Montana Tax Guide for Employers (2026) 

Montana’s progressive tax system has several unique characteristics. Filing status is a significant factor, as it determines which tax table is used. Unlike many states, Montana does not reduce income by allowances. The state also applies mandatory rounding up to the next dollar. 

Montana imposes a progressive income tax with multiple brackets. Filing status determines which tax table is used (Single, Married, or Head of Household). Notably, Montana does not use personal allowances to reduce taxable income—instead, the calculation relies entirely on filing status and the tax tables. Employees may also specify a fixed withholding amount on Form MW-4 that overrides the standard calculation. 

Montana supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 5%. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 1.18%. 

Follow these steps to begin withholding Montana payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the Montana Department of Revenue at mtrevenue.gov
3. Register for SUTA with the Montana Department of Labor and Industry at uid.dli.mt.gov
4. Submit a Netchex tax team request to enable Montana SIT and SUTA
5. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
6. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Montana payroll taxes on your behalf. 

The following are general filing and deposit deadlines for Montana payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at Montana Department of Revenue. 

Note: Deadlines are subject to change. Always confirm current requirements directly with Montana Department of Revenue at https://mtrevenue.gov/taxes/withholding/. 

The following official resources will help you stay current on Montana payroll tax requirements: 

• Montana Department of Revenue
• Montana DOR Withholding Tax

What is Montana’s top income tax rate? 

Montana’s top marginal income tax rate is 6.75%. 

What form do Montana employees complete? 

Employees complete Montana Form MW-4, the Montana Employee’s Withholding Allowance and Exemption Certificate. 

What is Montana’s SUTA wage base? 

Montana’s SUTA wage base is $43,000 per employee per year (2025). Verify at uid.dli.mt.gov. 

Does Montana have local payroll taxes? 

No. Montana does not impose local payroll taxes. 

What is Montana’s supplemental withholding rate? 

Montana uses the employee’s regular withholding rate for supplemental wages.