QEC)
- Veterans’ Program Contribution/Deduction (Form VT)
Please Note: The following 15 income tax credits have been retired after Tax Year 2021. Learn More.
- Adoption Credit
- Alternative Energy Production Credit
- Alternative Energy System Credit
- Alternative Fuel Credit
- Biodiesel and Blending Credit
- College Contribution Credit
- Dependent Care Assistance and Referral Credit
- Elderly Care Credit
- Emergency Lodging Credit
- Empowerment Zone Credit
- Energy Conservation Installation Deduction
- Geothermal System Credit
- Health Insurance for Uninsured Montanans Credit
- Mineral and Coal Exploration Incentive Credit
- Oilseed Crush Facility Credit
Tobacco and Nicotine Taxes
Montana requires all wholesalers and retailers selling tobacco products to be licensed by the Department of Revenue.
To see if a business is licensed in Montana, consult our Active Tobacco License List.
View the Cigarette Minimum Price List.
For information on approved tobacco products, see the Department of Justice Tobacco Sales and Directory.
The Department of Justice provides several resources about Tobacco product sales in Montana, including lists of all tobacco products approved for sale. They also provide a guide on the fire safety standards the State Fire Marshall uses to approve cigarettes for sale in Montana.
Tax Relief Programs
Montana has several programs which assist taxpayers with both income and property tax.
