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SB 203 Montana Senate · 2025 Regular Session

Revise income tax brackets to lower income taxes

SB 203 would increase Montana's income tax thresholds, meaning more income would be taxed at the lower 4.7% rate instead of the higher 5.9% rate. Specifically, it raises the income level before the higher rate applies to $200,000 for joint filers, $150,000 for heads of household, and $100,000 for single filers. This change affects all Montana individual income taxpayers, potentially reducing their tax burden for income falling within the new, higher thresholds. The bill also includes retroactive application to tax years beginning after December 31, 2024.
Issues: ✓ Budget & TaxesSupports Budget & TaxesRaises tax thresholds for middle/lower-income earners, lowering tax burden per bill summary (4.7% vs 5.9% rate). Explicit tax relief aligns with 'support' indicators.95% confidence
Bill status died 4 of 5 stages cleared
Introduction
Jan 2025
Committee Review
Apr 2025
Senate Passage
Apr 2025
House Passage
Apr 2025
Governor
Introduced Jan 22, 2025 Last action May 23, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

SB0203_1(1).pdf → SB0203_1(2).pdf · 4 edits
MODERATE
This bill significantly increases Montana income tax brackets for all filers, raising the threshold for higher tax rates from $41,000 to $200,000 for married couples and from $30,750 to $150,000 for heads of household. The change lowers the overall tax burden on middle-income earners by allowing more income to be taxed at the lower 4.7% rate before hitting the 5.9% rate. Additionally, the bill updates the inflation adjustment mechanism to use June 2024 data instead of June 2023 and clarifies that these inflation adjustments will not apply until tax year 2026.
Scope change
The scope of the tax benefit expanded substantially by increasing income thresholds for all taxpayer categories, including married couples, heads of household, and single filers.
THRESHOLDS

Increased the taxable income threshold for the higher tax rate from $41,000 to $200,000 for married couples and from $30,750 to $150,000 for heads of household.

Increased the taxable income threshold for the higher tax rate from $20,500 to $100,000 for single filers.

DEFINITION

Updated the inflation adjustment calculation to use the Consumer Price Index from June 2024 instead of June 2023.

TIMELINE

Added a transition provision stating that the new inflation adjustment mechanism will not apply until tax year 2026.

Floor votes · Senate Apr 3, 2025 · House Apr 16, 2025

How they voted

31–19
Passed
Total votes 50
Apr 3, 2025
D Democratic18
6 Yea 12 Nay
66% Nay
R Republican32
25 Yea 7 Nay
78% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
38
Key actions
4
Committee
5
Amendments
2
Apr 16, 2025
House · Passed
House Vote: pass (21-0)
house
Apr 16, 2025
Amended
(H) Tabled in Committee - (H) Taxation
lower
Apr 4, 2025
Committee
(H) Referred to Committee - (H) Taxation
lower
Apr 3, 2025
Senate · Passed
Senate Vote: pass (31-19)
senate
Apr 2, 2025
Amended
(S) Tabled in Committee - (S) Finance and Claims
upper
Mar 31, 2025
Committee
(S) Rereferred to Committee - (S) Finance and Claims
upper
Mar 28, 2025
Upper · Passed
(S) Committee Report - (S) Taxation
upper
Mar 28, 2025
Upper · Passed
(S) Committee Executive Action - (S) Taxation
upper
Jan 24, 2025
Committee
(S) Referred to Committee - (S) Taxation
upper
Jan 22, 2025
Introduced
(S) Introduced
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Mike Yakawich
Mike Yakawich
RRepublican
MT
24