What is Montana’s franchise tax?

Montana takes a different approach: no franchise tax at all. Instead, the state uses a corporate license tax that works as a straightforward corporate income tax. 

If you run a C corporation or an LLC that chose corporate tax status, you'll pay Montana's license tax on actual profit earned in the state, not on assets or stock value. The rate? A flat 6.75% of net income, with a $50 minimum. 

Additional state taxes

Beyond the corporate license tax, Montana imposes several other state-level taxes that affect businesses, including: 

  • Individual income tax withholding
  • Unemployment insurance 
  • Severance taxes, which apply to resource extraction companies

Penalties and compliance

Missing or delaying your Montana corporate license tax return can become expensive quickly and may result in the shutdown of business operations. Montana layers penalties, interest, and administrative sanctions that escalate the longer you wait. This includes: 

  • Monthly penalty
  • Minimum penalty
  • Daily interest charges
  • Administrative sanctions
  • Business disruption

Automate your Montana compliance obligations

Montana's corporate license tax calculations require detailed financial analysis. And while Discern doesn’t handle these complex tax filings, we can automate your Secretary of State compliance across all states where you operate.

Our platform manages registered agent services in all 51 jurisdictions and automates routine state filings, preventing the costly penalties and administrative chaos that come from missed deadlines. Ready to simplify your Montana compliance? Book a demo with Discern today.

Author
The Discern Team
Published Date
July 7, 2025
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