Montana payroll taxes

Montana state income tax: Progressive brackets. Employers withhold using your MT W-4 (MW-4) and current Montana tables.
Local income tax: Montana cities/counties do not levy wage-based local income taxes on employees.
FICA (federal): Social Security and Medicare—see details below.
Federal income tax (FIT): Withheld using IRS rules based on your Form W-4 elections.
State Unemployment Insurance (SUI): Employer-paid only; employees do not pay Montana UI from wages.
Pre-tax deductions: Traditional 401(k), HSA/FSA, Section 125 premiums may reduce taxable wages (FIT/state and sometimes FICA).
Post-tax deductions: Roth 401(k), garnishments, union dues, after-tax benefits reduce net pay after taxes.

How Your Montana Paycheck Works

Start with gross pay (salary for the period or hourly rate × hours; include overtime where due).
Subtract pre-tax items (401(k), HSA/FSA, cafeteria plans) to determine taxable wages.
Apply FICA (Social Security to the federal wage base; Medicare on all wages; Additional Medicare for high earners).
Calculate federal withholding using IRS methods and your W-4.
Calculate Montana state withholding using MW-4 and current state tables.
Employer separately pays Montana SUI—this does not reduce your net pay.
Subtract any post-tax deductions to reach net pay.

Montana unemployment insurance (SUI) — 10-year snapshot

Employees do not pay Montana UI. Employers contribute on a taxable wage base at new/employer-specific experience rates; verify your annual rate notice.

Year	Employee UI Rate	Employee Pays?	Employer Taxable Wage Base (note)	New Employer Rate (typ.)	Experienced Employer Rate Range (approx.)
2016	0%	No	Set annually by state	~2.0%–2.7%	~0.1%–6.5%
2017	0%	No	Set annually by state	~2.0%–2.7%	~0.1%–6.5%
2018	0%	No	Set annually by state	~2.0%–2.7%	~0.1%–6.7%
2019	0%	No	Set annually by state	~2.0%–2.7%	~0.1%–6.7%
2020	0%	No	Set annually by state	~2.0%–2.7%	~0.1%–7.1%
2021	0%	No	Set annually by state	~2.0%–2.7%	~0.1%–7.1%
2022	0%	No	Set annually by state	~2.0%–2.7%	~0.1%–7.3%
2023	0%	No	Set annually by state	~2.0%–2.7%	~0.1%–7.3%
2024	0%	No	Set annually by state	~2.0%–2.7%	~0.1%–7.5%
2025	0%	No	Set annually by state	~2.0%–2.7%	~0.1%–7.7%

Montana salary threshold

Montana follows federal FLSA white-collar rules. Exempt status requires meeting the current federal salary threshold and applicable duties tests. If either test is not met, overtime is due after 40 hours in a workweek.

Median Household Income — Montana (10 years, current dollars)

Illustrative nominal values showing trend; confirm with the latest American Community Survey for official statistics.

Year	Median Household Income
2015	$49,500
2016	$51,200
2017	$53,300
2018	$55,700
2019	$57,200
2020	$59,400
2021	$64,100
2022	$70,000
2023	$73,800
2024	$75,200

Montana Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the annual federal wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

Montana municipalities do not impose wage-based local income taxes on employee paychecks. Pay stubs list only federal withholding, Montana state income tax, FICA, and benefit or court-ordered deductions. Some local governments charge employer licenses or fees, but these are business costs and never deducted from employee wages under any ordinance.

Local income tax table (employee wage tax)

City/County	Local Income/Wage Tax	Notes
Statewide (Montana)	None	No city/county percentage-of-wages income tax on employees

Montana Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Most non-exempt employees earn 1.5× after 40 hours/week (no statewide daily overtime rule).
Minimum wage: Statewide minimum set by statute and adjusted periodically; check the rate effective for your pay period.
Pay frequency: Employers must set regular, established paydays (weekly/biweekly/semimonthly common) and pay on time; final-pay deadlines apply at separation.
Breaks/meals: Follow federal/state requirements; minors and certain industries may have additional rules.

Additional Montana forms

MW-4 (Montana W-4) — Employee’s Withholding and Exemption Certificate.
Withholding returns — Employer deposit schedule and annual reconciliation with W-2 filing.
UI Employer Registration & Rate Notice — Montana UI account setup and yearly rate assignment.
New Hire Reporting — Report hires/rehires within required timeframe.
Required workplace posters — Wage/hour, unemployment, safety, and federal postings.

FAQs — Montana Salary Paycheck Calculator

How do I use a Montana Salary Paycheck Calculator to estimate net pay?

Enter your gross pay and pay frequency, federal W-4 and Montana MW-4 elections, plus pre-/post-tax deductions. The calculator applies FICA, federal withholding, and Montana state withholding to show per-paycheck and annual take-home. Employer UI is separate and not deducted from wages.

Does any Montana city take a local income tax from my paycheck?

No. Montana cities and counties do not impose wage-based local income taxes. Your pay stub typically lists federal withholding, Montana state income tax, FICA, and benefit or court-ordered deductions.

Do Montana employees pay unemployment tax from wages?

No. Montana Unemployment Insurance is funded by employer contributions only. Employees will not see a state UI deduction line on their pay stubs.

What salary makes me exempt from overtime in Montana?

Montana follows federal FLSA rules. Exempt status requires meeting the current federal salary threshold and the applicable duties tests. Otherwise, overtime is due after 40 hours in a workweek.

How are bonuses and commissions taxed on a Montana paycheck?

