Montana Income Tax Rates, Brackets, and Calculator for 2026
Montana has two income tax brackets with income tax rates from 4.7% to 5.65% for 2026. Compare MT state tax at $75,000, $100,000, and other income levels. See how filing status changes the results and where Montana ranks among states.
Montana uses two individual income tax brackets with rates of 4.7% and 5.65% for 2026. These rates apply to ordinary taxable income, including wages after applicable deductions. The higher rate begins above $47,500 for Single and Married Filing Separately, $95,000 for Married Filing Jointly, and $71,250 for Head of Household. The 2026 tax year covers income earned from January 1, 2026 through December 31, 2026. For calendar-year filers, federal Form 1040 series returns and Montana Form 2 returns are generally due April 15, 2027.
Montana simplified its income tax system in 2024, replacing seven brackets with two and using federal taxable income as the starting point for state calculations. House Bill 337 reduces the top rate from 5.9% to 5.65% for 2026 and substantially widens the lower bracket. The joint bracket is twice as wide as the Single bracket, which helps explain why our two examples have the same effective rate. Another enacted reduction takes effect next year, as explained in the Montana income tax rates for 2027 FAQ.
Tax Calculator
Montana Income Tax Calculator for 2026
Enter annual household income and select a filing status to estimate Montana income tax for 2026. Results open in our All 50 States income tax calculator with Montana highlighted. The examples below provide a starting point, showing Montana income tax for a Single filer earning $50,000 to $150,000 annually. The $50,000 example stays in the 4.7% bracket, while the other examples reach the 5.65% bracket. The effective tax rate rises across these income levels. Montana's rank also changes because other states' rates, deductions, and credits affect tax differently at each income level.
How Much Will You Pay in Montana?
| Household Income | State Tax | Marginal Rate | Effective Rate | State Rank |
|---|---|---|---|---|
| $50,000 | $1,593 | 4.7% | 3.19% | 32 |
| $75,000 | $2,877 | 5.65% | 3.84% | 33 |
| $100,000 | $4,289 | 5.65% | 4.29% | 35 |
| $125,000 | $5,702 | 5.65% | 4.56% | 35 |
| $150,000 | $7,114 | 5.65% | 4.74% | 35 |
2026 Montana State Tax: Single filer, full-year resident, wages only, no dependents, and under age 65. Includes the $16,100 federal standard deduction, with no other adjustments or tax credits. Federal, payroll, and local taxes are excluded.
2026 Montana State Rank: Montana ranks in the moderate to high income tax range nationally across these examples, with rankings from 32nd to 35th. The comparison includes all 50 states and the District of Columbia at the same income and filing status, with 1 representing the lowest effective rate. Rankings use unrounded figures. Equal rates share a rank. See the All 50 States income tax calculator for assumptions and sources.
Key takeaway: At $100,000 of annual income, a Single filer pays an estimated $4,289 in Montana state income tax for 2026. The marginal tax rate is 5.65%, while the effective rate is 4.29% after the standard deduction and lower bracket rate are applied.
Tax Rates
Montana Income Tax Rates
Montana's two individual income tax rates on ordinary income are 4.7% and 5.65% for 2026. Single and Married Filing Separately taxpayers use the same thresholds. The Married Filing Jointly threshold is twice the Single amount, while Head of Household uses a threshold between the two. Each rate applies only to the portion of taxable income within its bracket. Reaching the higher bracket does not cause all income to be taxed at the higher rate.
2026 Montana Income Tax Brackets
| Bracket | Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
|---|---|---|---|---|---|
| 1 | 4.7% | $0 - $47,500 | $0 - $95,000 | $0 - $47,500 | $0 - $71,250 |
| 2 | 5.65% | $47,501+ | $95,001+ | $47,501+ | $71,251+ |
Montana used rates of 4.7% and 5.9% in both 2024 and 2025. The 2026 changes go beyond a routine inflation adjustment. The Single lower bracket expanded from $21,100 in 2025 to $47,500, and the joint lower bracket expanded from $42,200 to $95,000. More taxable income can therefore remain at 4.7% before the reduced top rate applies. Montana law provides for another bracket expansion in 2027, followed by annual inflation adjustments beginning in 2028.
