Montana Estate Tax Calculator

Pri Geens

Pri Geens

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Montana Estate Tax Calculator

Estimate the federal estate tax on a Montana decedent’s estate and confirm that Montana itself charges nothing. Montana’s estate tax was only a pick-up tax tied to the federal state death tax credit and was repealed for deaths on or after January 1, 2005, so for 2024-2026 deaths Montana tax is $0. Montana has no inheritance tax and no gift tax. Distinctive rules modeled: the UPC-style graduated spousal elective share (3% to 50% by years of marriage) and the small-estate affidavit. Three modes: estimate the tax, test a larger estate, or solve for the years of gifting needed to reach zero. Fields marked * are required; Calculate names any left empty.

Montana rules this calculator enforces: NO state estate tax for deaths on or after January 1, 2005 (MCA Title 72 Ch. 16 pick-up tax tied to the federal state death tax credit, zero after 2004, repealed; VERIFY exact date), so no Montana estate tax return is filed; no inheritance tax; no gift tax; common-law (equitable distribution) state, not community property; spousal elective share graduated over the augmented estate by years of marriage (MCA 72-2-221 et seq., UPC-style: 3% under 1 year up to 50% at 15 or more years; VERIFY), approximated here on the net estate; small-estate affidavit where personal property is $50,000 or less (MCA 72-3-1105; VERIFY current figure); probate venue in the District Court of the county of domicile (56 counties).
Federal: unified estate and gift schedule topping at 40%; basic exclusion $13,610,000 (2024), $13,990,000 (2025), $15,000,000 (2026); federal portability (DSUE) allowed; unlimited marital and charitable deductions; GST 40%.
Sets the federal exclusion and annual gift exclusion. Montana tax is $0 for all three years.
District Court probate venue; the estate tax itself is federal only.Required. Please choose a Montana county.
Select a county to see the District Court venue, the small-estate affidavit threshold, and the federal exclusion for the selected year.

Assets at date of death

Home, ranch, land, rental buildings at fair market value.Enter 0 or a positive amount.
Checking, savings, CDs, stocks, bonds, mutual funds.Enter 0 or a positive amount.
IRAs, 401(k)s, 403(b)s, pensions, annuity contracts.Enter 0 or a positive amount.
Death benefit includible when the decedent held any incident of ownership.Enter 0 or a positive amount.
Closely held business, ranch equipment, vehicles, receivables, trusts includible in the estate.Enter 0 or a positive amount.
Montana is a common-law (equitable distribution) state, not community property, so no community-property halving or double step-up applies.

Debts and administration costs

Deductible obligations of the decedent.Enter 0 or a positive amount.
Deductible when paid by the estate.Enter 0 or a positive amount.
Deductible administration expense.Enter a percentage between 0 and 25.
Filing fees, publication, appraisal costs.Enter 0 or a positive amount.
Deductible if not compensated by insurance.Enter 0 or a positive amount.

Bequests and marital status

Drives the UPC-style graduated elective share (MCA 72-2-221 et seq.): 3% under 1 year, plus 3 points per year, 50% at 15 or more (VERIFY).Enter a whole number between 0 and 80.
Unlimited marital deduction for a citizen spouse or a QDOT.Enter 0 or a positive amount.
Unlimited deduction for qualifying charities.Enter 0 or a positive amount.

Prior gifts, portability and GST

Post-1976 taxable gifts; they consume the federal exclusion. Montana has no gift tax and no add-back.Enter 0 or a positive amount.
Federal portability; requires a timely federal Form 706 election.Enter 0 or a positive amount.
Federal GST at a flat 40% on Form 706 Schedule R.Enter 0 or a positive amount.
Equals the federal basic exclusion for the year of death.Enter 0 or a positive amount.

Gifting plan

Required in gifting mode. Annual-exclusion gifts are not taxable gifts.Required in gifting mode. Enter 1 or more donees.
Amounts above the annual exclusion become taxable gifts.Enter 0 or a positive amount.
Gifts carry over basis and lose the step-up at death.Enter 0 or a positive amount.
If the tax cannot be eliminated inside this horizon, the calculator says so.Enter a whole number between 1 and 100.

