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.

Learn More about ARPA

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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.

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.

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.

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.