Compare States
Compare Montana to Other States
The next table compares Montana with its four neighboring states, plus Colorado, Utah, and Oregon, at $75,000 of annual income for a Single filer. The calculations use the same household assumptions and apply each state's deductions, exemptions, and credits. States appear from lowest to highest state income tax, with the difference measured against Montana. The marginal rate identifies the tax bracket reached, while the effective rate is state income tax divided by $75,000 of household income, expressed as a percentage.
Montana vs Other States at $75,000 of Income (2026)
| State Name | State Rank | Tax on $75K Income | Difference | Marginal Rate | Effective Rate |
|---|---|---|---|---|---|
| South Dakota | 1 | $0 | −$2,877 | 0% | 0.00% |
| Wyoming | 1 | $0 | −$2,877 | 0% | 0.00% |
| North Dakota | 10 | $182 | −$2,695 | 1.95% | 0.24% |
| Colorado | 27 | $2,592 | −$285 | 4.4% | 3.46% |
| Idaho | 32 | $2,867 | −$10 | 5.3% | 3.82% |
| Montana | 33 | $2,877 | $0 | 5.65% | 3.84% |
| Utah | 37 | $3,110 | +$233 | 4.45% | 4.15% |
| Oregon | 51 | $5,055 | +$2,178 | 8.75% | 6.74% |
2026 State Income Tax Comparison: Single filer, full-year resident, wages only, no dependents, and under age 65. A negative difference means less state income tax than Montana. Differences are calculated before rounding to whole dollars. South Dakota and Wyoming do not tax wage income. Federal, payroll, property, sales, and local taxes are excluded.
2026 State Rank: Compares all 50 states and the District of Columbia at $75,000 of income for a Single filer, with 1 representing the lowest effective rate. Rankings use unrounded figures. Equal rates share a rank. The figures follow the state income tax calculator, including its disclosed prior-year inputs where final 2026 amounts are unavailable.
Key takeaway: At $75,000 of annual income, Montana has higher state income tax than all four of its neighbors in this comparison. Its estimated $2,877 tax is only about $10 more than Idaho, but about $2,695 more than North Dakota. South Dakota and Wyoming have no state tax on these wages. Among the other states shown, Montana is about $233 lower than Utah and $2,178 lower than Oregon.
Examples
Montana Income Tax Calculation Examples
The goal of these examples is to compare Single and Married Filing Jointly statuses at the same $75,000 annual income per person. The Single example uses $75,000 of household income, while the married example assumes each spouse earns $75,000, for a combined $150,000. The married couple files jointly for both federal and Montana taxes. The results match our 2026 income tax calculator using those amounts and the corresponding filing status.
To simplify the calculations, both examples assume full-year Montana residency, W-2 wages only, no dependents, and taxpayers under age 65 who are not blind or claimed as dependents. Montana starts with federal taxable income and then applies state additions and subtractions when required. Here, federal taxable income equals household wages minus the federal standard deduction. We include no itemized deductions, other federal deductions, Montana adjustments, or tax credits.
Montana Filing Status Comparison (2026 Tax Year)
| Tax Metric | Single | Married Filing Jointly |
|---|---|---|
| Household Income | $75,000 | $150,000 |
| Federal Standard Deduction | $16,100 | $32,200 |
| Taxable Income | $58,900 | $117,800 |
| State Income Tax | $2,877 | $5,753 |
| Effective Tax Rate | 3.84% | 3.84% |
| Marginal Tax Rate | 5.65% | 5.65% |
The 2026 rates and bracket thresholds come from enacted Montana law and the Department of Revenue's explanation of House Bill 337. The standard deductions come from the IRS's published 2026 inflation adjustments. Montana's 2025 Form 2 instructions support the filing procedures and federal taxable income starting point. Final 2026 annual instructions should be checked when published.