How it works

  • Montana charges nothing for recent deaths. The Montana estate tax (MCA Title 72 Ch. 16) was only a pick-up tax equal to the federal state death tax credit; that credit was eliminated for deaths after 2004 and Montana repealed its estate tax for deaths on or after January 1, 2005 (VERIFY), so no Montana estate tax return is filed. There is no Montana inheritance tax and no Montana gift tax.
  • Only federal transfer taxes apply. The federal estate tax applies above the basic exclusion using the unified 18% to 40% schedule, and the federal GST applies at 40% to direct skips above the allocated GST exemption.
  • No community property. Montana is a common-law state, so no halving of community assets and no double basis step-up.
  • Portability is federal only. A surviving spouse may inherit the unused federal exclusion (DSUE) with a timely Form 706 election; there is no Montana state exclusion to port.
  • Elective share is graduated. Under MCA 72-2-221 et seq. (UPC-style) the surviving spouse’s elective share rises from 3% of the augmented estate for a marriage under one year, by 3 percentage points per year, to 45% at 14 years and 50% at 15 or more years (VERIFY). This calculator approximates the augmented estate with the net estate.
  • Small estates skip full probate. The affidavit for collection of personal property under MCA 72-3-1105 is available where personal property is $50,000 or less; verify the current figure.
  • Binding factor names what controls the result: the federal basic exclusion, the federal unified schedule above it, or the GST.
  • Gifting mode uses the guarded bisection solver (60 expansions, 90 iterations, rounded up) to find the years of annual-exclusion gifting that bring the taxable estate to the exclusion or below.
  • Gifting is not free. Carryover basis loses the step-up; the deferred gain is netted against the tax saved.

Sources

  • MCA Title 72 Ch. 16 (Montana estate tax, a pick-up tax tied to the federal state death tax credit) and its repeal for deaths on or after January 1, 2005 (VERIFY exact date); Montana Department of Revenue guidance confirming no state estate, inheritance or gift tax for those deaths.
  • MCA 72-2-221 et seq. (UPC-style graduated spousal elective share over the augmented estate; VERIFY exact table); MCA 72-3-1105 (small-estate affidavit for personal property, $50,000 limit; VERIFY current figure); Montana probate venue in the District Court of the county of domicile (56 counties).
  • IRC chapter 11 unified schedule and exclusion ($13,610,000 / $13,990,000 / $15,000,000 for 2024 / 2025 / 2026); IRC 2010 portability; IRC 2042 life insurance inclusion; IRC 2055 charitable deduction; IRC chapter 13 GST at 40%; IRC 1014 step-up and 1015 carryover basis.
  • IRS Form 706 and Form 4768 instructions (9-month deadline, 6-month filing extension).

Test cases

TC1 – Below federal exclusion. Yellowstone (Billings), 2025, single. Real 4,000,000; financial 3,000,000; retirement 2,000,000; debts 400,000; funeral 15,000; atty 2%; court 400.
Gross 9,000,000; admin 172,400; deductions 587,400; net estate 8,412,600; TE 8,412,600 below 13,990,000. Federal $0, Montana $0, TOTAL $0. Headroom 5,577,400; ceiling 14,577,400. Affidavit NOT available (personal property 5,000,000).
TC2 – Above federal exclusion. Missoula, 2025, single. Real 8,000,000; financial 6,000,000; retirement 4,000,000; business 2,000,000; debts 500,000; funeral 20,000; atty 2%; court 400.
Gross 20,000,000; admin 390,400; deductions 910,400; net estate 19,089,600; TE 19,089,600 above 13,990,000. Federal tentative 7,581,640 less credit 5,541,800 = FEDERAL 2,039,840. Montana $0. TOTAL 2,039,840. Effective 10.20%.
TC3 – Marital + DSUE + elective share. Cascade (Great Falls), 2025, married 20 years, citizen spouse, bequest 8,000,000, DSUE 2,000,000. Real 15,000,000; financial 7,000,000; life 4,000,000; debts 400,000; funeral 25,000; atty 2%; court 400.
Gross 26,000,000; admin 512,400; deductions 937,400; net estate 25,062,600; less marital 8,000,000 = TE 17,062,600; federal exclusion 15,990,000. Federal tentative 6,770,840 less credit 6,341,800 = FEDERAL 429,040. Montana $0. TOTAL 429,040. Elective share 50% = 12,531,300. Headroom 0; ceiling 26,000,000.
TC4 – Gifting solver, 2026, maxYears 60. Gallatin (Bozeman), single. Real 9,000,000; financial 6,000,000; retirement 3,000,000; business 2,000,000; debts 300,000; funeral 15,000; atty 2%; court 400; 4 donees at 19,000.
Gross 20,000,000; admin 394,400; deductions 709,400; net estate 19,290,600; TE 19,290,600 above 15,000,000. FEDERAL 1,716,240. Solver: 76,000 per year; 57 YEARS removes 4,332,000 leaving TE 14,958,600 at or below the exclusion, tax $0. Saved 1,716,240.
TC5 – Small estate, affidavit eligible. Lewis and Clark (Helena), 2025, married 5 years, citizen spouse. Financial 30,000; retirement 15,000; debts 3,000; funeral 4,000; atty 2%; court 300.
Gross 45,000; admin 1,140; deductions 8,140; net estate 36,860; TE 36,860. Federal $0, Montana $0, TOTAL $0. Affidavit available (personal property 45,000 at or below 50,000). Elective share 18% = 6,635.

