How Montana's Income Tax Works in 2026
Montana runs one of the simplest income tax systems in the country, with only two brackets. For 2026, the first $47,500 of taxable income for a single filer is taxed at 4.7%, and every dollar above that line is taxed at 5.65%. That upper rate is fresh: lawmakers cut it from 5.9% for 2025, partly to stay competitive with no-tax neighbors like Wyoming and South Dakota.
The state starts from your federal adjusted gross income and follows the federal standard deduction, which is $16,100 for single filers and $32,200 for joint filers in 2026. Because of that conformity, a contribution to a 401(k) or HSA lowers your Montana taxable income at the same time it lowers your federal bill.
Using the Calculator
Montana is already selected below, so enter your gross pay and pay frequency to see your net pay update instantly. The tool applies the two Montana brackets first, then federal tax and FICA, and shows both per-paycheck and annual figures.
Comparing a Montana offer with one across the border? Run the same salary through our Wyoming paycheck calculator or the North Dakota paycheck calculator to see the per-paycheck cost of Montana's income tax in plain dollars.
Where Your Montana Paycheck Goes
Three layers come out of gross pay. Federal income tax follows the 2026 federal brackets, FICA takes a combined 7.65% for Social Security and Medicare, and Montana takes its two-bracket share. That is the whole list. Montana does not run a state disability insurance program or a paid family leave payroll tax, so you will not see either line on your stub.
One quirk worth knowing: Montana has no statewide sales tax. The state funds itself more heavily through income and property taxes instead, which means a Montana paycheck can look smaller than a no-income-tax state's while your overall cost of living tells a different story.
Montana Payroll Details to Know
Minimum wage and overtime
Montana's minimum wage is $10.85 per hour in 2026, adjusted each year for inflation. Businesses with gross annual sales of $110,000 or less may use a $4.00 training-style rate, but almost every employer pays the full rate. Overtime follows the federal Fair Labor Standards Act: time and a half after 40 hours in a week.
Payday rules
Montana law requires wages to be paid within 10 business days after the pay period closes. Biweekly and semimonthly schedules are the norm in Billings, Missoula, and Bozeman. Final pay after leaving a job is due on the next regular payday or within 15 days, whichever comes first.
Worked Example: $75,000 in Billings
Take a single filer in Billings earning $75,000, paid biweekly, with no pre-tax deductions. After the $16,100 standard deduction, Montana taxable income is $58,900. The first $47,500 is taxed at 4.7% ($2,232.50) and the remaining $11,400 at 5.65% ($644.10), giving a state bill of about $2,877.
| Item | Annual Amount |
| Gross Pay | $75,000.00 |
| Federal Income Tax | ~$7,670.00 |
| Social Security (6.2%) | $4,650.00 |
| Medicare (1.45%) | $1,087.50 |
| Montana State Income Tax | ~$2,876.60 |
| Net Annual Pay | ~$58,715.90 |
That leaves about $58,716 a year, or roughly $2,258.30 every two weeks against $2,884.62 in gross pay. The all-in effective rate lands near 21.7%, with the state portion contributing just under four points. Enter your own salary above to get your exact figure.
Paycheck Mistakes Montana Workers Make
- Applying the 5.65% rate to the whole salary. Only income above $47,500 sees the higher rate.
- Forgetting that pre-tax 401(k) contributions shrink Montana taxable income too, since the state starts from federal AGI.
- Comparing a Montana offer to a Wyoming or South Dakota offer on gross salary alone instead of net pay.
- Overlooking the inflation adjustment to the minimum wage when budgeting hourly income for the year.
- Treating a bonus like regular wages. The tax rate is the same, but lump-sum withholding can make one check look unusually small.
Frequently Asked Questions
Does Montana have a flat income tax?
No. Montana uses two brackets: 4.7% on income up to $47,500 and 5.65% above that for single filers in 2026, down from a 5.9% top rate in 2025.
What is Montana's standard deduction for 2026?
Montana follows the federal standard deduction: $16,100 for single filers and $32,200 for joint filers in 2026.
What is the minimum wage in Montana for 2026?
Montana's minimum wage is $10.85 per hour in 2026. Very small businesses may use a $4.00 rate, but nearly all workers earn the full rate.
Does Montana charge a state disability or paid leave tax?
No. Montana has neither a state disability insurance payroll tax nor a paid family leave payroll tax.
How often must Montana employers pay workers?
Wages are due within 10 business days after the pay period ends, and most employers pay biweekly or semimonthly.
Does Montana have a sales tax?
No statewide sales tax. Montana relies more on income and property taxes, which is part of why paycheck comparisons across state lines need full context.
More Montana and Paycheck Tools
Pair this page with the Pay Stub Generator to build a matching stub, or check the Montana sales tax calculator when budgeting purchases. Comparing states? Try the Wyoming, South Dakota, and North Dakota paycheck calculators, or return to the main Paycheck Calculator to start over with a different state.
Sources: IRS Publication 15-T, U.S. Department of Labor, Tax Foundation 2026 state tax brackets, the Montana Department of Revenue. Figures reflect 2026 tax law. This calculator gives an estimate for planning purposes and is not tax advice.