Montana SUI Rates 2026: What Employers Pay for Unemployment Insurance

State Unemployment Insurance (SUI) in Montana is a direct employer cost. Unlike income tax withholding, SUI contributions come entirely out of your business — employees do not contribute. Understanding how the rates work and what drives them up or down can have a real impact on your payroll budget.

SUI at a Glance

New Employer Rate: 1.18%

When you first register as an employer in Montana, you are assigned the new employer SUI rate of 1.18%. This rate applies until you have enough employment history for the state to calculate an experience-based rate — typically after 2–3 years of quarterly reporting.

Experienced Employer Rates: 0.13%–6.30%

After your initial period, Montana assigns an experience rate based on your claims history. The more unemployment claims charged to your account relative to the wages you’ve paid, the higher your rate. Rates range from 0.13%–6.30%.

The $43,000 Wage Base

SUI tax in Montana only applies to the first $43,000 of each employee’s wages per calendar year. Once an employee’s year-to-date wages exceed $43,000, no additional SUI tax is owed for that employee for the rest of the year.

Total Annual Cost Per Employee

At the new employer rate of 1.18%, your maximum SUI cost per employee is approximately $507.40 per year. Actual cost may be lower if the employee does not earn $43,000 annually.

💼 From the Payroll Desk

SUI is often the most variable employer-paid tax. A single unemployment claim can raise your rate significantly. Track your experience rate annually and budget accordingly.

How Experience Rating Works

Montana uses an experience rating system to determine each employer’s SUI rate. The state looks at the ratio of unemployment benefits charged to your account versus the taxable wages you’ve reported. A lower ratio of claims to wages results in a lower rate.

How to Register

Register for a Montana SUI account through the Montana Department of Labor and Industry. You’ll receive an employer account number and your initial SUI rate assignment.

For step-by-step registration instructions, see our Montana New Employer Registration guide.

Filing and Payment

Montana SUI taxes are filed quarterly. You must submit a quarterly wage report listing all employees and their wages, along with payment for any SUI tax owed. Reports are typically due by the last day of the month following the end of each quarter (April 30, July 31, October 31, January 31).

How to Keep Your Rate Low

• Minimize layoffs: Every unemployment claim charged to your account increases your rate
• Respond to claims promptly: Contest fraudulent or ineligible claims
• Document terminations: “For cause” terminations with proper documentation may not be charged to your account
• Maintain stable employment: Consistent employment levels over time lead to lower experience ratings

Frequently Asked Questions

What is the Montana SUI rate for new employers in 2026?

New employers in Montana pay an SUI rate of 1.18% on the first $43,000 of each employee's wages.

What is the Montana SUI wage base for 2026?

The Montana SUI wage base for 2026 is $43,000. Once an employee's year-to-date wages exceed this amount, no additional SUI tax is owed for that employee.

How is the Montana SUI experience rate calculated?

Montana calculates experienced employer SUI rates based on your claims history — the ratio of unemployment benefits charged to your account versus the wages you've paid. Rates range from 0.13%–6.30%.

How do I register for Montana SUI?

Register through the Montana Department of Labor and Industry at https://dli.mt.gov. You'll receive an employer account number and your assigned SUI rate.

Can I lower my Montana SUI rate?

Yes. Minimize layoffs, respond to all unemployment claims promptly, and maintain a stable workforce. Over time, fewer claims against your account will reduce your experience-rated SUI rate.