Looking at the table above, both examples reach the same 5.65% marginal tax rate and pay 3.84% of household income in Montana tax. The joint standard deduction and lower bracket are exactly twice the Single amounts. Before rounding, the married household's $5,753.20 tax equals two Single tax amounts of $2,876.60. This comparison therefore shows no Montana marriage penalty. The apparent $1 difference when comparing the rounded table amounts comes from rounding each displayed result independently.
Since 2024, Montana generally requires the same filing status as the federal return. The former option to file separately on the same Montana return while filing jointly for federal taxes is no longer available. Different earnings splits, deductions, or credits can change the marriage comparison. Next, we will review the step-by-step calculations for each filing status.
Step-by-Step Example 1: Single
For a single filer with $75,000 of household income, first subtract the $16,100 federal standard deduction. This leaves $58,900 of federal taxable income, which is also Montana taxable income under these assumptions. The first $47,500 is taxed at 4.7%, and the remaining $11,400 is taxed at 5.65%.
- Montana taxable income: Subtract the federal standard deduction from household income. $75,000 − $16,100 = $58,900
- Tax on the first bracket: Multiply the first $47,500 by 4.7%. $47,500 × 4.7% = $2,232.50
- Tax on the second bracket: Subtract $47,500 from $58,900, leaving $11,400 taxed at 5.65%. $11,400 × 5.65% = $644.10
- Estimated Montana income tax: Add the tax from both brackets. $2,232.50 + $644.10 = $2,876.60
Montana effective tax rate: $2,876.60 divided by $75,000 of household income equals 3.84%, rounded. The estimated state income tax rounds to $2,877 in the comparison table.
Montana marginal tax rate: 5.65%, the rate applied to the next dollar of Montana taxable income in this example.
Step-by-Step Example 2: Married Filing Jointly
Now let's apply the calculation to a married couple filing jointly. Each spouse earns $75,000, for a combined household income of $150,000. Subtracting the $32,200 joint federal standard deduction leaves $117,800 of taxable income. The joint brackets apply to that household total, with the first $95,000 taxed at 4.7% and the remaining $22,800 taxed at 5.65%.
- Montana taxable income: Subtract the joint federal standard deduction from household income. $150,000 − $32,200 = $117,800
- Tax on the first bracket: Multiply the first $95,000 by 4.7%. $95,000 × 4.7% = $4,465
- Tax on the second bracket: Subtract $95,000 from $117,800, leaving $22,800 taxed at 5.65%. $22,800 × 5.65% = $1,288.20
- Estimated Montana income tax: Add the tax from both brackets. $4,465 + $1,288.20 = $5,753.20
Montana effective tax rate: $5,753.20 divided by $150,000 of household income equals 3.84%, rounded. The estimated state income tax rounds to $5,753 in the comparison table.
Montana marginal tax rate: 5.65%, the rate applied to the next dollar of Montana taxable income in this example.
Takeaway
Montana Income Tax Takeaways
Higher rates apply only within the higher bracket: Montana's 5.65% rate begins above $47,500 of taxable income for Single and $95,000 for Married Filing Jointly in 2026. Most of the taxable income in our two examples remains in the 4.7% bracket. Only $11,400 for Single and $22,800 for the married household is taxed at the higher rate.
The effective rate is below the bracket rate: Both examples reach the 5.65% marginal rate but pay 3.84% of household income in state tax. The federal standard deduction removes part of household income from tax, and the lower bracket reduces tax on part of the remaining income. As income rises, those benefits cover a smaller share of wages.
Doubled joint brackets prevent a marriage penalty in these examples: The joint standard deduction and bracket threshold are twice the Single amounts. At $75,000 of wages per spouse, the $5,753.20 joint tax equals two Single tax amounts of $2,876.60 before rounding. This result does not require a marriage credit or separate state returns.
