HB904

Montana HB904 revises capital gains taxation by eliminating tax preferences for high-income earners.

Montana HB904 revises capital gains taxation by eliminating tax preferences for high-income earners. It defines "net long-term capital gains" and "nonqualified taxable income," setting specific tax rates based on income brackets and filing status. For joint returns or surviving spouses, income exceeding $1 million is taxed at a higher rate. Other filers face higher rates if income exceeds $500,000. The bill also adjusts tax brackets annually for inflation and applies to income tax years beginning after December 31, 2025.