* In 2021, Montana passed Senate Bill 399 which made several changes to the state’s tax code effective in 2024. The law consolidated the state’s seven tax brackets for individual income into two and reduced the top marginal rate from 6.75 percent to 6.5 percent. In 2023, the legislature further reduced this rate to 5.9 percent. Additionally, individual taxpayers will be required to use the same filing status on both federal and state returns.

* Montana will also begin taxing capital gains income at lower rates than ordinary income. Capital gains will now be taxed at rates of either 3 percent or 4.1 percent.