Montana

Poor Families in Montana Are Hit Harder by the Income Tax Than Those in Other States

 

Montana’s 1999 income tax threshold — the income level at which families begin paying income tax:	Ranking among 42 states with income taxes
For two-parent families of four: $9,100.	5th lowest
For single-parent families of three: $7,500.	5th lowest
Montana’s 1999 income tax on working-poor and near-poor families:
For families of four with incomes at the poverty line ($17,028): $227.	11th highest
For families of three with incomes at the poverty line ($13,290): $171.	9th highest
For families of three with minimum-wage earnings ($10,712): $76.	10th highest
For families of four with incomes at 125% of the poverty line ($21,285): $389.	14th highest
For families of three with incomes at 125% of the poverty line ($16,613): $283.	12th highest
Montana has consistently taxed families with incomes below the poverty line. Montana’s tax threshold for families of four has increased during the 1990s, but a substantial gap remains between the threshold and the poverty line. In 1991, a family of four owed tax when its income exceeded 47 percent of the poverty line.  For 1999, Montana’s tax threshold is 53 percent of the poverty line.