Estimate your take-home pay in Montana. The state levies a graduated income tax that tops out at 5.9% (4.7% to 5.9% across 2 brackets). This means a portion of every paycheck goes toward state income tax in addition to federal withholding, Social Security, and Medicare.
Disclaimer: All figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Tax rates, brackets, and withholding rules change and vary by locality and personal circumstances. Verify current rates with the Montana Department of Revenue or the IRS, and consult a qualified tax professional before making financial decisions.
Montana Tax Snapshot
- State Income Tax
- 5.9% top rate
- Sales Tax (state + local avg)
- None
- Avg Property Tax Rate
- 0.74%
- Median Home Value
- $393,300
- State Minimum Wage
- $10.55/hr
Did You Know?
Montana has no state or local sales tax.
How Montana's Graduated Brackets Affect Your Paycheck
When you earn a paycheck in Montana, your employer withholds federal income tax, Social Security (6.2%), and Medicare (1.45%). On top of that, the state withholds income tax based on 4.7% to 5.9% across 2 brackets. The state minimum wage is $10.55 per hour, which sets the floor for hourly workers. Understanding these deductions helps you budget effectively and plan for the average 0.74% property tax rate on homes valued around $393,300.
Montana does not charge a state or local sales tax, giving residents additional purchasing power beyond their take-home pay.
How Montana's Income Tax Compares Nationally
Montana uses a graduated income tax — 4.7% to 5.9% across 2 brackets — so higher slices of income are taxed at higher rates rather than one flat percentage.
Its 5.9% top rate is the 16th-highest nationally among the 42 states and jurisdictions that tax wages, above the median top rate of 5.54%.
For comparison, nearby states line up like this: Idaho (top rate 5.695%); North Dakota (top rate 1.95%); South Dakota (no income tax); Wyoming (no income tax).