Montana has made the following changes for the 2024 tax year.
Filing Statuses
Under new law, Montana taxpayers must use the same filing status as their federal return.
Filing Requirements
The Montana filing requirements now follow the federal filing requirements.
Tax Rates
- Taxpayers 65 or older now receive a $5,500 subtraction from federal taxable income.
- Under Senate Bill 104, taxpayers who become residents of Montana after June 30, 2023, or who were Montana residents before receiving military retirement can exempt the lesser of:
- 50 percent of the taxpayer’s military retirement income received from Defense Finance and Accounting Service (DFAS), or
- The total Montana source income from wages, salary, or tips, along with the net income from business and farming.
Repealed Deductions
The following deductions are no longer available:
- Unemployment compensation
- Tip income for certain service industry workers
- Partial interest income deduction for taxpayers aged 65 or older
- Partial pension, annuity, and IRA deduction
- Worker’s compensation benefits not already excluded in federal adjusted gross income
- Health insurance premiums paid by an employer for an employee
- Contributions to a Montana First-Time Homebuyer Savings Account
- Deposits in a Montana Farm and Ranch Risk Management Account
- Dependent child’s income included in the taxpayer’s federal adjusted gross income
- Student loan repayments for health care professionals and qualified educators
- Partial retirement disability deduction for taxpayers under age 65
Tax Credits
- Expanded Qualified Endowment Credit - This tax credit has increased to be equal to 40% of the present value of a planned gift up to $15,000.
Further Information
For a list detailing what's new for Montana in 2024, please click here.