Montana Increases Individual Income Tax Brackets, Lowers Top Tax Rates, Increases EITC

The Montana Governor signed a law concerning individual income taxes. The law includes: 1) increasing the individual income tax brackets and lowering the top tax rate for non-capital gains income over two years to 5.65 percent in tax year 2026 and 5.4 percent in tax year 2027; and 2) increasing the Earned Income Tax Credit (EITC) to 20 percent of the federal EITC in tax year 2026. The law takes effect on Oct. 1, with certain sections of the law effective Jan. 1, 2026, and Jan. 1, 2027. [H.B. 337, enacted 04/28/25]

This story was produced by Bloomberg Tax Automation, ...