Montana
Social Security benefits are taxable here. Even more, the method used for federal returns is slightly similar to the method used to calculate the taxable amount for this state’s income tax purposes. But, there are a couple of differences.
For example, the taxable amount in Montana may differ from the federal taxable amount. There is no state sales tax, and resort areas such as Big Sky, Red Lodge, and West Yellowstone have local sales taxes. The income tax range is as low as 1% (on up to $3,100 of taxable income), and as high as 6.9% (on taxable income over $18,800).