Montana Salary Calculator

Montana Income Tax Overview (2026)

Montana has a graduated income tax with rates from 1% to 5.65%. The top 5.65% rate applies to income above $20,500 for single filers. Montana has no sales tax, which benefits everyday purchases.

In addition to state tax, all Montana workers pay federal income tax (10%–37% marginal rates) and FICA — Social Security (6.2%) and Medicare (1.45%), totaling 7.65% of gross wages. Voluntary deductions like 401(k) contributions or health insurance premiums further reduce taxable income.

Cost of Living in Montana

Montana has seen significant cost increases since 2020 as remote workers relocated. Bozeman median home prices now exceed $600,000. Billings and Missoula are around $380,000–$450,000. Montana has no sales tax.

When evaluating a job offer in Montana, consider not just the salary but total compensation — employer benefits, retirement match, and location-specific costs. A $70,000 salary in a low cost-of-living Montana city may be more livable than $85,000 in a high-cost metro.

Top Industries and Employers in Montana

Montana's economy is anchored by agriculture, tourism, healthcare, mining, federal lands management. The state median household income is approximately $56,000 per year, though this varies significantly by region and occupation.

Montana's minimum wage of $10.55/hour sits above the federal floor, giving entry-level workers a higher starting point than in federal-minimum states, and the state's $56,000 median household income sits close to the national average, with agriculture as the largest single influence on local pay scales.

How Montana Compares to Other States

Montana's 5.65% top rate means a worker earning $75,000 pays approximately $4,425 in state income tax annually. Compared to zero-tax states, this reduces take-home by $4,425/year — a meaningful difference that compounds significantly over a career.

For workers evaluating a potential relocation, state income tax is just one factor. Property taxes, sales taxes, cost of living, job market depth, and quality of public services all contribute to the complete financial picture. Use our Salary Calculator to compare take-home pay across all 50 states side by side.

How to Calculate Your Montana Take-Home Pay

Your net pay is your gross salary minus: (1) federal income tax based on your bracket and filing status, (2) FICA at 7.65% of gross wages, (3) Montana state income tax at 5.65%, and (4) any voluntary deductions such as 401(k), HSA, or health insurance premiums. The calculator above handles steps 1–3 automatically.

Tax-Advantaged Strategies for Montana Workers

Regardless of your state tax rate, contributing to pre-tax retirement accounts like a 401(k) or traditional IRA reduces your federal taxable income dollar for dollar. In 2026, you can contribute up to $24,500 to a 401(k) and $7,500 to an IRA. For someone earning $60,000 in Montana, maxing the 401(k) reduces federal taxable income by $24,500 — saving approximately $2,940 in federal tax (at 12% marginal rate) plus approximately $1,384 in Montana state tax.