Montana Capital Gains Tax (2026)
Montana taxes capital gains as ordinary income on a graduated scale from 4.7% up to a top rate of 5.65%. Run your own numbers with the free capital gains tax calculator, which estimates federal, NIIT, and Montana tax together.
In short: federal long-term rates of 0%, 15%, or 20% apply everywhere. Montana adds state tax on top, at up to 5.65%.
How Montana treats capital gains
Montana taxes capital gains as ordinary income on a graduated scale from 4.7% up to a top rate of 5.65%. Montana uses the federal standard deduction ($16,100 single / $32,200 married in 2026), which the estimate subtracts first.
Good news if you hold long. Montana gives long-term gains a partial exclusion or reduced rate that this site's flat estimate does not model, so your actual Montana tax on a long-term gain may be lower than the ordinary-income estimate shown by the calculator.
2026 Montana income tax brackets
| Taxable income | Rate |
|---|---|
| $0 – $47,500 | 4.7% |
| Over $47,500 | 5.65% |
Single-filer taxable income. Married thresholds are doubled.
A worked example
Say you are a single filer in Montana with $60,000 of taxable income who sells stock held over a year for a $25,000 long-term gain. Federal tax on the gain is $3,750 (all of it lands in the 15% bracket at this income; no NIIT applies below $200,000 MAGI). Montana adds an estimated $1,378, for a combined $5,128, an effective 20.5% on the gain. These figures use the same math as the calculator, 2026 federal brackets per IRS Rev. Proc. 2025-32, and state figures from the Tax Foundation's State Individual Income Tax Rates and Brackets, 2026.
Frequently asked questions
Does Montana tax capital gains?
Yes. Montana taxes capital gains as ordinary income. Montana taxes capital gains as ordinary income on a graduated scale from 4.7% up to a top rate of 5.65%.
What will I pay on a long-term gain in Montana?
Combined, our worked example ($25,000 long-term gain on $60,000 of income, single) comes to $5,128: $3,750 federal plus $1,378 Montana tax, an effective 20.5%.
Do I still owe federal capital gains tax in Montana?
Yes. Federal capital gains tax (0%, 15%, or 20% long-term, ordinary rates short-term, plus the 3.8% NIIT for high earners) applies no matter your state. The free calculator estimates federal, NIIT, and Montana tax together.
More
- Every state's capital gains treatment
- Capital gains tax explained: short-term vs long-term
- Neighbors alphabetically: Missouri · Nebraska
This page is general information, not tax, legal, or financial advice. Rates and rules can change and depend on your situation. Confirm details with a tax professional, the IRS, or your state's revenue department.
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