Montana State Income Tax Withholding
Last Updated: January 2026
Overview
Montana imposes a progressive state income tax with two brackets. The state recently simplified its tax structure and reduced the top rate from 5.9% to 5.65% for 2026.
2026 Tax Rates
Single Filers
| Taxable Income | Rate |
|---|---|
| $0 - $47,500 | 4.7% |
| Over $47,500 | 5.65% |
Married Filing Jointly
| Taxable Income | Rate |
|---|---|
| $0 - $95,000 | 4.7% |
| Over $95,000 | 5.65% |
Note: The top rate of 5.65% is reduced from 5.9% in prior years.
Deductions and Exemptions
Standard Deduction:
- Single: $5,820
- Married Filing Jointly: $11,640
- Head of Household: $8,700
Personal Exemption: $3,040 per person
Special Considerations
State W-4 Form
Montana accepts the federal Form W-4 for withholding purposes. Employees may submit Montana Form MW-4 to claim different allowances or additional withholding for state purposes.
Tax Structure Simplification
Montana significantly simplified its tax structure in recent years, reducing from six brackets to two. This makes withholding calculations more straightforward.
No Local Income Taxes
Montana does not permit local income taxes. Only state withholding is required.
Withholding Tables
Montana Department of Revenue publishes annual withholding tables with both percentage method and wage bracket options.
Electronic Filing
Employers with Montana withholding tax liability exceeding $10,000 annually must file and pay electronically.
Rate Reduction History
- Prior years: Six brackets with rates from 1% to 6.75%
- Recent reform: Two brackets at 4.7% and 5.9%
- 2026: Top rate reduced to 5.65%