Montana Take-Home Pay Calculator (2026)

Montana has a graduated income tax with a top rate of 5.9%, which takes effect on income above $20,500 for single filers in 2026. The state recently simplified its bracket structure as part of a 2021 tax reform package that reduced rates and collapsed brackets. Previously Montana had seven brackets with a top rate of 6.9%. The new system has two brackets and a lower top rate, which benefits middle and upper earners.

Montana has no statewide sales tax, which is one of only five states without one. This means workers in Montana keep more of their after-tax income on purchases. The absence of sales tax reduces the overall effective state and local tax burden compared to neighboring states like Idaho (6% sales tax) and Wyoming (4% sales tax). For a household spending $40,000 per year on taxable goods, the sales tax savings alone can amount to $2,000 to $2,500 per year.

The standard deduction in Montana is $5,020 for single filers. This is lower than the federal standard deduction, which means Montana taxable income is higher than federal taxable income for most workers. A single worker earning $60,000 has roughly $54,980 of Montana taxable income, and the tax at blended rates comes to approximately $3,100 to $3,200.

Montana has no local income taxes. Cities like Billings, Missoula, and Great Falls do not levy a city wage tax. The 5.9% top rate combined with no sales tax puts Montana in a moderate position overall among states. Workers who spend heavily on taxable goods benefit from the sales tax exemption, while higher earners feel the 5.9% top rate on all income above $20,500.