How Montana taxes wages
Two brackets; the top rate drops to 5.65% for 2026. Starts from federal taxable income.
At $65,000 of wages, that is the 26th-lowest estimated bill of the 42 jurisdictions (including DC) that tax wages.
Its top rate of 5.65% is the 17th-highest among the 26 jurisdictions with progressive brackets.
Rates range from 4.7% to 5.65%. We don’t list the full bracket schedule here yet; for exact thresholds, see the official Montana tax agency website.
Example: $65,000 salary, single filer
| Wages | $65,000 |
|---|---|
| Income not taxed (approx. deduction, exemptions, 0% bracket) | −$16,100 |
| Income taxed | $48,900 |
| Average rate used for the estimate | × 5.2% |
| Estimated Montana income tax | $2,543 |
That works out to about $212 a month, or an effective rate of 3.91% of wages.
Calculators for Montana
- Paycheck calculator
Take-home pay after federal income tax, Social Security, Medicare, and Montana income tax, with Montana selected.
- Tips and overtime calculator
Your federal deduction for qualified tips and overtime, with Montana selected and its state rules applied to the Montana estimate.
- Senior deduction calculator
A federal deduction of up to $6,000 for each person 65 or older, after the income phase-out.
- Car loan interest calculator
A federal deduction for interest on a loan for a new, U.S.-assembled vehicle.
Does Montana tax tips and overtime?
Montana follows the federal tips and overtime deduction. Montana starts from federal taxable income, so the Schedule 1-A deductions “are included in the calculation of Montana taxable income.”
The example on this page taxes full wages. The tips and overtime calculator subtracts the deduction for your tips and overtime before it estimates your Montana tax.
Source: Montana DOR: 2025 Form 2 instructions (PDF), Tax year 2025. Checked . See how every state treats tips and overtime
To see your federal deduction and Montana tax together, open the tips and overtime calculator with Montana selected.
Montana vs. neighboring states
Montana has the highest estimated bill among its neighbors. Workers in South Dakota, Wyoming, North Dakota, and Idaho would owe less on the same salary.
| State | Est. tax on $65,000 | vs. Montana |
|---|---|---|
| South Dakota | $0 | −$2,543 |
| Wyoming | $0 | −$2,543 |
| North Dakota | $8 | −$2,535 |
| Idaho | $2,337 | −$206 |
Official source
For forms, exact brackets, and filing deadlines, go to the official Montana tax agency website.
Related states
- North Dakota0%–2.5% progressive
- Idaho5.3% flat tax
- South DakotaNo state income tax
- WyomingNo state income tax