Quick Montana Tax Stats
| Tax Type | Rate / Info |
|---|---|
| Income Tax | Progressive; top rate 5.9% |
| Sales Tax | No statewide sales tax |
| Jock Tax | Montana taxes income earned from work performed in the state |
| Cost of Living (Range) | $75,000 – $155,000+ annual (Bozeman / Missoula lifestyle) |
| Average Home Price | ~$450,000 – $550,000 statewide; higher in Bozeman |
Income Tax in Montana
Montana uses a progressive state income tax system with a top rate of 5.9%. Unlike California or New York, Montana’s brackets are compressed and cap at a moderate level.
- Top rate reached at relatively modest income levels
- Applies to wages, bonuses, endorsements, and pass-through income
- Residents taxed on worldwide income
For professional athletes:
- Higher than Colorado (4.40%) and Utah (4.55%)
- Lower than Oregon (9.9%) and California (13.3%)
- No extreme progressive spike
Example
An athlete earning $25 million while domiciled in Montana would owe approximately $1,475,000 in state income tax. Compared to California, that’s roughly $1.7–$2+ million less per year.
Over a 4-year contract, that difference could exceed $7+ million in retained net income. Montana sits in the moderate-tax tier, not low, not high.
Sales Tax
Montana has no statewide sales tax. This is one of its most unique structural advantages. For high-income athletes:
- No tax on vehicles
- No tax on luxury goods
- No tax on large discretionary purchases
Example
Buying a $300,000 vehicle in Bozeman would generate $0 in sales tax.
Compared to states with 8–10% combined rates, that can save $20,000–$30,000+ per major purchase.
This also means that the rate at which liability purchases depreciate is significantly less than in states with high-sales-tax rates levied.
Montana offsets moderate income tax with zero consumption tax.
Based on this, Montana may not have major infrastructure and city life, but athletes in Montana will keep a lot more of their gross earnings than those residing in other high-tax states.
Jock Tax
Montana taxes income earned from work performed in the state.
- Visiting athletes owe Montana tax on duty days performed in-state.
- Montana residents owe up to 5.9% on worldwide income.
Montana does not host major NFL, NBA, MLB, or NHL franchises.
As a result:
- Jock tax exposure for professional athletes is minimal in frequency
- Residency planning becomes more relevant than in-state game allocation
Athletes residing in Montana will still owe jock taxes to other states based on away games.
Cost of Living and Housing
Montana’s cost of living varies significantly by region.
Lifestyle budgets
- Bozeman: $110k–$155k+ annually depending on property
- Missoula: slightly lower
- Rural areas: materially lower cost profile
Housing
- Statewide median home price: ~$450k–$550k
- Bozeman 3-bed/2-bath: often $600k–$800k+
- Resort / ranch properties: multi-million common
While Montana is historically viewed as low-cost, high-demand areas like Bozeman have seen sharp price increases.
Still, compared to California or New York, overall housing remains materially cheaper.
Property Tax
Montana’s 2026 property tax rates for primary residences use a tiered system based on assessed value.
The rates start at 0.76% for homes up to ~$378,000, rising to 0.90% for values up to $756,000, 1.10% up to $1.5 million, and 1.90% for higher values.
These rates reflect new, lower, and more graduated structures implemented following recent legislative changes.
For athletes playing in or near the state of Montana, this property tax tiered system can be used to the advantage of establishing residency in the state for no sales tax.
As well as, lower cost of living, lesser population density and can decide how big of a home to buy, versus getting anything available for $1+ million in major cities like Seattle, Vegas or Los Angeles.
Residency Rules
Athletes establishing domicile in Montana must:
- Obtain Montana driver’s license
- Register vehicles in-state
- Register to vote
- Establish primary residence
- Demonstrate intent to remain
Montana taxes residents on worldwide income up to 5.9%.
Example
A professional athlete establishing Montana residency would owe up to 5.9% on their base salary, bonuses and sponsorship income, but still owe jock tax to other states for away games.
Residency establishment is generally straightforward and less aggressively audited than high-tax coastal states.
Why Montana Is Structurally Interesting
- Moderate top income tax (5.9%)
- No statewide sales tax
- No extreme progressive exposure
- Limited pro franchise presence (low jock tax frequency)
- Lower housing cost than coastal markets
Montana sits between zero-tax states and high-tax progressive states.
The lack of sales tax provides structural savings for high-spending individuals, while the 5.9% income tax keeps it in the middle-tier for overall tax efficiency.
For athletes prioritizing lifestyle, land ownership, and lower audit risk, Montana can present a balanced tax environment.
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Next Athlete State Tax Reads
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- North Dakota State Athlete Taxes
- South Dakota State Athlete Taxes
- Wyoming State Athlete Taxes
- Colorado State Athlete Taxes
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Credits
Sources: Montana Department of Revenue, Tax Foundation 2025 State Tax Data, Zillow / Redfin Housing Data, APSM Proprietary Analysis
Disclaimer: This article contains general financial information for educational purposes and does not constitute professional advice.
Apostle Sports Media 