Montana Income Tax Calculator 2026
See your Montana state tax, effective rate, and take-home pay in 60 seconds.
- This state uses a simplified estimate: a single rate schedule applied to gross income less the standard deduction and personal exemption. Local income taxes, mandatory state payroll contributions, retirement income exclusions, credits, and state-specific adjustments are not modeled.
Estimated federal and state take-home pay based on the information entered. Local taxes, state payroll programs, employer benefits, itemized deductions, tax credits, and special state adjustments may not be included. Tax year 2026. Montana figures last verified June 12, 2026 — see sources below.
Worked example: A single filer earning $85,000 in Montana
Start with $85,000 of wages. After $16,100 in modeled state deductions/exemptions, running it up Montana's brackets produces about $3,819 in state income tax — an effective state rate near 4.5%, with a 5.9% marginal rate. Federal income tax and FICA are calculated separately and shown in the calculator above.
Assumes a single filer taking the standard treatment. Figures are educational estimates.
How Montana taxes income
Montana uses a graduated income tax: your income is taxed in slices, with each slice taxed at a higher rate as you move up the brackets from 4.7% to 5.9%.
Montana generally starts from your federal income, applies state-specific adjustments and deductions, and then runs the result up the brackets. Credits and exemptions can change the final number — confirm the current details with the Montana Department of Revenue.
2026 rate structure
| Rate | Single — taxable income up to | MFJ — taxable income up to |
|---|---|---|
| 4.70% | $20,500 | $41,000 |
| 5.90% | and above | and above |
Retirement income & Social Security
Montana retirement income treatment varies by plan type, your age, and whether the distribution is qualifying. Many states exempt some or all 401(k), IRA and pension income for retirees, and this calculator does not model those exclusions. Check the Montana Department of Revenue for the rules that apply to you before assuming distributions are taxable.
Local taxes & reciprocity
Montana has no local or city income tax — only the state income tax applies to wages.
Reciprocity: Montana has no income tax reciprocity agreements. If you work across state lines, you generally file a non-resident return where you work and claim a credit to avoid double taxation.
Notable deductions, credits & other taxes
Deductions & credits
- Montana standard deduction (about $16,100 single / $32,200 MFJ in this model — verify current amounts)
- Credit for income taxes paid to other states (for residents with out-of-state income)
- State versions of common credits — earned income, child/dependent care, and education credits — where offered
Capital gains: Montana has no separate capital gains rate. Capital gains included in your federal AGI are taxed as ordinary income at Montana's graduated rates.
Property tax: Property taxes in Montana are assessed and collected locally, so effective rates vary widely by county and municipality. Check your county assessor or the Montana Department of Revenue for local rates.
Montana vs. neighboring states
Compared with its neighbors — Idaho, North Dakota, South Dakota, Wyoming — Montana's graduated rates up to 5.9% sit within the regional range. Effective rates depend heavily on income level, deductions, and local taxes. Note that South Dakota and Wyoming have no income tax at all, which can matter for people living or working near the border.
Montana state tax FAQs
What is the Montana state income tax rate for 2026?
Montana uses graduated brackets ranging from 4.7% to 5.9%, with higher rates applying only to income above each threshold.
Does Montana tax retirement income or Social Security?
Montana taxes a portion of Social Security benefits, subject to income thresholds and exemptions. Confirm how much of your benefit is taxable with the Montana Department of Revenue. Treatment of other retirement income depends on the plan type, your age, and whether the distribution is qualifying — Montana may exempt some or all of it for retirees, and this calculator does not model those exclusions. Verify with the Montana Department of Revenue.
How are capital gains taxed in Montana?
Montana has no separate capital gains rate. Capital gains included in your federal AGI are taxed as ordinary income at Montana's graduated rates.
Is there a local or city income tax in Montana?
Montana has no local or city income tax — only the state income tax applies to wages.
Does Montana have tax reciprocity with neighboring states?
Montana has no income tax reciprocity agreements. If you work across state lines, you generally file a non-resident return where you work and claim a credit to avoid being taxed twice.
Sources & verification
Last verified June 12, 2026.