Montana tax summary for 2026
| Tax on wages | Graduated brackets |
|---|---|
| Starting point | Federal taxable income |
| Rates (single) | 4.7% – 5.65% |
| Standard deduction | None |
| Personal exemption | None |
| Federal income tax deduction | Not allowed |
| Employee payroll taxes | None |
| Local income taxes | None |
Montana income tax brackets 2026
Rates apply to Montana taxable income, after the deductions above.
| Rate | Single: income over | Married filing jointly: income over | Head of household: income over | Married filing separately: income over |
|---|---|---|---|---|
| 4.7% | $0 | $0 | $0 | $0 |
| 5.65% | $47,500 | $95,000 | $71,250 | $47,500 |
Worked example: $65,000, single, paid biweekly
Computed by the same engine as the calculator, with no pre-tax deductions.
| Line | Per paycheck | Annual |
|---|---|---|
| Gross pay | $2,500.00 | $65,000 |
| Federal income tax | $216.15 | $5,620 |
| Social Security | $155.00 | $4,030 |
| Medicare | $36.25 | $943 |
| Montana income tax | $88.91 | $2,312 |
| Take-home pay | $2,003.69 | $52,096 |
Effective tax rate 19.9%; tax on the next dollar earned 25.3%. Montana taxable income is $48,900.
Second example: $120,000, married filing jointly, two children
Take-home $101,053 a year ($3,886.67 biweekly). Federal income tax $5,640 after a $4,400 Child Tax Credit, Social Security and Medicare $9,180, Montana income tax $4,127.
How the Montana estimate is calculated
- Start from federal taxable income — so the federal standard deduction and any 2025–2028 federal deductions carry through.
- Montana has no standard deduction in our data.
- Apply the brackets.
- Divide the annual total by your number of paychecks.
What this Montana calculator does not model
- Montana uses federal standard deduction or federal itemized deductions (already embedded in federalTaxable starting point); state income tax deduction included in itemized deductions must be added back
- Montana Earned Income Tax Credit (20% of federal EITC starting 2026, per HB337)
- Long-term capital gains rates (3.0% and 4.1%; not modeled for wages)
- Volunteer firefighter / emergency care provider subtraction ($3,000 per HB129)
- Montana 529 plan contribution subtraction (up to $4,500 single / $9,000 MFJ for 2025, inflation-adjusted for 2026)
- Other Montana credits and subtractions
Data notes
- Montana starts from federal taxable income (not federal AGI) effective for tax years on and after the tax simplification legislation. This means the federal standard deduction or itemized deductions are already factored in. Montana then adds back certain items (state income taxes, QBI deduction, certain interest, etc.) to determine Montana taxable income.
- No separate Montana standard deduction — the federal deduction is embedded in the starting point. If itemizing federally, the state income tax portion must be added back.
- Brackets enacted by HB337 (2025 Montana Legislature): 4.7% up to $47,500 (single/MFS), $71,250 (HOH), $95,000 (MFJ); 5.65% above those thresholds. Top rate reduced from 5.9% (2025). Both brackets and top rate decrease further in 2027.
- Montana does not allow a deduction for federal income taxes paid (no provision in MCA 15-30-2120).
- Long-term capital gains are taxed at 3.0% (within the lower bracket) and 4.1% (above) — not applicable to ordinary wages.
- Re-verified 2026-10-07 against the DOR HB 337 notice and the 2026 tax tables in Publication 1 (2026): 4.7% up to $47,500 single/MFS, $71,250 HOH, $95,000 MFJ; 5.65% above. Montana repealed its federal income tax deduction (tax simplification, effective 2024), so federalTaxDeduction is null.
Sources
- State income tax: 2025 Montana Form 2 Instructions – HB 337 tax tables for tax year 2026 (read 2026-10-07)
- State income tax: HB337: 2026–2027 Montana Individual Income Tax Changes (Montana Department of Revenue) (read 2026-10-07)
- State income tax: 2026 Montana Publication 1 – Guide to Montana Tax Withholding and Estimated Payments (read 2026-10-07)
- State income tax: Montana Tax Simplification Resource Hub – Starting Point: Federal Taxable Income (read 2026-10-07)
Federal figures come from the IRS and SSA; see the methodology page.
Compare nearby and similar states
Neighboring states: Idaho, North Dakota, South Dakota, Wyoming
States with a similar tax setup: Wisconsin, Oklahoma, West Virginia, Missouri, Nebraska, New Jersey
See every state side by side in the salary comparison by state, or browse all state paycheck calculators.