Idaho has a flat 5.8% income tax, while Montana charges progressive rates from 4.7% to 5.9%. Income taxes are nearly identical—Idaho saves $100/year on $100k income. The key difference: Idaho has 6.03% sales tax while Montana has NONE (0%). Property taxes favor Idaho (0.63% vs MT's 0.74%). Overall, tax differences are minimal—choose based on lifestyle and job opportunities. Both states see explosive growth from California/Washington refugees.

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

🥔 Idaho

5.8%

Flat Rate

Flat 5.8% on all income

🏔️ Montana

4.7-5.9%

Progressive

2 brackets, up to 5.9%

Typical Annual Savings

At $100,000 income:

$100

That is $8/month back in your pocket!

Tax Savings by Income Level

IncomeID TaxMT TaxSavings10-Year
$50,000 $2,900$2,650-$250-$2,500
$100,000 $5,800$5,600-$200-$2,000
$200,000 $11,600$11,500-$100-$1,000
$500,000 $29,000$29,200$200$2,000
💡

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Idaho Pros and Cons

✅ Pros

  • Lower property tax: 0.63% (vs MT 0.74%) saves $275-$1,100/year
  • Boise boom: Fastest-growing metro, tech hub (Micron, HP, Albertsons)
  • Cheaper housing: Boise median $485k (vs Bozeman $725k, 33% cheaper)
  • Milder climate: Boise winters warmer than MT (-5°F vs -30°F)
  • More jobs: Boise 765K metro (vs Bozeman 130K, Missoula 120K)

❌ Cons

  • Sales tax: 6.03% (vs MT 0%) costs $603/year on $10k spending
  • Slightly higher income tax: 5.8% flat (vs MT 5.6% effective) costs $200 on $100k
  • Population boom: Housing crisis, traffic, locals priced out
  • Limited outdoor access: Not as dramatic as MT mountains/Glacier
  • Hot summers: 100°F+ regularly (vs MT milder)

Montana Pros and Cons

✅ Pros

  • No sales tax: $0 (vs ID 6.03%) saves $603/year on $10k spending
  • Slightly lower income tax: 5.6% effective (vs ID 5.8%) saves $200 on $100k
  • Dramatic scenery: Glacier National Park, Yellowstone, mountain ranges
  • University towns: Missoula/Bozeman have arts, culture, innovation
  • Outdoor paradise: World-class skiing, hiking, fishing

❌ Cons

  • Higher property tax: 0.74% (vs ID 0.63%) costs $275-$1,100 more/year
  • Expensive housing: Bozeman median $725k (vs Boise $485k, 33% more)
  • Harsh winters: -30°F, heavy snow (vs Boise milder -5°F)
  • Limited jobs: Smaller metros (Bozeman 130K, Missoula 120K vs Boise 765K)
  • Population boom: Housing crisis worse than ID, locals priced out

Frequently Asked Questions

Q: Taxes are nearly identical—what's the real difference?

Sales tax vs no sales tax. Montana has 0% sales tax (saves $603/year on $10k spending). Idaho has 6.03%. However, ID has lower property tax (0.63% vs MT 0.74%). On a $500k home, ID pays $3,150/year vs MT $3,700/year—difference of $550/year. Net advantage: Idaho wins by ~$53/year after factoring in sales tax + property tax. Essentially identical tax burden—choose based on lifestyle.

Q: Boise vs Bozeman: which city is better for growth?

Boise wins for jobs and affordability: 765K metro (vs Bozeman 130K), diverse economy (tech, manufacturing, healthcare), housing 33% cheaper ($485k vs $725k), milder winters. Bozeman wins for: university town culture (Montana State), outdoor recreation (Yellowstone, skiing), natural beauty, no sales tax. Both see explosive growth from CA/WA refugees. Choose Boise for career. Choose Bozeman for lifestyle.

Q: Is there significant Idaho-Montana migration?

Yes, bidirectional. In 2023, 4,872 people moved ID → MT and 3,847 moved MT → ID (net: MT gained 1,025). Migration drivers ID → MT: no sales tax, university towns, outdoor recreation, Bozeman tech boom. Migration drivers MT → ID: cheaper housing (Boise 33% cheaper), more jobs (Boise boom), milder weather. Both states primarily gain residents from California and Washington.

Q: Which state is better for retirees?

Nearly identical for taxes: ID 5.8% flat on retirement income, MT 5.6% effective. ID wins for: milder winters (Boise -5°F vs Bozeman -30°F), more healthcare options (larger metro), cheaper housing (33% cheaper). MT wins for: no sales tax (saves $603/year), dramatic scenery, university town culture. Choose based on climate tolerance—Boise winters are far milder.

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