Montana

Montana inheritance tax repealed Nov 2000; no estate tax for deaths after 2004

“Montana's inheritance tax was repealed in November 2000 and does not apply to any death after January 1, 2001. Montana does not have an estate tax for deaths after 2004.”

Note: Two verbatim sentences; may not be adjacent in layout. Page does not name Initiative I-115, so that attribution stays unverified from this source.

Montana taxes net long-term capital gains at 3.0%/4.1%, stacked after ordinary income

“2025 Net Long-Term Capital Gains Tax Rates ; Single and Married Filing Separately... First $21,100 of capital gains minus Montana Ordinary Income 3.0% Net long-term capital gains exceeding $21,100 minus Montana Ordinary Income 4.1% Montana Ordinary Income exceeds $21,100 4.1%”

Note: The statutory home of the rate schedules is MCA 15-30-2103 (the citation id's 15-30-2120 label is a misnomer; the id is immutable, the authority field controls). Montana taxes net long-term capital gains at a reduced rate: 3 percent on net long-term capital gains not exceeding the 5.9 percent ordinary income bracket threshold, and 4.1 percent on net long-term capital gains exceeding that threshold. MFJ 2025 thresholds: 4.7%/3.0% bracket up to $42,200; 5.9%/4.1% above. The NLTCG schedule stacks after ordinary income fills the lower bracket first, so actual effective NLTCG rate depends on the mix of ordinary vs. capital income. Thresholds change in 2026/2027 per HB 337. Montana conforms to IRC §1222 netting and federal carryforward. The harvest-rule choice ties for an all-LT estimand.

Montana TY2026: top ordinary rate 5.65%; 4.7% bracket widened to $95,000 MFJ / $47,500 single

“the highest marginal tax rate will decrease from 5.9% to 5.65%, and the 4.7% lower rate will apply to income up to $95,000 for joint filers, $71,250 for Head of Household, and $47,500 for all other statuses”

Note: Effective January 1, 2026 per the DOR page. HB 337 drops the top rate again to 5.4% for TY2027. The net-long-term-capital-gains rates stay 3.0%/4.1% for 2026-2027 (DOR: 'The rates on long-term capital gains remain at 3.0% and 4.1%'); only their thresholds track the widened ordinary brackets.

Montana taxes net long-term capital gains at 3.0%/4.1%, stacked after ordinary income

“2025 Net Long-Term Capital Gains Tax Rates ; Single and Married Filing Separately... First $21,100 of capital gains minus Montana Ordinary Income 3.0% Net long-term capital gains exceeding $21,100 minus Montana Ordinary Income 4.1% Montana Ordinary Income exceeds $21,100 4.1%”

Note: The statutory home of the rate schedules is MCA 15-30-2103 (the citation id's 15-30-2120 label is a misnomer; the id is immutable, the authority field controls). Montana taxes net long-term capital gains at a reduced rate: 3 percent on net long-term capital gains not exceeding the 5.9 percent ordinary income bracket threshold, and 4.1 percent on net long-term capital gains exceeding that threshold. MFJ 2025 thresholds: 4.7%/3.0% bracket up to $42,200; 5.9%/4.1% above. The NLTCG schedule stacks after ordinary income fills the lower bracket first, so actual effective NLTCG rate depends on the mix of ordinary vs. capital income. Thresholds change in 2026/2027 per HB 337. Montana conforms to IRC §1222 netting and federal carryforward. The harvest-rule choice ties for an all-LT estimand.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

MT taxes out-of-state muni bond interest; MT bonds exempt MCA §15-30-2110

“Interest and mutual fund dividends from state, county, or municipal bonds from other states. Enter the total amount of tax-exempt interest income you received from bonds of other states or local governments.”

Note: MCA §15-30-2110; confirmed in 2024 Montana Form 2 Instructions.

MT taxes out-of-state muni bond interest; MT bonds exempt MCA §15-30-2110

“Interest and mutual fund dividends from state, county, or municipal bonds from other states. Enter the total amount of tax-exempt interest income you received from bonds of other states or local governments.”