Montana is higher than its neighbors in this comparison: At $75,000 of Single income, Montana's tax is about $10 more than Idaho and $2,695 more than North Dakota. South Dakota and Wyoming do not tax these wages. Nationally, Montana ranks 33rd at that income level, in the moderate income tax range.
FAQ
Montana Income Tax Questions and Answers
What are the Montana income tax rates for 2026?
Montana has two individual income tax rates for ordinary income in 2026: 4.7% and 5.65%. The state uses progressive brackets, so each rate applies only to the portion of taxable income within its bracket. The top 5.65% rate begins above $47,500 of taxable income for Single and Married Filing Separately, $95,000 for Married Filing Jointly and Qualifying Surviving Spouse, and $71,250 for Head of Household.
What are the Montana income tax rates for 2027?
Montana's two ordinary income tax rates for 2027 are 4.7% and 5.4% under House Bill 337. The top rate falls from 5.65%, and the lower bracket becomes wider again. The 5.4% rate applies only to taxable income above $65,000 for Single and Married Filing Separately, $130,000 for Married Filing Jointly and Qualifying Surviving Spouse, and $97,500 for Head of Household. These enacted changes begin in 2027 and do not affect the 2026 calculations on this page.
How much is Montana income tax on $75,000?
A Single filer earning $75,000 pays an estimated $2,877 in Montana state income tax for 2026. Subtracting the $16,100 federal standard deduction leaves $58,900 of taxable income. Tax before rounding is $2,876.60, producing a 3.84% effective rate and a 5.65% marginal rate. The calculation assumes a full-year resident under age 65 with wages only, no dependents, and no other deductions or credits.
How much is Montana income tax on $100,000?
A Single filer earning $100,000 pays an estimated $4,289 in Montana state income tax for 2026. The $16,100 federal standard deduction leaves $83,900 of taxable income. Applying the two brackets produces $4,289.10 before rounding, a 4.29% effective rate and a 5.65% marginal rate. This assumes a full-year resident under age 65 with wages only, no dependents, and no other deductions or credits.
What is the Montana marginal tax rate?
Montana's marginal income tax rate is 4.7% or 5.65% for ordinary income, depending on taxable income and filing status. Each rate applies to the dollars of taxable income within its bracket. For 2026, the higher rate begins above $47,500 for Single and Married Filing Separately, $95,000 for Married Filing Jointly, and $71,250 for Head of Household. Both our $75,000 Single and $150,000 joint examples reach the 5.65% bracket.
What is the Montana effective tax rate?
The effective tax rate is Montana state income tax divided by household income, expressed as a percentage. Our Single example pays $2,876.60 on $75,000 of wages, while the married household pays $5,753.20 on $150,000. Both results equal 3.84%, rounded. That is lower than the 5.65% marginal rate because the standard deduction removes some income from tax and the first bracket applies a lower rate.
Does Montana have a standard deduction?
Montana uses the federal standard deduction through its federal taxable income starting point rather than providing a separate state standard deduction. For 2026, the basic amounts are $16,100 for Single and Married Filing Separately, $32,200 for Married Filing Jointly and Qualifying Surviving Spouse, and $24,150 for Head of Household. Taxpayers must use the same deduction method as on their federal return, subject to Montana adjustments for itemized deductions.
The federal standard deduction increases for age 65 or blindness by $2,050 for each qualifying condition for an unmarried taxpayer who is not a surviving spouse, or $1,650 for each qualifying condition for a married taxpayer or qualifying surviving spouse. Montana also provides a separate, annually adjusted subtraction for taxpayers age 65 and older.
Does Montana have a personal exemption?
No. Montana eliminated its general personal exemption beginning in 2024. Instead, the federal standard or itemized deduction is reflected in the federal taxable income used to begin the Montana calculation. Specific Montana subtractions, including the age 65 subtraction, may still apply.
Does Montana have a dependent exemption?
