# 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.

Source: https://www.paystubnest.com/states/montana
State: Montana (MT)
Published: 2026-09-25
Last reviewed: 2026-10-12
Publisher: PayStubNest.com

## Short answer

Montana withholds state income tax using two rates for 2026: 4.7% on taxable income up to a threshold that depends on filing status, and 5.65% on income above it. There are no local income taxes and no state disability or family leave deduction. Federal income tax, Social Security and Medicare are withheld as well.

## 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](https://www.paystubnest.com/app/new), 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](https://revenue.mt.gov).