Crypto Tax & Regulation in Montana: 2026 State Guide

How Montana Taxes Crypto

Crypto activity in the United States is taxed at both federal and state level. The federal IRS treats cryptocurrency as property — every disposal triggers capital gains tax at federal short-term (10%–37%) or long-term (0%, 15%, 20%) rates, plus the 3.8% Net Investment Income Tax for high earners.

On top of that, Montana applies its own state income tax. Up to 5.9% applies to ordinary income, which most states (including Montana) extend to crypto capital gains.

Montana-specific details: Montana does NOT require money transmission licensing for crypto firms — unusual among US states.

Money Transmission & Crypto Licensing in Montana

Montana takes a more relaxed approach to money transmission for crypto activity. Exchange operators face less direct licensing friction at the state level, though federal FinCEN MSB registration still applies.

Combined Federal + Montana Tax

Your total tax on crypto gains in Montana combines federal and state. As an illustration:

• Short-term gains (held ≤12 months): federal ordinary income rate (up to 37%) + Up to 5.9% state tax.
• Long-term gains (held >12 months): federal preferential rate (0%, 15%, or 20%) + Up to 5.9% state tax (most states tax long-term gains at the same rate as ordinary income — there is no federal-style discount at state level for most states).
• 3.8% NIIT if your modified AGI exceeds $200,000 single / $250,000 joint.

For full federal reporting (Form 8949, Schedule D, Form 1099-DA), see our US federal crypto tax guide.