Note: MCA §15-30-2110; confirmed in 2024 Montana Form 2 Instructions.

Montana conforms to IRC §1400Z-2 QOZ gain deferral and exclusion

“(1) The items in subsection (2) are added to and the items in subsection (3) are subtracted from federal taxable income to determine Montana taxable income.”

Note: MCA 15-30-2120 starts from federal taxable income and lists no §1400Z-2 addback in subsection (2), so the federal QOZ deferral and exclusion flow into the Montana base.

Montana conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity

“(1) The items in subsection (2) are added to and the items in subsection (3) are subtracted from federal taxable income to determine Montana taxable income.”

Note: MCA 15-30-2120 starts from federal taxable income and lists no §1202 addback in subsection (2), so federally excluded QSBS gain never enters the Montana base. Mont. Admin. R. 42.15.318(1)(c) references a QSBS add-back in the context of NOL recomputation, which creates potential ambiguity, but general conformity to §1202 is the baseline position under MCA 15-30-2120.

Montana subtraction for U.S. obligation interest requires exemption from state income taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption

“There is allowed as a deduction from adjusted gross income: interest received on United States government obligations to the extent included in gross income for federal income tax purposes if the income is exempt from state income taxes under the laws of the United States.”

Note: MCA §15-30-2131 requires the income be 'exempt from state income taxes under the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute. No Montana DOR named-entity publication found; confidence: medium.

Montana taxes net long-term capital gains at 3.0%/4.1%, stacked after ordinary income

“2025 Net Long-Term Capital Gains Tax Rates ; Single and Married Filing Separately... First $21,100 of capital gains minus Montana Ordinary Income 3.0% Net long-term capital gains exceeding $21,100 minus Montana Ordinary Income 4.1% Montana Ordinary Income exceeds $21,100 4.1%”

Note: The statutory home of the rate schedules is MCA 15-30-2103 (the citation id's 15-30-2120 label is a misnomer; the id is immutable, the authority field controls). Montana taxes net long-term capital gains at a reduced rate: 3 percent on net long-term capital gains not exceeding the 5.9 percent ordinary income bracket threshold, and 4.1 percent on net long-term capital gains exceeding that threshold. MFJ 2025 thresholds: 4.7%/3.0% bracket up to $42,200; 5.9%/4.1% above. The NLTCG schedule stacks after ordinary income fills the lower bracket first, so actual effective NLTCG rate depends on the mix of ordinary vs. capital income. Thresholds change in 2026/2027 per HB 337. Montana conforms to IRC §1222 netting and federal carryforward. The harvest-rule choice ties for an all-LT estimand.

U.S. Treasury interest exempt from Montana income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from Montana income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

Montana income tax TY2025: MFJ income threshold is exactly double Single/MFS threshold (marriage neutral)

“Married Filing Jointly and Qualifying Surviving Spouse... First $42,200 of Montana Ordinary Income 4.7% Montana Ordinary Income exceeding $42,200 5.9%”

Note: Montana TY2025 DOR tax tables: the MFJ ordinary-income threshold ($42,200) is exactly double the Single/MFS threshold ($21,100), so the schedule is marriage neutral.

Montana Uniform Disposition of Community Property Rights at Death Act: short title

“72-9-101. Short title. This part shall be known and may be cited as the 'Uniform Disposition of Community Property Rights at Death Act'.”

Note: Montana enacted the Uniform Disposition of Community Property Rights at Death Act (MCA Title 72, Chapter 9, Part 1). Montana is a common-law property state. The Act recognizes community property character of assets brought from community property states and governs their disposition at death.

Montana conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference

“The items in subsection (2) are added to and the items in subsection (3) are subtracted from federal taxable income to determine Montana taxable income.”

Note: Mont. Code Ann. §15-30-2120 builds Montana taxable income by adding to and subtracting from federal taxable income, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.