What are Montana's 2024 income tax brackets?

Montana reformed its income tax to two rates effective 2024: 4.7% applies to taxable income up to the bracket threshold (about 20,500 dollars single / 41,000 dollars married-jointly) and 5.9% applies above it. The old seven-bracket system was retired.

How does Montana define taxable income?

Montana's 2024 reform ties state taxable income closely to your federal taxable income, then applies a Montana standard deduction that mirrors the federal standard deduction. You can itemize instead if your deductions are larger.

Does Montana have local income taxes?

No. Montana has no city or county income taxes, so the state rate is the only income tax on your wages regardless of where in Montana you live.

What is the difference between effective and marginal rate?

Your marginal rate is the rate on your last dollar of income — 4.7% or 5.9%. Your effective rate is total tax divided by income, which is always lower because the first dollars are taxed at the lower rate.

Is this the same as my paycheck withholding?

Close, but withholding uses tables and assumptions that can over- or under-withhold. This calculator estimates your actual annual liability; your refund or balance due is the difference from what was withheld.

Montana Income Tax Calculator

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Montana overhauled its income tax for the 2024 tax year, replacing a seven-bracket system with a simpler two-rate structure: most income is taxed at 4.7%, and income above a threshold is taxed at 5.9%. This calculator applies those rates after Montana’s standard deduction to estimate your state income tax liability.

How it works

The calculation mirrors the Montana 2024 method:

Start from taxable income. Montana now ties state taxable income closely to your federal taxable income.
Subtract the standard deduction. Montana grants a standard deduction that mirrors the federal one (about $15,000 single, $30,000 married-jointly). If you itemize, enter that amount instead.
Apply the two rates. The first slice of taxable income up to the bracket threshold is taxed at 4.7%; everything above it is taxed at 5.9%. The threshold is roughly $20,500 for single filers and $41,000 for married filing jointly.

The result is your estimated Montana state income tax, shown with both your effective and marginal rates.

Tips and example

A single filer with $60,000 of income subtracts the $15,000 standard deduction to reach $45,000 of taxable income. The first $20,500 is taxed at 4.7% ($963.50) and the remaining $24,500 at 5.9% ($1,445.50), for a total of about $2,409 — an effective rate near 4.0% of total income.

Because Montana has no local income tax, this state figure is the complete picture for your Montana wages. To see your full take-home including federal tax and FICA, use the Montana Paycheck Calculator.