Montana Paycheck Calculator & Income Tax Rates (2026)
Montana has a graduated income tax (4.7-5.65%). On a $100,000 salary a single filer keeps $74,836 after federal tax, FICA and $4,289 in state income tax — an effective rate of 25.2%, ranking #31 of 50 states for take-home pay.
Montana Take-Home Pay Calculator
Pre-loaded with Montana's 2026 brackets and standard deduction. Adjust salary and filing status; switch states to compare.
2026 Montana Income Tax Brackets
Montana applies 2 rates to taxable income — that is, income after the state standard deduction or exemption. Only the slice of income inside each band is taxed at that band's rate.
| Taxable income | Rate |
|---|---|
| $0 – $47,500 | 4.7% |
| Over $47,500 | 5.65% |
| Taxable income | Rate |
|---|---|
| $0 – $95,000 | 4.7% |
| Over $95,000 | 5.65% |
Take-Home Pay at Every Income Level in Montana
Montana's effective state rate climbs with income as more of your salary lands in higher bands. The last column shows the state rate on your next dollar at each level.
| Gross Salary | Federal Tax | FICA | State + Local | Take-Home | Effective Rate | Monthly | Marginal State |
|---|---|---|---|---|---|---|---|
| $40K | $2,620 | $3,060 | $1,123 | $33,197 | 17.0% | $2,766 | 4.7% |
| $50K | $3,820 | $3,825 | $1,593 | $40,762 | 18.5% | $3,397 | 4.7% |
| $60K | $5,020 | $4,590 | $2,063 | $48,327 | 19.5% | $4,027 | 4.7% |
| $75K | $7,725 | $5,738 | $2,877 | $58,661 | 21.8% | $4,888 | 5.7% |
| $100K | $13,225 | $7,650 | $4,289 | $74,836 | 25.2% | $6,236 | 5.7% |
| $120K | $17,625 | $9,180 | $5,419 | $87,776 | 26.9% | $7,315 | 5.7% |
| $150K | $24,774 | $11,475 | $7,114 | $106,637 | 28.9% | $8,886 | 5.7% |
| $200K | $36,774 | $14,339 | $9,939 | $138,948 | 30.5% | $11,579 | 5.7% |
Single vs. married filing jointly in Montana
Montana's joint brackets widen the bands for couples, so the same household income is taxed more lightly. On $100,000 a joint return keeps $81,523 versus $74,836 for a single filer.
| Household income | Single take-home | Married (joint) take-home | Difference |
|---|---|---|---|
| $75K | $58,661 | $62,611 | +$3,950 |
| $150K | $106,637 | $117,322 | +$10,685 |
| $250K | $170,500 | $185,535 | +$15,035 |
How Montana Taxes Income
Montana taxes income at two graduated rates for 2026: 4.7% on the first slice of taxable income and 5.65% above it. That is a long way from the seven-bracket schedule with a 6.75% top rate the state ran through 2023. A 2021 law collapsed the brackets beginning in 2024, and HB 337, passed in 2025, cut the top rate from 5.9% to 5.65% for 2026 with a further step to 5.4% scheduled for 2027, while widening the 4.7% bracket so more middle income is taxed at the lower rate. Montana starts its return from federal taxable income, so the federal standard deduction and itemizing decisions carry through automatically. Net long-term capital gains get their own preferential rates—3% in the lower bracket, 4.1% in the upper—one of the few state-level capital gains preferences in the country. With no sales tax, the individual income tax is by far the largest source of the state's general fund.
Deductions, exemptions and credits
Because Montana's starting point is federal taxable income, there is no separate state standard deduction: the federal standard deduction (or federal itemized deductions, if you itemize on your 1040) flows straight through, and you cannot itemize for Montana unless you itemized federally. On top of that come the $5,500 subtraction for taxpayers 65 and older, a state earned income credit that rises from 10% to 15% of the federal credit for 2026, and a credit for taxes paid to other states.
Local income taxes in Montana
No Montana city, county or school district levies an income or wage tax, and state law gives local governments no authority to create one. Local revenue comes from property taxes and, in a few tourist towns, the resort tax.
Beyond the Paycheck: Sales and Property Tax
Sales tax
Montana has no state sales tax and no general local sales tax—one of five states in that position. The exceptions are narrow: resort communities such as Whitefish, West Yellowstone and Red Lodge levy a 3% resort tax on lodging, restaurant meals and luxury goods (Big Sky's is 4%), and the state charges a combined 8% on hotel and short-term rental stays (a 4% lodging sales tax plus a 4% lodging use tax) and 4% on rental cars.
Property tax
Effective property tax rates run around 0.7% to 0.8% of market value, moderate by national standards, but the 2023 statewide reappraisal pushed median residential values up by roughly 40% and bills followed. HB 231, passed in 2025, responded with a homestead-style structure: primary residences and long-term rentals are taxed at a lower rate than second homes and short-term rentals, phasing in across the 2025 and 2026 tax years. Homeowners and renters 62 and older can claim the elderly homeowner/renter credit, worth up to $1,150.
How Montana Taxes Retirement Income
Montana is one of the handful of states that still taxes Social Security. Since 2024 the return starts from federal taxable income, so the state simply taxes whatever share of benefits—up to 85%—the IRS taxes, with no additional Montana exclusion. The old partial pension exemption was repealed at the same time; pensions, 401(k) and IRA withdrawals are taxed in full at 4.7% or 5.65%. Two offsets soften this: taxpayers 65 and older can subtract $5,500 of income of any kind, and a 2023 law created a partial, time-limited exemption for military retirement pay that comes with residency conditions rather than the blanket exemption most Mountain West neighbors offer.
Who Comes Out Ahead in Montana
High earners do worse than the 5.65% headline suggests because the top bracket begins at a modest level of taxable income, though the 3%/4.1% capital gains rates make Montana unusually kind to investors and business sellers. Married couples get brackets roughly double the single thresholds, so there is no marriage penalty. Retirees lose: Social Security and pensions are taxed, and property bills have climbed. Remote workers pay Montana on everything they earn while living here, with no sales tax to offset it. The self-employed pay the same rates with no local layer, and the missing sales tax means no collection burden for service businesses.
Living on Montana's Median Income ($55,000)
The median household income in Montana is $55,000, which is $44,544 a year ($3,712 a month) after all taxes. That is close to the national median. After adjusting for cost of living, the purchasing power of that take-home is equivalent to $45,922 in an average-cost area.
Where Montana Ranks on a $100,000 Salary
Montana ranks #31 of 50 for raw take-home pay and #31 for cost-adjusted purchasing power at $100,000. The two rankings match because the cost of living is near average. The best state (Alaska) leaves $79,125; the worst (Oregon) leaves $70,932. Montana is $4,289 behind the leader.