Montana paycheck calculator for hourly and salary pay 2025

Calculating paycheck in Montana

Here’s a step-by-step guide to walk you through the paycheck calculator:

1. Fill in the employee’s details 

This includes just two items: their name and the state where they live. This will help the tool calculate some of the employee’s local taxes.

2. Add the employee’s pay information

You should see fields that say pay type, pay rate, hours worked, pay date, and pay period. Start with “pay type” and select hourly or salary from the dropdown menu. 

If the employee is hourly, input their hourly wage under “pay rate” and fill in the number of hours they worked that pay period. If the employee worked more than 40 hours and thus accrued overtime, record 40 here and save the rest for “additional pay.”

If the employee is salaried, both the “pay rate” and “hours worked” fields will disappear. Instead, you’ll need to know how much the employee makes each pay period. You’ll put that into the field labeled “amount.” 

Then select the pay date and the employee’s pay frequency—for example, if you pay them weekly or every two weeks. 

3. Input any additional pay the employee receives

If the employee is salaried, you will only see two fields: bonus and commission. Fill in those amounts, if applicable.

If the employee is hourly, you should see four fields: overtime worked, bonus, commission, and salary. This is your opportunity to add in any additional pay they should receive this pay period. If the employee earned overtime, input the number of overtime hours they worked. The tool calculates overtime pay using time and a half.

4. Fill in the employee’s federal tax information

This includes the employee’s filing status, number of allowances, and additional withholdings. This is information you should be able to glean from the employee’s W-4 form. If you don’t yet have the employee’s W-4, the payroll calculator can fill in tax rates to help you create a semi-accurate paycheck estimate.

5. Fill in the employee’s state tax information

Again, this includes the employee’s filing status, number of allowances, and additional withholdings. This information can be taken from the employee’s state Form W-4. 

6. Calculate the employee’s paycheck

To see an estimate of the employee’s earnings for the pay period, select “calculate check.”

Montana income tax rate

Montana is among the states that made significant changes to their state income tax rules for tax year 2024. Like the majority of states, Montana retains a graduated state income tax system in which the tax rate increases with income level. For 2024, Montana has two tax brackets (reduced from seven) based on a taxpayer’s filing status and income. The lower rate is now 4.7% and the top marginal rate has been reduced to 5.9%. 

Beginning in 2024, federal taxable income will be used as the base for calculating Montana taxable income, with the same standard deduction. This will eliminate state income taxes for lower-income Montana workers and residents.

There are no additional local income taxes levied in Montana by cities or counties.

Montana tax withholdings

Every employer who pays Montana wages is subject to Montana wage withholding requirements. Montana wages typically include any wages paid to Montana residents or nonresident employees for work performed in Montana. 

In general, whenever federal wage withholding is required for Montana wages, state wage withholding is required as well. Wages that are exempt from federal wage withholding are generally also exempt from state wage withholding. 

State and federal law does provide exemptions from Montana wage withholding for certain employees, including:

• Nonresident spouses of U.S. military
• Residents of North Dakota, a state with which Montana has a reciprocity agreement
• Workers subject to the Interstate Commerce Commission laws
• Native Americans who are enrolled with their tribe and live and work on the reservation governed by their tribe
• Agricultural laborers

In Montana, employers pay the entire cost of the state unemployment insurance (SUI) tax, which provides benefits to qualified unemployed or underemployed workers during periods of unemployment through no fault of their own. The SUI tax rate is currently 0% to 6.12%, depending on the experience level of the business.

For specific information on how and where to register your business to submit state withholding and unemployment taxes in Montana, consult our payroll tax map.

In addition to Montana state income taxes, employers also have to consider federal tax withholdings. Money taken out for federal taxes goes toward federal income taxes, Social Security, and Medicare. An employee’s tax bracket depends on their gross income, excluding pre-tax deductions.

Employers are also responsible for making FUTA (Federal Unemployment Tax Act) payments. This is a federal unemployment tax and is separate from Montana’s state unemployment tax. It’s based on the wages you pay to employees but is NOT deducted from their wages. It must be paid by the business itself.

Opportunities for deductions on Montana paychecks

Aside from standard federal deductions, there are other common payroll deductions that you may need to apply if you offer benefits. Since employers subtract this income before taxes, these deductions can move employees to a lower tax bracket. 

Some common pre-tax deductions include: 

• Health insurance 
• Dental and vision benefits 
• Health savings account (HSA) 
• Wellness benefits
• Disability insurance 
• Life insurance 
• 401(k) contributions 
• Court-ordered garnishments, including child support, alimony, back taxes, and overdue loans 
• Commuter benefits

Note: Our paycheck calculator only accounts for federal and state deductions. Pre-tax deductions do not factor into our paycheck estimates. If you have questions about these deductions, talk to an accountant or payroll specialist. Montana has recently repealed a number of potential deductions, including for health insurance premiums paid by an employer for an employee, so it’s important to understand the new laws.

Frequently asked questions

What are payroll taxes?

Payroll taxes are taxes levied on employers and employees to fund a variety of state and federal programs, including Social Security, Medicare, unemployment benefits, education, defense, construction, and maintenance of infrastructure such as roads, parks, and first responder services. Employers must deduct employee contributions from their paychecks and send tax funds to the proper authorities.

How do I calculate taxes from my paycheck in Montana? 

Follow the steps in Calculating Paycheck in Montana to make sure your calculation reflects all the relevant factors, including standard annual deductions by marital status and the current Montana tax rate schedules, which are both subject to change from year to year. (Also, if you have a new pay rate, you can use this tool as a take-home pay calculator to estimate how much money you’ll actually be depositing each pay period.)

How can QuickBooks make Montana payroll easier?

QuickBooks has multiple features to make Montana payroll easier:

• Automation reduces tedious manual entries and frees up your time.
• QuickBooks calculates, files, and pays your payroll taxes for you—100% accurate tax calculations guaranteed.
• With tax penalty protection, you’re covered up to $25,000 if you receive a penalty for any reason.
• Your team can get paid fast with same-day direct deposit while you hold onto your cash longer.
• Time tracking can improve timesheet accuracy and streamline approvals.
• Seamless integration of processes can save you hours every week.
• With the Workforce app, your team can track their own hours and view their pay info and W-2s.

Flexible payroll plans for your business

QuickBooks offers flexible payroll plans tailored to your business needs. Whether you want to streamline payday, accurately track time, manage HR tasks, or provide benefits to your team, there's a payroll solution for your Montana business. 

Existing QuickBooks users can easily add payroll functionalities and leverage the QuickBooks Workforce app for enhanced employee management. Plus, with seamless time tracking and invoicing features, QuickBooks empowers you to stay organized and efficient. Explore QuickBooks payroll today.