With no sales or inventory tax, it’s no wonder that Montana earns many accolades as a business-friendly state. Most recently, Montana ranked eighth in the Tax Foundation’s 2013 State Business Tax Climate Index.
It is important to note that each state legislative session brings changes and new programs that may not be listed immediately. Local tax incentives also usually affect state taxes and must be reviewed by the Department of Revenue for approval. For information about existing incentives and other assistance programs, make sure to visit this site’s Project Funding & Incentives page.
That said, here is a basic outline of tax rates and incentives for businesses:
|Corporation License Tax||6.75%|
|Sales & Excise Tax||NONE|
|Business Equipment Tax||0% to 3%, depending on depreciated value|
|Individual Income Tax||1% to 6.9% of taxable income|