Montana payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in Montana, each with its effective date and the agency page it comes from.
Unemployment insurance
Checked on October 5, 2026.
Income tax withholding
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Montana Department of Revenue (opens in a new tab) | Montana Department of Revenue, How to Open or Close a Montana Withholding Account (opens in a new tab) | |
| Withholding rates | 4.7% to 5.65% | Montana Department of Revenue, Montana Employer and Information Agent Guide with Withholding Tax Tables, 2026 (PDF) (opens in a new tab) | |
| Supplemental wages | 5% optional flat rate | Montana Department of Revenue, Montana Employer and Information Agent Guide with Withholding Tax Tables, 2026 (PDF) (opens in a new tab) | |
| Reciprocity | North Dakota: Form MW-4, line 5 | Montana Department of Revenue, North Dakota Reciprocity Agreement (opens in a new tab) | |
| Employee's withholding form | Form MW-4 | Montana Department of Revenue, Montana Tax Allowances and Exemptions (Form MW-4) (opens in a new tab) | |
| Local income taxes | No | Montana Code Annotated 2025, §7-1-112(1) (opens in a new tab) |
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $10.85 | Montana DLI, Employment Relations Division, Montana's Minimum Wage (opens in a new tab) | |
| Business not covered by the FLSA with gross annual sales of $110,000 or less | $4.00 | Montana DLI, Employment Relations Division, Montana's Minimum Wage (opens in a new tab) | |
| Tipped employees, cash wage | $10.85 | Montana DLI, Employment Relations Division, Montana's Minimum Wage (opens in a new tab) | |
| Rises with inflation | Yes | Montana DLI, Employment Relations Division, Montana's Minimum Wage (opens in a new tab) | |
| Local rates | No local minimum wages: local governments may not require private employers to pay a wage or benefit that state or federal law does not. | Montana Code Annotated 2025, §7-1-111(23) (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
| Item | Value | Effective | Source |
|---|---|---|---|
| State program | None | Montana DLI, Wage and Hour Frequently Asked Questions (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From the first employee | Montana DLI, Uninsured Employers' Fund: Frequently Asked Questions (opens in a new tab) | |
| State fund | Montana State Fund (opens in a new tab) | Montana DLI, Uninsured Employers' Fund: Frequently Asked Questions (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in Montana
Employer taxes and contributions on one employee's pay in Montana, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
- Employer taxes and contributions per check
- $217.62 to $240.70
- First check of the year
- Cost per check
- $2,525.31 to $2,548.39
- Pay included, first check
- Cost per year
- $65,190.14 to $65,663.14
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,484.23, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Montana unemployment | 1.18% to 2.18% on the first $47,300The 2026 average rate of the employer's industry, 1.00% to 2.00%, plus the 0.18% Administrative Fund Tax (1.18% to 2.18% in all); construction 2.00% + 0.18% | $27.23 to $50.31None after check 21 | $558.14 to $1,031.14 | Montana DLI, Unemployment Insurance Contribution Taxable Wage Base & Rates for 2026 (PDF) (opens in a new tab) |
| Employer taxes and contributions | $217.62 to $240.70 | $5,190.14 to $5,663.14 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,525.31 to $2,548.39 | $65,190.14 to $65,663.14 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
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Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- Montana DLI, Unemployment Insurance Division: Employer Resources (opens in a new tab)
- Montana DLI, Unemployment Insurance Contribution Taxable Wage Base & Rates for 2026 (PDF) (opens in a new tab)
- Montana DLI, UI Contribution Rates (opens in a new tab)
- Montana DLI, Unemployment Insurance Division, Employer Handbook (rev. January 2025) (PDF) (opens in a new tab)
- US DOL, FUTA Credit Reductions (opens in a new tab)
- Montana Department of Revenue, How to Open or Close a Montana Withholding Account (opens in a new tab)
- Montana Department of Revenue, Montana Employer and Information Agent Guide with Withholding Tax Tables, 2026 (PDF) (opens in a new tab)
- Montana Department of Revenue, North Dakota Reciprocity Agreement (opens in a new tab)
- Montana Department of Revenue, Montana Tax Allowances and Exemptions (Form MW-4) (opens in a new tab)
- Montana Code Annotated 2025, §7-1-112(1) (opens in a new tab)
- Montana DLI, Employment Relations Division, Montana's Minimum Wage (opens in a new tab)
- Montana Code Annotated 2025, §7-1-111(23) (opens in a new tab)
- Montana DLI, Wage and Hour Frequently Asked Questions (opens in a new tab)
- Montana DLI, Uninsured Employers' Fund: Frequently Asked Questions (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.