They’re subject to federal supplemental wage methods, FICA, and Montana state withholding. There is no local wage tax. Enter bonuses as supplemental pay to apply correct withholding.

Which form changes my Montana state withholding?

Use MW-4 to set or update Montana withholding elections (filing status, allowances, extra amounts). Update after life events, address moves, or when you have multiple jobs.

Can I add a flat extra amount of Montana withholding?

Yes. Request an additional dollar amount on MW-4. Enter the same extra amount in the calculator to preview its impact on take-home and your year-end balance.

How do multiple jobs affect my Montana paycheck estimate?

Multiple jobs can increase total taxable income and marginal rates. Use the multiple-jobs steps on your federal W-4 and reflect combined income in the estimate to avoid under-withholding.

Does Montana tax pre-tax commuter, HSA, FSA, or 401(k) contributions?

Qualified pre-tax benefits reduce federal and Montana taxable wages when eligible. Enter them as pre-tax so the calculator lowers FIT/state withholding and sometimes FICA accordingly.

Are Roth 401(k) contributions pre-tax?

No. Roth 401(k) contributions are after-tax and do not reduce taxable wages today. Enter them as post-tax deductions; qualified withdrawals may be tax-free later.

How does the calculator treat overtime and shift differentials?

Input overtime hours and premium rates; the calculator adds them to gross pay and recalculates FICA, federal, and Montana withholding automatically.

What pay frequency should I choose?

Select your employer’s schedule (weekly, biweekly, semimonthly, monthly). The calculator prorates gross and withholdings per period and annualizes statutory limits like the Social Security wage base.

Why did my net change mid-year?

Crossing the Social Security wage base, changing benefits, receiving bonuses, or updating W-4/MW-4 can alter withholdings. Enter year-to-date wages so the calculator stops Social Security at the cap and continues Medicare.

How are tips handled in Montana?

Reported tips are taxable for FIT, FICA, and Montana state income tax. Include tip income to ensure accurate withholding and avoid a balance due at year-end.

Do student employees ever avoid FICA?

Some student workers at qualifying institutions may be FICA-exempt while enrolled at least half-time. If exempt, remove FICA for that job in the calculator for accurate net pay.

How are PTO cash-outs taxed?

PTO cash-outs are taxable wages subject to FIT, FICA, and Montana withholding. If paid separately, employers may use supplemental withholding; model as supplemental wages for precision.

How do I model imputed income (e.g., group-term life over $50,000)?

Add the imputed value to taxable wages without adding cash received. The calculator withholds taxes on the imputed amount while leaving cash unchanged for that portion.

Can I claim exempt from Montana withholding?

You may claim exempt on MW-4 only if you meet Montana’s criteria (e.g., no tax liability last year and none expected this year). Otherwise, use standard elections or add a flat extra amount.

Does Additional Medicare tax apply in Montana?

Yes—federally. Employees pay an extra 0.9% on wages above $200,000. Employers do not match it. The calculator adds it automatically if you exceed the threshold.

How do garnishments affect my paycheck?

Enter court-ordered amounts as post-tax deductions. The calculator subtracts them after taxes. Statutory limits and employer processing rules apply; consult the order’s instructions.

How can I project year-to-date totals and remaining taxes?

Run a YTD scenario for amounts already paid/withheld, then a forward-looking scenario for remaining periods. Combine results to forecast full-year totals and adjust withholding now if needed.

Does Montana have a state disability insurance (SDI) payroll deduction?

No. Montana does not have an SDI deduction; your paycheck will not show a state disability line item.

How are relocation reimbursements treated?

Most moving reimbursements are taxable unless a specific exclusion applies. Include taxable amounts as wages so the calculator applies FIT, FICA, and Montana state withholding appropriately.

Can the calculator handle nonresident or part-year scenarios?

Yes. Enter wages sourced to Montana for the applicable period and adjust residency status on MW-4. Your annual return will reconcile part-year or nonresident allocations.

What if part of my work is performed remotely outside Montana?

Withholding generally follows where wages are sourced. Coordinate with payroll to reflect out-of-state workdays; your Montana return may allocate income across states.

Are charitable payroll deductions pre-tax?

Typically no; they are post-tax and do not reduce taxable wages for withholding. Any deduction benefits are reconciled on your tax return, not via payroll.

How do commuter/transit and parking benefits affect taxes?

Qualified commuter benefits reduce federal and Montana taxable wages up to federal limits. Enter as pre-tax to reduce withholding; amounts over limits are taxable.

How are severance payments handled?

Severance is taxable and generally subject to FIT, FICA, and Montana withholding. If paid separately, employers may use supplemental methods; model as supplemental wages for accuracy.

Can I simulate switching from traditional 401(k) to Roth?

Yes. Run one scenario with traditional (pre-tax) and another with Roth (post-tax) contributions to compare immediate take-home versus long-term tax considerations.

How do I reflect a mid-year raise or promotion?

Model two periods—old rate for checks already paid and new rate for remaining checks—then combine results to project full-year withholding and net pay.

What if I receive taxable awards or prizes?

Cash awards are taxable wages; non-cash awards are imputed at fair market value. Add to taxable wages so the calculator withholds FIT, FICA, and Montana taxes properly.

Why is my net different from a coworker with the same salary?

Differences in W-4/MW-4 elections, pre-tax benefits, Roth vs. traditional choices, supplemental wage timing, garnishments, and YTD caps (like Social Security) can produce different net pay amounts.

Montana Salary Paycheck Calculator