Estimates only. Not legal, tax or financial advice. The Montana elective share table and small-estate threshold are flagged for verification against MCA 72-2-221 and 72-3-1105. Verify all figures with the Montana Department of Revenue and federal rules before relying on them.

What Is a Montana Estate Tax Calculator?

The Montana Estate Tax Calculator models the transfer-tax consequences of an estate using the assets, deductions, bequests, prior taxable gifts, portability, and GST information you enter. It supports deaths in 2024, 2025, and 2026 and applies the federal exclusion programmed for the selected year.

The calculator determines estimated federal estate tax, GST tax, and total transfer tax while setting Montana estate and inheritance taxes to $0. It builds a taxable estate from entered assets and deductions, applies marital and charitable deductions when allowed, adds earlier taxable gifts to the federal base, and compares that base with the applicable federal exclusion.

Three modes are available. You can calculate tax on the current estate, test whether a larger estate profile would produce tax and view remaining exclusion headroom, or solve for the number of years of modeled annual-exclusion gifting needed to reach zero transfer tax within a selected time horizon.

The results are estimates. The calculator specifically flags its Montana elective-share table and $50,000 small-estate affidavit threshold for verification, so its output should not be treated as legal, tax, or financial advice.

How the Montana Estate Tax Calculation Works

The calculation begins by adding five asset categories: real property, bank and investment accounts, retirement accounts and annuities, life insurance owned by the decedent, and business interests or other property.

The calculator next estimates administration costs. The entered attorney and personal representative percentage is applied to gross estate minus debts, with that base floored at zero. District Court and other entered costs are then added.

Debts, funeral expenses, administration costs, and casualty or theft losses form total deductions. The remaining amount, never below zero, is the calculator’s net estate.

Net Estate=max⁡(Gross Estate−Total Deductions,0)\text{Net Estate}=\max(\text{Gross Estate}-\text{Total Deductions},0)

A marital deduction is allowed when the decedent is marked married and the surviving spouse is a U.S. citizen or the non-citizen spouse’s bequest passes to a QDOT. It cannot exceed the net estate. The charitable deduction is then limited to the remaining amount.

Taxable Estate=max⁡(Net Estate−Marital Deduction−Charitable Deduction−Gift Reduction,0)\text{Taxable Estate}=\max(\text{Net Estate}-\text{Marital Deduction}-\text{Charitable Deduction}-\text{Gift Reduction},0)

Earlier taxable gifts are added to the taxable estate to create the federal base. DSUE, or deceased spousal unused exclusion, is added to the basic exclusion for the selected year.

Federal Base=Taxable Estate+Earlier Taxable Gifts\text{Federal Base}=\text{Taxable Estate}+\text{Earlier Taxable Gifts}
Applicable Federal Exclusion=Basic Exclusion+DSUE\text{Applicable Federal Exclusion}=\text{Basic Exclusion}+\text{DSUE}

The programmed basic exclusion is $13,610,000 for 2024, $13,990,000 for 2025, and $15,000,000 for 2026. If the federal base exceeds the applicable exclusion, the calculator applies its progressive federal schedule, ranging from 18% to 40%, to both values.

