Montana has progressive income tax rates from 4.7% to 5.9%, while Wyoming has no state income tax (0%). Moving to Wyoming saves $5,600/year on $100k income. Neither state has sales tax, making both attractive for shoppers. Property taxes are similar (MT 0.74% vs WY 0.56%). Overall, Wyoming offers better tax advantages, but Montana has more amenities (Missoula, Bozeman, Billings metros) and job opportunities. The MT-WY border is popular for tax planning.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

🏔️ Montana

4.7-5.9%

Progressive (Was Flat)

2 brackets, up to 5.9%

🦬 Wyoming

0%

No Income Tax

Constitutional prohibition

Typical Annual Savings

At $100,000 income:

$5,600

That is $467/month back in your pocket!

Tax Savings by Income Level

IncomeMT TaxWY TaxSavings10-Year
$50,000 $2,650$0$2,650$26,500
$100,000 $5,600$0$5,600$56,000
$200,000 $11,500$0$11,500$115,000
$500,000 $29,200$0$29,200$292,000
💡

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Moving from Montana to Wyoming? Multi-state returns are tricky—MT has income tax, WY doesn't. Get matched with a CPA who specializes in Mountain West state moves.

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Montana Pros and Cons

✅ Pros

  • No sales tax: $0 (same as WY) perfect for large purchases
  • Better amenities: Missoula 120K, Bozeman 130K (vs Cheyenne 100K)
  • More jobs: Tech boom in Bozeman, healthcare in Billings
  • University towns: U Montana, Montana State bring culture/innovation
  • Outdoor recreation: Glacier National Park, Yellowstone access, skiing

❌ Cons

  • Income tax: 4.7-5.9% progressive costs $5,600 on $100k, $29,200 on $500k
  • Higher property tax: 0.74% (vs WY 0.56%) costs $450-$1,800 more/year
  • Expensive housing: Bozeman median $725k (vs Cheyenne $350k, 52% cheaper)
  • Harsh winters: -30°F, heavy snow (similar to WY)
  • Population boom: Housing crisis, locals priced out by transplants

Wyoming Pros and Cons

✅ Pros

  • Zero income tax: Save $5,600/year on $100k, $29,200 on $500k
  • Lower property tax: 0.56% (lowest in US) saves $450-$1,800/year
  • Cheaper housing: Cheyenne median $350k (vs Bozeman $725k, 52% cheaper)
  • Mineral revenue: State funded by oil/gas (no need for high taxes)
  • No sales tax: $0 (same as MT) perfect for large purchases

❌ Cons

  • Very remote: Cheyenne only 100K (vs MT 120-130K metros)
  • Limited jobs: Resource extraction dominant, few other opportunities
  • Harsh winters: -30°F, heavy snow (similar to MT)
  • Windy: Constant 30-40 mph winds (worse than MT)
  • Limited culture: No university towns, less arts/music than MT

Frequently Asked Questions

Q: How much will I save moving from Montana to Wyoming?

On $100,000 income, Wyoming saves $5,600/year in income tax (MT 5.6% vs WY 0%). WY also has lower property tax (0.56% vs MT 0.74%). On a $500k home, WY pays $2,800/year vs MT $3,700/year—difference of $900/year. Total savings: $6,500/year. Over 10 years: $65,000. Both states have no sales tax (identical). However, WY housing is 52% cheaper in Cheyenne vs Bozeman.

Q: Why does Wyoming have no income tax but Montana does?

Mineral revenue. Wyoming generates massive revenue from oil, gas, and coal extraction on state and federal lands. This revenue funds state services, eliminating need for income tax. Montana has some mineral extraction but not enough to fund entire budget. MT relies on income tax (5.9% top rate) to fund schools, roads, healthcare. WY's low taxes are sustainable as long as energy demand continues.

Q: Is there significant Montana to Wyoming migration?

Yes, growing trend. In 2023, 3,472 people moved MT → WY (vs 2,134 WY → MT), net gain of 1,338 for Wyoming. Migration drivers MT → WY: no income tax (save $5,600+ annually), lower property tax, cheaper housing (Cheyenne 52% cheaper than Bozeman). Reverse migration (WY → MT) driven by: better job market (Bozeman tech boom), university towns, cultural amenities.

Q: Which state is better for remote workers?

Montana wins for remote workers: better internet (Bozeman/Missoula fiber), university town culture, outdoor recreation (Glacier, Yellowstone), and growing tech community. Wyoming wins for: $5,600/year tax savings, lower cost of living, and proximity to Denver (1.5 hours). Both have no sales tax (great for online shopping). Choose MT for quality of life. Choose WY for tax savings.

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