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Taxes
Montana Payroll Taxes 2026: Complete Overview for Employers
Montana flat 4.7% income tax, SUI on the first $43,000, and all employer tax obligations explained.
Practical guides on MT payroll taxes, employer registration, SUI, minimum wage, and labor laws — written for small business owners, not accountants.
Written by payroll professionals at Pacific Data Services — trusted since 1969.
Montana recently simplified to a flat 4.7% income tax rate, making withholding straightforward after years of progressive brackets.
Montana does not allow a tip credit — all tipped employees must receive the full state minimum wage of $10.55/hr.
Montana’s $43,000 SUI wage base is well above average, meaning employers pay unemployment tax on more wages per employee.
Montana flat 4.7% income tax, SUI on the first $43,000, and all employer tax obligations explained.
Get your EIN, register with Montana, set up withholding, new hire reporting — the complete checklist.
New employer rate 1.18%, experienced range 0.13%–6.30%, wage base $43,000.
Montana minimum wage $10.55/hr. Montana’s minimum wage is $10.55/hr, adjusted annually for inflation. No tip credit is allowed — tipped employees must receive the full minimum wage.
IRS classification rules, Montana-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for Montana small businesses.