Federal Estate Tax=max⁡(T(Federal Base)−T(Applicable Exclusion),0)\text{Federal Estate Tax}=\max\left(T(\text{Federal Base})-T(\text{Applicable Exclusion}),0\right)

Here, T represents the calculator’s progressive federal tax schedule. Montana estate tax and Montana inheritance tax are both set to zero. GST tax is calculated separately at 40% of direct skips remaining after the entered GST exemption.

GST Tax=0.40×max⁡(Direct Skips−GST Exemption,0)\text{GST Tax}=0.40\times\max(\text{Direct Skips}-\text{GST Exemption},0)
Total Transfer Tax=Federal Estate Tax+GST Tax\text{Total Transfer Tax}=\text{Federal Estate Tax}+\text{GST Tax}

Worked Example

Consider the calculator’s 2025 example with $8,000,000 of real property, $6,000,000 of financial assets, $4,000,000 of retirement assets, and $2,000,000 of business interests. Gross estate is $20,000,000. The example also uses $500,000 of debts, $20,000 of funeral expenses, a 2% administration fee, and $400 of court costs.

The fee calculation is 2% of $19,500,000, plus $400, producing $390,400 of administration costs. Total deductions are $910,400, so the net and taxable estate are $19,089,600. With no earlier taxable gifts or DSUE, the federal base is also $19,089,600.

The calculator applies its federal schedule to $19,089,600, producing tentative tax of $7,581,640. It applies the same schedule to the 2025 exclusion of $13,990,000, producing a $5,541,800 credit. The difference is $2,039,840. Montana tax is $0, so total transfer tax is $2,039,840.

How to Use the Montana Estate Tax Calculator

  1. Select estate-tax, larger-estate, or gifting mode.
  2. Choose the year of death: 2024, 2025, or 2026.
  3. Select the Montana county of domicile. This controls the probate venue information shown by the calculator.
  4. Enter real property, financial accounts, retirement assets, owned life insurance, and business or other property.
  5. Enter debts, funeral expenses, the attorney and personal representative fee percentage, court costs, and casualty or theft losses.
  6. If applicable, mark the estate as having a surviving spouse, enter years of marriage, set the spouse citizenship or QDOT options, and enter spousal and charitable bequests.
  7. Enter earlier taxable gifts, DSUE, direct skips, and allocated GST exemption when they apply.
  8. For gifting mode, enter the number of donees, gift per donee, unrealized gain, heirs’ selected capital-gains rate, NIIT option, and maximum years to test.
  9. Check the required acknowledgment and select “Calculate the estate tax” to display the results.

The primary result is total transfer tax due, or the gifting result when that mode is selected. Detailed results show the gross and taxable estate, federal exclusion, DSUE, federal tax calculation, GST tax, effective rate, remaining exclusion headroom, filing information, elective-share estimate, small-estate status, and other modeled figures.

Understanding the Calculator’s Results

Federal Exclusion Headroom

Remaining exclusion headroom is the applicable federal exclusion minus the federal base, floored at zero. The calculator also displays a tax-free ceiling equal to the current gross estate plus that headroom. This is a modeled result based on the entered estate profile and deductions.

Headroom=max⁡(Applicable Federal Exclusion−Federal Base,0)\text{Headroom}=\max(\text{Applicable Federal Exclusion}-\text{Federal Base},0)

If the federal base is above the applicable exclusion, the calculator marks the marginal federal rate on the next dollar as 40%. Its effective transfer-tax rate divides total transfer tax by gross estate, using 0% when gross estate is zero.

Effective Rate=Total Transfer TaxGross Estate×100%\text{Effective Rate}=\frac{\text{Total Transfer Tax}}{\text{Gross Estate}}\times100\%

Montana Elective-Share Estimate

For a married decedent, the calculator estimates an elective share from years of marriage and applies the resulting percentage to the net estate. Its programmed percentage starts at 3% for zero years and increases by three percentage points per entered year. The code caps the intermediate schedule at 45%, then uses 50% at 15 or more years.

