Montana paycheck taxes at a glance
| State income tax | 4.7% to 5.65% (2 brackets) |
|---|---|
| Standard deduction | $16,100 single, $32,200 joint, $24,150 head of household |
| Pre-tax deductions | 401(k), HSA and health premiums lower state tax too |
| Local income tax | None on wages |
| State payroll deductions | None |
| Reciprocity | With ND |
| Figures | Tax year 2026 |
Every paycheck also has federal income tax, Social Security (6.2% up to $184,500) and Medicare (1.45%), worked out with the same 2026 IRS figures as ourmain paycheck calculator.
Montana income tax brackets
| Taxable income | Rate |
|---|---|
| $0 to $47,500 | 4.7% |
| Over $47,500 | 5.65% |
| Taxable income | Rate |
|---|---|
| $0 to $95,000 | 4.7% |
| Over $95,000 | 5.65% |
| Taxable income | Rate |
|---|---|
| $0 to $71,250 | 4.7% |
| Over $71,250 | 5.65% |
Worked examples
A $70,000 salary in Billings, single, paid every two weeks
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $2,692.31 | $70,000 |
| Federal income tax | − $252.69 | − $6,570 |
| Social Security and Medicare | − $205.96 | − $5,355 |
| Montana income tax | − $99.77 | − $2,594 |
| Take-home pay | $2,133.88 | $55,481 |
Single, paid every two weeks (26 paychecks). Montana taxable income is $53,900 and the state tax is $2,594, an effective 3.706% of gross pay. After the $16,100 federal standard deduction, only the slice of taxable income above $47,500 is taxed at 5.65%; everything below it is taxed at 4.7%.
A $150,000 household in Missoula, married filing jointly with two children
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $5,769.23 | $150,000 |
| 401(k) at 5% | − $288.46 | − $7,500 |
| Federal income tax | − $357.31 | − $9,290 |
| Social Security and Medicare | − $441.35 | − $11,475 |
| Montana income tax | − $204.98 | − $5,329 |
| Take-home pay | $4,477.14 | $116,406 |
Married filing jointly, 2 children, paid every two weeks (26 paychecks). Montana taxable income is $110,300 and the state tax is $5,329, an effective 3.553% of gross pay. Montana gives no dependent exemptions, so the children lower only federal tax. The 5% 401(k) deferral reduces Montana taxable income because it starts from federal figures.
HB 337: lower rates for 2026 and 2027
In 2025 Montana taxed ordinary income at 4.7% up to $21,100 (single) and 5.9% above. House Bill 337 changed that for 2026: the 4.7% rate now covers taxable income up to $47,500 for single filers, $71,250 for heads of household and $95,000 for joint filers, and the top rate is 5.65%. In 2027 the brackets widen to $65,000, $97,500 and $130,000 and the top rate drops to 5.4%. The bill also raised Montana’s refundable earned income credit to 20% of the federal credit from 2026.
Built on federal taxable income
Your Montana return begins with federal adjusted gross income and subtracts the same standard or itemized deduction you take on your federal return, including the new federal deductions for tips, overtime and seniors. Montana then makes its own additions and subtractions, such as a subtraction for taxpayers 65 and older. There are no Montana personal or dependent exemptions. This calculator assumes the standard deduction and no extra federal deductions, which fits most employees.
North Dakota reciprocity, no local tax
Montana has a reciprocal agreement with North Dakota: a resident of either state who works in the other is taxed only at home. North Dakota residents working in Montana claim the exemption on Form MW-4 so no Montana tax is withheld. Other nonresidents pay Montana tax on wages earned here. No Montana city or county taxes wages, and there is no state disability or paid-leave deduction; unemployment insurance is paid by employers.
Montana vs. neighboring states
Take-home pay on a $75,000 salary, single, no pre-tax deductions and no local tax:
| State | Income tax | State tax + programs | Take-home |
|---|---|---|---|
| Montana | 4.7% to 5.65% (2 brackets) | $2,877 | $58,716 |
| Idaho | 5.3% above $4,811 (single) | $2,925 | $58,667 |
| Wyoming | None on wages | $0 | $61,593 |
| South Dakota | None on wages | $0 | $61,593 |
| North Dakota | 1.95% to 2.5% (3 brackets, 0% up to $49,575 single) | $182 | $61,411 |
Where you work and where you live can both matter. See paycheck calculators for every state for the full comparison.