What's the tax on a $150,000 long-term capital gain in Montana?

Approximately $33,510 total. Federal LTCG: $22,500. NIIT at 3.8%: $5,700. Montana state tax: $5,310.

Short-term vs long-term?

If the same $150,000 gain were short-term (held under 12 months), it would be taxed as ordinary income at up to 37% federal plus state, coming to approximately $67,034. That's $33,524 more than the long-term number. Holding past the 12-month mark usually saves meaningful money.

Does Montana tax capital gains the same as ordinary income?

Montana gives preferential treatment to long-term capital gains. The specific exclusion or rate depends on current statute; the number above uses a rough 40% exclusion factor.

If the gain is on Qualified Small Business Stock held more than five years, up to the greater of $10M or 10× basis may be excluded from federal tax under IRC §1202. Montana's conformity varies; verify current-year treatment.

How much tax on a $150,000 capital gain in Montana?

Long-term vs short-term

A long-term capital gain (held 12+ months past the basis-setting event) gets preferential federal rates: 0%, 15%, or 20% depending on total taxable income, plus 3.8% NIIT for MAGI above $200k single. Short-term gains are taxed at ordinary rates up to 37% federally, plus state. For this $150,000 gain, the short-term total would run approximately $67,034, compared with $33,510 long-term. The difference is roughly $33,524.

Montana's treatment

Montana gives long-term gains preferential treatment through an exclusion or lower rate. The number above uses a rough 40% exclusion; verify the exact current-year formula before filing.

Cost basis considerations

For RSU shares, basis equals the vest-date closing price. For ISO shares (qualifying disposition), basis equals strike plus any ordinary-income component at exercise. For ESPP shares, basis depends on whether the sale is a qualifying or disqualifying disposition. These basis rules materially affect whether a reported gross sale amount is mostly gain or mostly return of basis.

Frequently asked

What's the tax on a $150,000 long-term capital gain in Montana?: Approximately $33,510 total. Federal LTCG: $22,500. NIIT at 3.8%: $5,700. Montana state tax: $5,310.
Short-term vs long-term?: If the same $150,000 gain were short-term (held under 12 months), it would be taxed as ordinary income at up to 37% federal plus state, coming to approximately $67,034. That's $33,524 more than the long-term number. Holding past the 12-month mark usually saves meaningful money.
Does Montana tax capital gains the same as ordinary income?: Montana gives preferential treatment to long-term capital gains. The specific exclusion or rate depends on current statute; the number above uses a rough 40% exclusion factor.
What about QSBS?: If the gain is on Qualified Small Business Stock held more than five years, up to the greater of $10M or 10× basis may be excluded from federal tax under IRC §1202. Montana's conformity varies; verify current-year treatment.

Educational estimate · 2025 brackets · Single filer · Long-term hold · $250k other ordinary income · Not tax advice

Long-term vs short-term

Montana's treatment

Cost basis considerations

Frequently asked

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