Side-by-side tax comparison between Montana (5.65% top rate, graduated) and Texas (no income tax). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Texas 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 Texas 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.
Texas wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Montana | Texas | Difference | Winner |
|---|---|---|---|---|
| $40K | $32,851 | $34,320 | +$1,469 | Texas |
| $50K | $40,519 | $42,355 | +$1,836 | Texas |
| $60K | $48,187 | $50,390 | +$2,204 | Texas |
| $75K | $58,783 | $61,538 | +$2,754 | Texas |
| $100K | $75,453 | $79,125 | +$3,673 | Texas |
| $120K | $88,788 | $93,195 | +$4,407 | Texas |
| $150K | $108,242 | $113,751 | +$5,509 | Texas |
| $200K | $141,542 | $148,887 | +$7,345 | Texas |
| $250K | $174,083 | $183,264 | +$9,181 | Texas |
| $300K | $204,311 | $215,329 | +$11,018 | Texas |
Take-home pay only tells part of the story. Montana has a cost of living index of 97 while Texas is at 93 (national average = 100).
With similar costs of living (97 vs 93), the tax difference is the primary factor. What you see in raw take-home pay is essentially what you get in purchasing power: $77,786 in Montana vs $85,081 in Texas.
For a single earner at $100K filing jointly, take-home becomes $81,038 in Montana and $84,710 in Texas \u2014 a difference of $3,673. The gap remains similar regardless of filing status.
On paper, moving from Montana to Texas 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.