Montana Income Tax Calculator 2026

Estimates for single filers using 2026 IRS rates and $16,100 standard deduction. Does not include credits, itemized deductions, or additional income sources.

Montana State Income Tax Overview

Montana collects state income tax from residents on wages, salaries, and other forms of taxable income. No sales tax — income tax up to 5.9%. The state income tax is calculated on your taxable income — your gross income minus above-the-line deductions and the standard or itemized deduction. For 2026, Montana residents use the federal standard deduction of $16,100 (single) or $32,200 (married filing jointly) to reduce taxable income before the state tax rate applies. The Montana state income tax is in addition to federal income tax and FICA taxes, which all US workers pay.

Federal Income Tax for Montana Residents in 2026

All Montana residents pay the same federal income taxes as workers in every other state. The 2026 federal tax brackets are progressive, ranging from 10% on the first $11,925 of taxable income (single) up to 37% on income above $626,350. The federal standard deduction is $16,100 for single filers and $32,200 for married filing jointly in 2026 — increased from 2025 due to inflation adjustments. For a single Montana resident earning $75,000, federal income tax is approximately $7,872 per year after taking the standard deduction. This is identical regardless of which state you live in.

2026 One Big Beautiful Bill Changes Affecting Montana Residents

The One Big Beautiful Bill Act (OBBBA), signed in July 2025, made several tax changes that benefit Montana residents in 2026. Key changes include: tip income is now deductible up to $25,000 for service workers, overtime pay is deductible up to $12,500 (single filers), workers 65 and older receive a $6,000 senior deduction, car loan interest on US-manufactured vehicles is deductible up to $10,000, and the Child Tax Credit increased to $2,200 per qualifying child. The SALT deduction cap was also raised to $40,000 for households earning under $500,000, which benefits Montana residents who itemize and pay significant state and local taxes.

How Filing Status Affects Your Montana Tax Bill

Your federal filing status — single, married filing jointly, married filing separately, or head of household — significantly impacts your tax bill. Married Montana couples filing jointly benefit from wider tax brackets and a $32,200 standard deduction (double the single amount). For example, a married Montana couple each earning $60,000 ($120,000 combined) filing jointly pays approximately $14,230 in federal income tax versus $10,059if both filed as single. The "marriage bonus" or "marriage penalty" depends on the relative income of each spouse — our calculator shows the exact difference for your specific situation.

Key Deductions and Credits for Montana Taxpayers

Montana residents can reduce their federal tax bill through several strategies. Above-the-line deductions — including 401(k) contributions (up to $24,500), Traditional IRA contributions (up to $7,000), HSA contributions, and student loan interest — reduce your adjusted gross income before the standard deduction applies. The Child Tax Credit of $2,200 per qualifying child under 17 directly reduces your tax bill dollar-for-dollar. The Earned Income Credit benefits lower and middle-income Montana workers. Tax credits are more valuable than deductions: a $2,200 credit saves $2,200 in taxes, while a $2,200 deduction in the 22% bracket saves only $484.

Will You Get a Refund or Owe Taxes in Montana?

Whether you receive a federal tax refund or owe taxes depends entirely on how much was withheld from your Montana paychecks throughout the year. If your employer withheld more than your actual tax liability, you receive the difference as a refund. If too little was withheld, you owe the difference plus potential underpayment penalties. Most Montana W-2 employees who complete their W-4 accurately will receive a modest refund or owe a small amount. Self-employed Montana residents must make quarterly estimated payments to avoid penalties — our self-employment tax calculator can help estimate your quarterly payment amounts.