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Capital Gains Tax in Montana
By Priya Raman
No sales tax in Montana, but capital gains still get taxed.
No sales tax in Montana, but capital gains still get taxed.
Montana has no general sales tax, which sometimes leads people to assume investment income gets a pass too. It doesn't: capital gains are taxed at up to 5.90% at the state level, pushing the combined rate on a property sale to 29.7% (20% federal + 3.8% NIIT + 5.90% state).
A 1031 exchange defers the full 29.7%, not just the state's portion, by reinvesting sale proceeds into another qualifying property. Montana doesn't add extra hoops beyond the federal rules. Build the exchange in the 1031 exchange calculator and lock in your 45-day and 180-day deadlines with the timeline calculator.
Montana taxes capital gains as ordinary income, with a top rate of 5.90% at the state level. That's on top of the federal 20% and the 3.8% NIIT, for a combined 29.7%. Run a real sale, depreciation recapture included, through the capital gains tax calculator.
A Montana seller who reinvests the full proceeds through a 1031 exchange owes none of the amount above until a later sale without exchanging. Confirm your own Montana deadlines with the timeline calculator.