Montana payroll taxes
Every tax withheld from a Montana paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: uid.dli.mt.gov, revenue.mt.gov, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Montana SUTA | — | 1.28% (new) | $47,300 |
| Montana income tax | 4.7%–5.65% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
Montana charges new employers 1.28% on the first $47,300 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0.13% to 6.3%. Schedule 1, UI 0.00%-6.12%. New employer UI rates by industry are 1.00%-2.00% (construction 2.00%). The value used here is 1.10% (Services) + 0.18% AFT.
Administrative Fund Tax (AFT) 0.18% (0.13% for rate classes 1-2), included in the rates
Register and file with the Montana unemployment tax agency.
Income tax withholding
Montana has a graduated income tax with 2 brackets, from 4.7% up to 5.65% on taxable income over $47,500 for single filers.
Frequently asked questions
- What payroll taxes do employers pay in Montana?
- Social Security, Medicare, federal unemployment (FUTA) and Montana unemployment insurance (SUTA).
- What is the Montana SUTA wage base for 2026?
- $47,300 per employee.
- Does Montana require state income tax withholding?
- Yes. Employers withhold Montana income tax based on the employee's state withholding certificate or federal W-4.