For employers running payroll in Montana. Enter an employee's pay to see what to withhold, your 2026 employer taxes and the total cost of the
employee. Montana employers pay state unemployment tax on the first $47,300 of each employee's wages in 2026. A new employer starts at 1.18%, and experienced employers pay from 0.13% to 6.3% depending on their layoff history.
Per-paycheck figures are the year's total divided by 26 paychecks. FUTA and SUTA stop at their wage bases, so they come out of the first paychecks of the year (FUTA ends with paycheck 4, SUTA with paycheck 21).
Workers' compensation insurance and local payroll taxes are not included.
2026 estimate. Check the result against your payroll provider and your state rate notice.
Employer payroll taxes in Montana for 2026
On top of each paycheck, a Montana employer pays these taxes. None of them come out of the employee's pay. On a $60,000 salary they add
$5,190.14 a year, so the employee costs $65,190.14.
Employer tax
Rate
Wages taxed
Social Security
6.2%
First $184,500
Medicare
1.45%
No limit
Federal unemployment (FUTA)
0.6%
First $7,000
Montana unemployment (SUTA)
1.18% for new employers
First $47,300
Montana unemployment tax (SUTA)
Montana employers pay state unemployment tax on the first $47,300 of each employee's wages in 2026. A new employer starts at 1.18%, and experienced employers pay from 0.13% to 6.3% depending on their layoff history.
New employer rates depend on the industry, from 1% to 2% plus a 0.18% administrative tax. Most businesses pay 1.18%.
What an employee costs in Montana
Yearly employer taxes and total cost for a single filer paid every two weeks, at the new-employer unemployment rate, for an employer with
10 employees. Benefits and workers' compensation insurance are extra.
Salary
Employer taxes
Total cost
Added to pay
Employee take-home
$30,000
$2,691.00
$32,691
9%
$25,632
$40,000
$3,574.00
$43,574
8.9%
$33,197
$50,000
$4,425.14
$54,425
8.9%
$40,762
$60,000
$5,190.14
$65,190
8.7%
$48,327
$75,000
$6,337.64
$81,338
8.5%
$58,716
$100,000
$8,250.14
$108,250
8.3%
$74,891
$125,000
$10,162.64
$135,163
8.1%
$91,002
$150,000
$12,075.14
$162,075
8.1%
$106,677
Withholding from Montana paychecks
From the employee's pay you withhold federal income tax under the W-4, 6.2% Social Security, 1.45% Medicare
and Montana income tax.
Employees checking their own pay can use the Montana paycheck calculator. Running a bonus? Use the bonus payroll calculator.
Montana employer taxes compared with nearby states
The same $60,000 employee, at each state's new-employer unemployment rate.
Of the states that border Montana, Wyoming has the lowest employer taxes.
The 6.2% Social Security and 1.45% Medicare match, federal unemployment tax (FUTA) at 0.6% of the first $7,000, and Montana unemployment tax (SUTA), 1.18% for a new employer. On a $60,000 salary that comes to $5,190.14 a year.
What is the Montana SUTA rate for new employers in 2026?
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1.18% on the first $47,300 of each employee's wages. New employer rates depend on the industry, from 1% to 2% plus a 0.18% administrative tax. Most businesses pay 1.18%. Your own rate is on the notice the state sends each year, and it changes once you have a layoff history.
How much does it cost to employ someone making $60,000 in Montana?
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About $65,190 a year: the $60,000 salary plus $5,190.14 of employer payroll taxes, or 8.7% on top of pay. That assumes the new-employer unemployment rate and leaves out benefits and workers' compensation insurance.
What is the Montana unemployment wage base for 2026?
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$47,300. Unemployment tax stops once an employee's wages for the year pass it, so most of the tax is paid in the first months of the year.