Retire in Montana: 2026 Tax & Cost of Living Guide
No sales tax and a favorable 4.1% flat capital gains rate. Social Security and pensions partially taxed above moderate income thresholds.
State income tax
Progressive — top rate 5.90%
Social Security
Taxed
Estate tax
None
Property tax
0.74%
How Montana Taxes Retirement Income
- Social Security
- Exempt for AGI under $25K single / $32K joint; phased-partial taxation above
- Public pensions (state/federal)
- Taxed
- Private pensions
- Taxed
- 401(k) / IRA withdrawals
- Taxed
Exemption / exclusion
Data not yet verified for this state. Consult a state tax professional.
What Would You Pay in State Income Tax?
Rough estimates at the top marginal rate (actual effective rate will be lower for most retirees due to brackets, exemptions, and standard deduction):
| Annual Retirement Income | Estimated State Tax | Effective Rate |
|---|---|---|
| $50,000 | $2,950 | 5.9% |
| $100,000 | $5,900 | 5.9% |
| $200,000 | $11,800 | 5.9% |
Capital Gains in Montana
Long-term capital gains at a flat 4.1% (lower than top 5.9% on ordinary income)
We don't have detailed cost-of-living data for a city in Montana yet. See our city guides for 300+ other cities worldwide, or compare Montana against other US states below.
States With No Income Tax
Compare Against Other States
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Ranked by tax-friendliness for retirees. Grouped by income-tax type.
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Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.