Do you earn tips? Montana now taxes them.

Among several changes to Montana’s income tax system that took effect at the beginning of the year is a provision that makes income from tips subject to state taxes. The shift aligns Montana with the federal tax system, in which tips have long been taxed alongside salaries and wages. It also means that many service-sector workers will likely have their state income tax obligation increased by hundreds of dollars a year. The change was made by the 2021 Legislature as part of Senate Bill 399, a comprehensive reform measure that reshaped many parts of Montana’s income tax system, including