Elective Share=Net Estate×Programmed Elective-Share Percentage\text{Elective Share}=\text{Net Estate}\times\text{Programmed Elective-Share Percentage}

This is only the calculator’s approximation of an augmented-estate concept. The calculator explicitly flags its elective-share table for verification.

Small-Estate Affidavit Test

The calculator adds financial accounts, retirement accounts, life insurance, and business or other property to determine personal property for its small-estate test. Real property is not included in this particular total. It marks the affidavit as available when that personal-property amount is $50,000 or less. The code flags the $50,000 figure for verification.

Gifting Solver

In gifting mode, the calculator limits the amount counted per donee to the programmed annual exclusion. It uses $18,000 for 2024 and $19,000 for 2025 and 2026, even if a larger gift-per-donee amount is entered.

Gift Reduction=min⁡(Gift per Donee,Annual Exclusion)×Donees×Years\text{Gift Reduction}=\min(\text{Gift per Donee},\text{Annual Exclusion})\times\text{Donees}\times\text{Years}

The solver searches for the smallest whole number of years that reduces total modeled transfer tax to zero within the entered horizon. The maximum-years field accepts whole numbers from 1 through 100. For example, the calculator’s 2026 test case uses four donees at $19,000 each, or $76,000 per year. It requires 57 years to model a $4,332,000 reduction and bring a $19,290,600 taxable estate down to $14,958,600.

The gifting section also includes unrealized gain in gifted assets, a selected long-term capital-gains rate of 0%, 15%, or 20%, and an optional 3.8% NIIT assumption. These inputs support the calculator’s comparison of the modeled transfer-tax savings with its estimated carryover-basis cost.

Input Limits and Formatting

Most dollar inputs accept values from $0 through $100,000,000. The attorney and personal representative fee accepts 0% through 25%. Years of marriage accepts whole numbers from 0 through 80, while the number of donees accepts 0 through 200 and must be at least one in gifting mode. Negative values are not accepted by the modeled numeric fields.

Displayed currency amounts are rounded to the nearest whole dollar and formatted as U.S. currency. Percentage results are formatted separately. Required fields include the calculation mode, death year, county, heirs’ long-term capital-gains rate, and acknowledgment.

Estate Tax Calculators for All 50 U.S. States

Frequently Asked Questions

Does this calculator charge Montana estate tax?

No. The calculator sets Montana estate tax to $0 for its supported 2024, 2025, and 2026 death years. Its code describes Montana’s former tax as a pick-up tax and treats it as repealed for the modeled years. It also sets Montana inheritance tax to $0.

What federal estate tax exclusions does the calculator use?

The calculator uses a $13,610,000 basic exclusion for 2024, $13,990,000 for 2025, and $15,000,000 for 2026. It adds any DSUE entered by the user to that basic amount before comparing the applicable exclusion with the federal tax base.

How does a spousal bequest reduce the taxable estate?

The calculator allows the marital deduction when the decedent is marked married and the surviving spouse is a U.S. citizen or the bequest to a non-citizen spouse passes to a QDOT. The allowed marital deduction cannot exceed the calculated net estate.

How are earlier taxable gifts handled?

Earlier taxable gifts are added to the taxable estate when the calculator forms its federal base. This means a prior-gifts entry can reduce available exclusion headroom and affect the modeled federal estate tax even though Montana gift tax itself is set to zero.

How does the GST calculation work?

The calculator subtracts the allocated GST exemption from entered direct skips and floors the result at zero. It then applies a 40% GST rate to the remaining taxable direct skips. GST is added to federal estate tax when determining total transfer tax.

How does the gifting solver determine the number of years?

The solver repeatedly recalculates the estate with increasing years of annual-exclusion gifts. It searches for the smallest whole number of years that produces total transfer tax of $0. If tax remains above zero at the maximum number of years entered, the calculator reports that the target is not reachable within that horizon.

Does the county change the estate tax calculation?

No. The selected county supplies the District Court probate venue information shown by the calculator. The estate-tax computation itself does not use a county-specific tax rate. The calculator includes named choices for several Montana counties plus an “Other Montana county” option.