Montana Small Business Tax Guide — 2026
Income Tax Rate
4.7% flat rate (as of 2024)
Sales Tax Rate
No sales tax
Filing Deadline
April 15 (matches federal deadline)
Montana Income Tax
Montana imposes a state income tax with rates of 4.7% flat rate (as of 2024). Self-employed individuals, freelancers, and sole proprietors pay this tax on their net business income in addition to federal income tax and federal self-employment tax (15.3%).
Self-Employment in Montana
Montana moved to a flat 4.7% income tax rate in 2024. Self-employment income is taxed at this standard rate. No separate state SE tax.
Estimated Tax Requirements
Quarterly estimated payments required if you expect to owe $500 or more. Standard federal due dates apply.
MontanaDeductions & Credits
- Montana has no sales tax — savings on all business purchases
- Montana standard deduction: 20% of AGI, up to $5,540 (single)
- Capital gains credit for certain qualifying gains
- Credit for taxes paid to other states
Business Filing Fees
LLC: $70 formation + $20 annual report. Corporation: $70 formation + $20 annual report.
Key Facts About Montana Taxes
- Montana has no sales tax — one of only five states without it
- Moved to a flat 4.7% income tax in 2024 (down from progressive rates up to 6.75%)
- Very affordable LLC costs ($70 + $20/year)
- Montana's lack of sales tax makes it attractive for certain business purchases
Track Your Montana Business Expenses
TaxTidy helps Montana freelancers and self-employed individuals track every business expense with AI-powered receipt scanning. Snap a photo of any receipt and TaxTidy instantly extracts the vendor, amount, and tax category — then maps it to the correct IRS Schedule C line. At tax time, generate an audit-ready PDF report with all your deductions organized and totaled.
Frequently Asked Questions
Does Montana have sales tax?
No. Montana is one of five states with no sales tax. This saves money on all business purchases made in the state.
What is Montana's income tax rate?
Montana has a flat 4.7% income tax rate as of 2024, down from the previous progressive system that topped at 6.75%.
When are Montana estimated taxes due?
Quarterly on April 15, June 15, September 15, and January 15. Required if you expect to owe $500 or more.
Official source: Montana Department of Revenue
TaxTidy provides expense organization tools based on the most current US tax law available to it. TaxTidy is not a CPA, Enrolled Agent, or licensed tax professional. All categorizations, deductions, and tax calculations are estimates. Please verify all data for accuracy and consult a certified tax professional before filing.
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