Montana pay stubs: state taxes and withholding
Montana paycheck withholding for 2026: two income tax rates, 4.7% and 5.65%, no local income tax, plus federal income tax and FICA.
Last reviewed
Rates on this page are for the 2026 tax year and are reviewed every January.
State income tax
Montana has one of the simplest graduated systems in the country: just two rates. For 2026 they are 4.7% on taxable income up to a threshold and 5.65% on income above it. The threshold depends on filing status. A 2025 law widened the lower bracket and cut the top rate from 5.9%, so 2026 withholding is a little lighter than 2025 for many workers.
Employees complete Form MW-4, Montana's withholding and exemption certificate. The Department of Revenue updated its withholding tables and employer guide for 2026 to reflect the new rates.
Other state payroll deductions
Montana does not run a state disability insurance program or a paid family leave payroll program, and state unemployment insurance is paid by employers. For most employees, the only Montana line on the stub is state income tax.
Local taxes
Montana cities and counties do not tax wages. There is no local withholding to track.
Federal withholding still applies
- Federal income tax, based on the employee's Form W-4
- Social Security, 6.2% of wages up to the annual Social Security wage base
- Medicare, 1.45% of all wages, plus an additional 0.9% on wages above $200,000
Creating a Montana pay stub with PayStubNest
Open a new pay stub, enter a salary or hourly pay with hours, and choose Montana. PayStubNest applies federal withholding and Montana's state tax and adds each pay period to the year-to-date totals, so a stub in December reflects the whole year. The exact figures on each stub depend on the pay amount, pay frequency, W-4 choices, deductions and year-to-date totals, and PayStubNest calculates all of it automatically. You can build and preview for free. You only pay for the stubs you download.
Seasonal and part-year work
Montana has plenty of seasonal work in agriculture, tourism and construction. When someone works only part of the year, the year-to-date totals on their stubs are the easiest way for both of you to see where they stand. Keep every stub for the season, not just the last one.
Record-keeping tip
When the state changes its rates, ask employees whether they want to update their MW-4. Some people adjust extra withholding they set up under the old rates. For forms and tables, visit the Montana Department of Revenue.