How your paycheck is taxed in Montana
A Montana paycheck is reduced by federal income tax, Social Security (6.2%), Medicare (1.45%), and state income tax of 4.7% to 5.65%. The federal side uses the 2026 standard deduction of $16,100 (single) or $32,200 (joint) and seven brackets from 10% to 37%. The state side is described below. Montana starts from federal taxable income, so the federal standard deduction applies.
Montana's table is based on the 2026 schedule and is marked estimated; see the notes below for what may differ in 2026.
Formula
Net pay = Gross pay - Pre-tax deductions - Federal income tax - Social Security - Medicare - Montana income tax - After-tax deductions. Federal taxable income is gross minus pre-tax deductions minus the standard deduction. Montana taxable income is wages minus the state standard deduction.
Montana income tax brackets for 2026
Montana has two brackets. House Bill 337 (2025) widens the 4.7% bracket to $47,500 (single) and $95,000 (joint) and lowers the top rate to 5.65% for 2026, then 5.4% for 2027. These scheduled figures are used and marked estimated. Brackets apply to Montana taxable income, which is wages after the $16,100 (single) or $32,200 (joint) standard deduction.
| Rate | Single taxable income |
|---|---|
| 4.7% | $0 to $47,500 |
| 5.65% | Over $47,500 |
| Rate | Married filing jointly taxable income |
|---|---|
| 4.7% | $0 to $95,000 |
| 5.65% | Over $95,000 |
Worked examples: single filer, paid biweekly
Each row is a single filer with no pre-tax deductions, using the 2026 federal tables and the Montana rules above. The $75,000 example: federal taxable income is $58,900 after the $16,100 standard deduction, giving $7,670.00 of federal tax (10% on the first $12,400, 12% up to $50,400, 22% on the rest). Social Security is 6.2% of $75,000 = $4,650.00, Medicare is 1.45% = $1,087.50, and Montana tax on $58,900 of state taxable income is $2,876.60. Net pay is $58,715.90 a year, or $2,258.30 every two weeks.
| Salary | Federal tax | Social Security | Medicare | Montana tax | Net per year | Net per paycheck |
|---|---|---|---|---|---|---|
| $50,000 | $3,820 | $3,100 | $725 | $1,593 | $40,762 | $1,567.76 |
| $75,000 | $7,670 | $4,650 | $1,088 | $2,877 | $58,716 | $2,258.30 |
| $100,000 | $13,170 | $6,200 | $1,450 | $4,289 | $74,891 | $2,880.42 |
Effective total tax rates in these examples run from 18.5% at $50,000 to 25.1% at $100,000. Married filers with the same household income pay less federal tax because the joint standard deduction and brackets are twice as wide, and Montana's joint brackets are wider too.
How the Montana brackets apply to $75,000
State taxable income for the single $75,000 example is $58,900. Each slice is taxed at its own rate and the pieces are added up, so the marginal rate (5.65%) is higher than the average rate on all wages (3.84%).
| Bracket | Income in bracket | Tax |
|---|---|---|
| 4.7% | $47,500 | $2,232.50 |
| 5.65% | $11,400 | $644.10 |
| Total Montana tax | $2,876.60 |
Hourly pay in Montana
Hourly workers are annualized the same way: rate x hours per week x 52. At $20 an hour for 40 hours, gross pay is $41,600 a year or $800 a week. Federal income tax is $54.08 a week, Social Security $49.60, Medicare $11.60, and Montana tax $23.05, leaving $661.68 per weekly paycheck. Overtime raises the annualized figure and can push a few dollars into the next federal bracket, but only those dollars are taxed at the higher rate.
Married filing jointly on $75,000
A married couple filing jointly with $75,000 of combined wages gets the $32,200 joint standard deduction and brackets twice as wide, so federal income tax falls to $4,640.00 from $7,670.00 for a single filer, and Montana tax is $2,011.60 instead of $2,876.60. Social Security and Medicare do not change with filing status. Take-home pay for the couple is $62,610.90 a year, or $2,408.11 per biweekly paycheck.
Estimates for 2026 using federal and state tables; local taxes, benefits, and credits vary. Not tax advice. Compare other states on the national paycheck calculator.