No. Montana no longer provides a general dependent exemption deduction. A dependent can still affect eligibility for filing statuses and credits, including the Earned Income Tax Credit. Those benefits have their own qualification rules and are separate from a deduction for each dependent.
Does Montana offer an Earned Income Tax Credit?
Yes. For 2026, eligible Montana residents can claim a refundable credit equal to 20% of their federal Earned Income Tax Credit, up from 10% in 2025. The maximum federal credit is $8,231 for a household with three or more qualifying children, making the corresponding Montana credit about $1,646. Refundable means the credit can exceed the state income tax owed.
For three or more qualifying children, the 2026 federal credit reaches zero at $62,974 for Single or Head of Household and $70,244 for Married Filing Jointly. These limits use adjusted gross income or earned income, whichever is higher. Households with fewer qualifying children have smaller maximum credits and must meet lower income limits.
Does Montana have a Child Tax Credit?
No. Montana does not offer a general state Child Tax Credit for 2026. Eligible working families may qualify for Montana's Earned Income Tax Credit, which can provide a state refund.
Does Montana have a marriage penalty?
Our examples with each spouse earning $75,000 show no Montana marriage penalty for 2026. A married couple earning $75,000 each pays $5,753.20 before rounding, exactly twice the $2,876.60 tax for a Single filer earning $75,000. The joint standard deduction and lower bracket are twice the Single amounts. Different earnings splits, deductions, and credits can change the result, so this comparison does not establish the outcome for every married household.
Can married couples file separately in Montana but jointly for federal taxes?
No. Beginning in 2024, Montana requires taxpayers to use the same filing status as their federal return. The previous option to file separately on the same state return while filing jointly for federal taxes was eliminated. Federal joint filers therefore use Montana's joint brackets, including the $95,000 lower bracket limit for 2026.
References:
- HB337: 2026-2027 Montana Individual Income Tax Changes. Montana Department of Revenue, November 14, 2025. Explains the enacted ordinary income schedules for 2026 and 2027, wider brackets, and the increased state EITC. Retrieved October 9, 2026.
- MCA 15-30-2103: Rate of Tax and Net Long-Term Capital Gains. Montana Legislature. Establishes the 2026 schedule and the separate provisions effective January 1, 2027, including future bracket indexing. The two effective date versions must not be combined. Retrieved October 9, 2026.
- MCA 15-30-2101: Definitions. Montana Legislature. Defines Montana taxable income by reference to federal taxable income and state adjustments. Retrieved October 9, 2026.
- 2026 Publication 1: Montana Tax Withholding and Estimated Payments (PDF). Montana Department of Revenue. Publishes the 2026 and 2027 ordinary income tables and explains estimated tax procedures. This is estimated tax guidance, not final annual return instructions. Retrieved October 9, 2026.
- Montana Tax Simplification Resource Hub. Montana Department of Revenue. Explains the changes effective in 2024, including the federal taxable income starting point, filing status conformity, and repeal of general personal and dependent exemptions. Historical dollar amounts are not used as 2026 indexed allowances. Retrieved October 9, 2026.
- 2025 Montana Form 2 Instructions (PDF). Montana Department of Revenue. Supports filing procedures, federal deductions, Montana adjustments, and credit administration. Separately enacted and published 2026 figures replace prior-year rates, brackets, and EITC percentages. Retrieved October 9, 2026.
- 2025 Montana Tax Tables and Deductions. Montana Department of Revenue. Supplies the prior-year 4.7% and 5.9% rates and bracket thresholds used for the historical comparison. Retrieved October 9, 2026.
- MCA 15-30-2318: Earned Income Tax Credit. Montana Legislature. Establishes the 20% federal credit match, refundability, and qualification rules. Retrieved October 9, 2026.
- Revenue Procedure 2025-32: Tax Inflation Adjustments for 2026. Internal Revenue Service. Sections 4.06 and 4.14 supply the 2026 federal EITC maximums and income limits, standard deductions, and additional standard deductions for age or blindness. Retrieved October 9, 2026.