Montana Take-Home Pay Calculator
5.9% top rateEstimate your net paycheck after federal taxes, FICA, and Montana state income tax.
Last updated: April 2026
Montana Income Tax
Montana simplified to two brackets in 2024: 4.7% on the first $20,500 and 5.9% on income above that.
Montana State Income Tax: What You Need to Know
Montana simplified to two brackets in 2024: 4.7% on the first $20,500 and 5.9% on income above that.
Montana overhauled its income tax in 2021 (SB 159), replacing seven brackets with two starting in tax year 2024: 4.7% on the first $20,500 and 5.9% on income above that. This simplified Montana's previously complex graduated system that topped at 6.9%. Montana has no city or local income tax on wages. Montana is notable for having no sales tax — the state funds itself through income taxes, property taxes, and natural resource revenues. There is no Montana sales tax on groceries, clothing, or other purchases.
On top of state taxes, all workers also pay federal income tax based on the 2026 progressive brackets, plus FICA taxes: Social Security (6.2% up to $176,100) and Medicare (1.45% on all wages).
Our calculator applies Montana's 5.9% top rate to your gross income as a simplified estimate. Actual state taxes may vary based on deductions, exemptions, and local taxes not captured in this estimate.
Montana Income Tax Brackets (2026, Single Filers)
| Income Range | Tax Rate |
|---|---|
| $0 – $20,500 | 4.70% |
| $20,500 – and above | 5.90% |
Montana Take-Home Pay Examples (2026, Single Filer)
Estimates based on standard deduction, no pre-tax deductions. Last updated: April 2026.
| Salary | Federal Tax | State Tax | FICA | Take-Home |
|---|---|---|---|---|
| $40,000 | $3,167 | $2,114 | $3,060 | $31,659 |
| $60,000 | $6,617 | $3,294 | $4,590 | $45,499 |
| $80,000 | $10,817 | $4,474 | $6,120 | $58,589 |
| $100,000 | $15,617 | $5,654 | $7,650 | $71,079 |
Frequently Asked Questions: Montana Taxes
What are Montana's income tax brackets for 2026?
Montana has two income tax brackets starting in tax year 2024: 4.7% on the first $20,500 of taxable income and 5.9% on all income above $20,500. This simplified structure replaced Montana's prior seven-bracket system (which topped at 6.9%) under SB 159, passed in 2021.
Does Montana have a sales tax?
No. Montana has no state sales tax — one of only five states without one. This is a significant benefit for consumers, as there is no tax on groceries, clothing, vehicles, or other purchases. Montana funds its government primarily through income taxes, property taxes, and natural resource revenues. The absence of a sales tax is often cited as a major quality-of-life advantage for Montana residents.
Does Montana have a local income tax?
No. Montana cities and counties do not impose a local income tax on wages. Workers in Billings, Missoula, Great Falls, Bozeman, and all other Montana cities pay only state and federal income taxes on their wages.
Does Montana tax Social Security benefits?
Yes. Montana taxes Social Security benefits to the extent they are federally taxable. Montana provides a limited deduction for Social Security income, but higher-income residents generally owe Montana tax on their Social Security benefits. This makes Montana less favorable for retirees than states that fully exempt Social Security.
How does Montana's tax burden compare to neighboring states?
Montana is surrounded by states with varying tax structures: Wyoming and South Dakota have no income tax at all; Idaho has a flat 5.8%; North Dakota has a low flat rate. Montana's 5.9% top rate is higher than Wyoming and South Dakota, comparable to Idaho, and lower than the old Montana top rate. The lack of a sales tax meaningfully offsets Montana's income tax for many residents.
What is Montana's minimum wage in 2026?
Montana's minimum wage is $10.55/hour in 2026, indexed annually to inflation under a voter-approved formula. Montana's minimum is above the federal floor but below many coastal states. Montana law allows a lower training wage for new employees under 18 for the first 90 days of employment.