Last checked October 29, 2026.
Montana taxes 2026 income at two rates: 4.7% on the first $47,500 of taxable income for single filers, and 5.65% on everything above that. The top rate falls to 5.4% in 2027, and the 4.7% bracket gets wider. Montana has no local income taxes, so these are the only state income tax rates anywhere in the state.
2026 Montana income tax brackets
| Rate | Single / married filing separately | Head of household | Married filing jointly |
|---|---|---|---|
| 4.7% | $1 to $47,500 | $1 to $71,250 | $1 to $95,000 |
| 5.65% | Over $47,500 | Over $71,250 | Over $95,000 |
Source: Montana Department of Revenue, HB 337: 2026–2027 Individual Income Tax Changes. The amounts are taxable income, not gross pay.
What changes in 2027
For tax year 2027 the 4.7% rate covers the first $65,000 of taxable income for single filers ($97,500 head of household, $130,000 married filing jointly), and the top rate drops to 5.4%. Both changes come from House Bill 337, signed in 2025.
How Montana calculates your tax
Montana starts from your federal taxable income, meaning your income after the federal standard deduction ($16,100 for a single filer in 2026) or your itemized deductions. Montana doesn’t have its own standard deduction on top of that. A single filer earning $65,000 in wages has $48,900 of federal taxable income, so they pay 4.7% on $47,500 and 5.65% on the remaining $1,400.
Take-home pay examples (2026, single filer)
| Gross salary | Federal income tax | Montana income tax | Social Security + Medicare | Take-home pay | Montana tax as % of pay |
|---|---|---|---|---|---|
| $35,000 | $2,020 | $888 | $2,678 | $29,414 | 2.5% |
| $50,000 | $3,820 | $1,593 | $3,825 | $40,762 | 3.2% |
| $65,000 | $5,620 | $2,312 | $4,973 | $52,096 | 3.6% |
| $85,000 | $9,870 | $3,442 | $6,503 | $65,186 | 4.0% |
| $120,000 | $17,570 | $5,419 | $9,180 | $87,831 | 4.5% |
Our calculation: W-2 wages, single filer, 2026 federal standard deduction and brackets, no pre-tax retirement contributions, no credits. Your withholding and refund will vary. To find the salary you need in a specific town, use the Montana salary calculator.
Montana earned income tax credit
Starting in tax year 2026, Montana’s earned income tax credit equals 20% of the federal EITC. To claim it you must live in Montana and qualify for the federal credit.
Numbers that are out of date online
- 6.9% top rate: this was Montana’s top rate through tax year 2021, when the state had seven brackets. It was 6.75% in 2022, then 5.9% from 2024 when the state moved to two brackets.
- 5.9% top rate: this applied through tax year 2025. In 2026 it is 5.65%.
- 4.7% only up to $20,500 or $21,100: those were the old bracket cutoffs. In 2026 the 4.7% bracket runs to $47,500 for single filers.
Related
- Montana has no sales tax, except in resort towns
- Montana property tax and the homestead rate
- How much you need to live in Montana
Sources
- Montana Department of Revenue: HB 337, 2026–2027 Montana Individual Income Tax Changes (Nov 14, 2025)
- Montana Governor’s Office: HB 337 signing
- IRS Rev. Proc. 2025-32: 2026 federal standard deduction and brackets