HELENA – The vast majority of Montanans will pay less in federal income tax after the new Republican tax reform bill takes effect in January, according to new analysis from the state Department of Revenue.
The agency analysis says more than three-quarters of the roughly 461,000 Montana households that file federal tax returns will receive an income tax cut of at least $50 a year and at least 2 percent of what they currently pay. About 20 percent of households will see a small change – an increase or decrease of less than $50 or 2 percent of their current taxes. Just over 1.5 percent will see a larger tax increase.
Overall, Revenue estimates Montanans will save a total of more than $746 million in federal income tax next year. Just under half of that savings – about $356 million – will go to the top 10 percent of income earners.