Side-by-side tax comparison between Alaska (no income tax) and Montana (5.65% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Alaska has no state income tax, while Montana uses a graduated system with rates of 4.7-5.65%. On a $100K salary, this creates a state tax difference of $3,673/year that Alaska residents simply don’t pay.
Montana’s graduated brackets mean the gap between these two states widens at higher salaries. At $200K, the state tax difference grows to $7,345/year, while at $50K it’s only $1,836.
Alaska wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Alaska | Montana | Difference | Winner |
|---|---|---|---|---|
| $40K | $34,320 | $32,851 | −$1,469 | Alaska |
| $50K | $42,355 | $40,519 | −$1,836 | Alaska |
| $60K | $50,390 | $48,187 | −$2,204 | Alaska |
| $75K | $61,538 | $58,783 | −$2,754 | Alaska |
| $100K | $79,125 | $75,453 | −$3,673 | Alaska |
| $120K | $93,195 | $88,788 | −$4,407 | Alaska |
| $150K | $113,751 | $108,242 | −$5,509 | Alaska |
| $200K | $148,887 | $141,542 | −$7,345 | Alaska |
| $250K | $183,264 | $174,083 | −$9,181 | Alaska |
| $300K | $215,329 | $204,311 | −$11,018 | Alaska |
Take-home pay only tells part of the story. Alaska has a cost of living index of 127 while Montana is at 97 (national average = 100).
This is a substantial difference. After adjusting for cost of living, $100K in Alaska has purchasing power of $62,303 compared to $77,786 in Montana. Interestingly, Montana wins on purchasing power even though Alaska has higher raw take-home pay. The cost of living difference more than offsets the tax advantage.
For a single earner at $100K filing jointly, take-home becomes $84,710 in Alaska and $81,038 in Montana \u2014 a difference of $3,673. The gap remains similar regardless of filing status.
On paper, moving from Montana to Alaska would save $3,673/year on a $100K salary, or $18,363 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $3,673/year savings is meaningful but probably not enough to justify a move on its own. However, combined with other factors like career growth, lifestyle preferences, or family proximity, it could tip the scale.