How Much Do Montana’s Wealthiest Really Pay In Taxes?

What do the wealthiest Americans actually contribute in taxes? It is a question that comes up often in political debates and all over the media. The numbers behind it are interesting and, in some cases, surprising.

Across the United States, the top 1% of earners account for about 19.5% of all income. Despite making up such a small slice of the pie, they pay roughly 37% of all federal income taxes. That means a large portion of the money funding things like roads, healthcare programs, public services, and social safety nets comes from this group.

A recent breakdown using IRS data looked at where the top 1 % contributes the most and least in income taxes by state. Not surprisingly, states with smaller populations but high earners stood out. Our friendly neighbor to the south, Wyoming, ranked first in the country. They have nearly 55% of all income tax revenue coming from just over 2,600 top-earning households. Florida and Nevada followed close behind, both seeing more than half of their income tax revenue come from the top 1%.

Montana landed 7th overall, which puts it higher than many people might expect. In Montana, the top 1% pays about 42.9% of all income taxes collected in the state. There are roughly 5,100 households in this group, with an average adjusted gross income of just over 2.1 million. Collectively, they paid about 2.69 billion dollars in income taxes.

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These numbers show how much state budgets can depend on a relatively small group of people. They also help explain why conversations about tax policy can feel so.... heated.