MT HB337

Reduces Montana's top income tax rate from 5.9% to 5.65% for tax year 2026, then to 5.4% for tax years beginning after 2026

Significantly increases income thresholds before the higher tax rate applies: for married joint filers from $41,000 to $95,000 (2026) then $130,000 (2027); for single filers from $20,500 to $47,500 (2026) then $65,000 (2027)

Doubles Montana's earned income tax credit from 10% to 20% of the federal earned income tax credit, effective January 1, 2026

Applies corresponding bracket increases to net long-term capital gains taxation, which is taxed at lower rates of 3.0% and 4.1%

Eliminates annual inflation indexing of tax brackets until tax year 2028, when a modified inflation factor using June 2026 as the base period takes effect