Senate Bill No. [number] proposes revisions to Montana's individual income tax laws, primarily focusing on reducing the top marginal income tax rate and increasing the earned income tax credit. The bill amends Section 15-30-2103, changing the tax rate for various income brackets. For married individuals filing jointly, heads of households, and other individual taxpayers, the top marginal tax rate is reduced from 5.9% to 5.4% for income exceeding specified thresholds. Additionally, the tax rate on net long-term capital gains is also lowered from 4.1% to 3.9% for similar income brackets.

Furthermore, the bill amends Section 15-30-2318 to increase the earned income tax credit from 10% to 15% of the federal credit amount. The effective dates for these changes vary, with some provisions taking effect on January 1, 2026, and others on January 1, 2027. Notably, Section 1, which includes the income tax rate reductions, is set to terminate on December 31, 2026. The bill aims to provide tax relief to residents while adjusting the earned income tax credit to better support low-income individuals and families.

Statutes affected:
LC Text: 15-30-2103, 15-30-2318
SB0323_1(1): 15-30-2103, 15-30-2318
SB0323_1(2): 15-30-2103, 15-30-2318
SB0323_1(3): 15-30-2103, 15-30-2318
SB0323_1(4): 15-30-2103, 15-30-2318
SB0323_1: 15-30-2103, 15-30-2318