MontanaHB 33769th Legislature, Regular Session (2025)HouseWALLET

Revise income tax laws to lower income taxes

Sponsored By: Brandon Ler (Republican)

Became Law

Taxation--Individual IncomeRevenue, StateTaxation (Generally)

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Bigger earned income credit in Montana

Beginning January 1, 2026, the Montana earned income tax credit equals 20% of your federal credit. The credit is refundable, so you can get money back even if you owe no state tax. You must be a Montana resident who qualifies for the federal Earned Income Tax Credit. The credit is reduced when earned income is treated as a dividend from an agricultural organization under federal law.

Lower Montana tax rates from 2027

Starting January 1, 2027, Montana sets lower rates and higher brackets. Married filing jointly pay 4.7% on the first $130,000 and 5.4% above; heads of household pay 4.7% on the first $97,500 and 5.4% above; single or married filing separately, estates, and trusts pay 4.7% on the first $65,000 and 5.4% above. Long-term capital gains use the same thresholds at 3.0% in the lower bracket and 4.1% above. Beginning with tax year 2028, the Department updates bracket amounts each year using a modified inflation factor and publishes them by November 1.

One-year lower 2026 Montana tax rates

For tax year 2026, Montana lowers income tax rates and raises brackets. Married filing jointly pay 4.7% on the first $95,000 and 5.65% above; heads of household pay 4.7% on the first $71,250 and 5.65% above; single or married filing separately, estates, and trusts pay 4.7% on the first $47,500 and 5.65% above. Long-term capital gains use the same thresholds and are taxed at 3.0% in the lower bracket and 4.1% above. These 2026 rules end December 31, 2026.

Sponsors & Cosponsors

Sponsor

  • Brandon Ler

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 279 • No: 210

House vote 4/22/2025

Do Concur

Yes: 34 • No: 16

House vote 4/18/2025

AMD-HB0337.003.001 Hertz D/PASS

Yes: 46 • No: 2

House vote 4/18/2025

AMD-HB0337.003.002 Dunwell D/PASS

Yes: 13 • No: 36

House vote 4/18/2025

Do Concur As Amended

Yes: 32 • No: 17

House vote 4/2/2025

Do Pass

Yes: 55 • No: 40

House vote 4/1/2025

Do Pass

Yes: 57 • No: 42

House vote 4/1/2025

AMD-HB0337.002.001 Thane DO PASS

Yes: 42 • No: 57

Actions Timeline

  1. Chapter Number Assigned

    4/28/2025House
  2. Signed by Governor

    4/28/2025House
  3. Transmitted to Governor

    4/25/2025House
  4. Signed by President

    4/25/2025Senate
  5. Signed by Speaker

    4/25/2025House
  6. Returned from Enrolling

    4/25/2025House
  7. Sent to Enrolling

    4/23/2025House
  8. 3rd Reading Concurred

    4/22/2025Senate
  9. Revised Fiscal Note Received

    4/22/2025House
  10. 2nd Reading Concurred as Amended

    4/18/2025Senate
  11. 2nd Reading Motion to Amend Failed

    4/18/2025Senate
  12. 2nd Reading Motion to Amend Carried

    4/18/2025Senate
  13. Revised Fiscal Note Requested

    4/17/2025House
  14. Committee Report--Bill Concurred as Amended

    4/16/2025Senate
  15. Committee Executive Action--Bill Concurred as Amended

    4/16/2025Senate
  16. Hearing

    4/4/2025Senate
  17. Referred to Committee

    4/3/2025Senate
  18. First Reading

    4/3/2025Senate
  19. Transmitted to Senate

    4/3/2025House
  20. 3rd Reading Passed

    4/2/2025House
  21. 2nd Reading Passed

    4/1/2025House
  22. 2nd Reading Motion to Amend Failed

    4/1/2025House
  23. Committee Report--Bill Passed

    3/29/2025House
  24. Committee Executive Action--Bill Passed

    3/28/2025House
  25. Fiscal Note Printed

    3/3/2025House

Bill Text

  • Enrolled

    4/23/2025

  • As Amended (Version 4)

    4/18/2025

  • As Amended (Version 3)

    4/17/2025

  • As Amended (Version 2)

    2/20/2025

  • Introduced

    1/29/2025

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