Montana employer payroll tax calculator 2026
Hiring in Montana? New Montana employers pay 1.18% state unemployment tax on the first $47,300 of each employee's wages, on top of the federal 6.2% Social Security, 1.45% Medicare and FUTA. For a $60,000 employee that's about $5,190 a year in employer payroll taxes — $558.14 of it to Montana.
| Wages | $60,000.00 |
| Employer Social Security | $3,720.00 |
| Employer Medicare | $870.00 |
| FUTA (0.6% on $7,000.00) | $42.00 |
| State unemployment insurance (SUI) (1.18% on $47,300.00) | $558.14 |
| Employer payroll taxes | $5,190.14 |
| Total cost before benefits | $65,190.14 |
Per two-week payroll: $2,507.31. Add health insurance, retirement and workers' compensation in the cost of an employee calculator.
Montana unemployment tax (SUTA) for new employers
New-employer rates depend on industry: 1.18% for manufacturing, utilities and transportation, wholesale, retail and finance; 1.28% for services; 1.48% for agriculture and mining; 2.18% for construction and unclassified. The rate is 1.00% industry rate + 0.18% administrative fund tax.
After a few years the state assigns your own rate based on your layoff history; enter it in the calculator once you have it. Your rate also earns the usual federal FUTA credit: pay Montana on time and FUTA is 0.6% on the first $7,000. If Montana ends up a credit-reduction state for the year (the Department of Labor lists them each November), FUTA is higher.
Other Montana payroll programs
Montana has no state paid-leave or disability program with an employer share, and no other broad state payroll tax on employers.
What an employee costs in Montana
| Salary | Federal employer taxes | Montana employer taxes | Total cost | Taxes as % of pay |
|---|---|---|---|---|
| $40,000 | $3,102.00 | $472.00 | $43,574.00 | 8.9% |
| $60,000 | $4,632.00 | $558.14 | $65,190.14 | 8.7% |
| $100,000 | $7,692.00 | $558.14 | $108,250.14 | 8.3% |
A year, before benefits. New-employer rates, 5 employees, full FUTA credit.
How much does a $40,000 employee cost in Montana?
About $43,574 a year: the $40,000 salary plus $3,102.00 of federal employer taxes and $472.00 of Montana employer taxes, before benefits. That's $1,675.92 per two-week payroll.
How much does a $60,000 employee cost in Montana?
About $65,190 a year: the $60,000 salary plus $4,632.00 of federal employer taxes and $558.14 of Montana employer taxes, before benefits. That's $2,507.31 per two-week payroll.
How much does a $100,000 employee cost in Montana?
About $108,250 a year: the $100,000 salary plus $7,692.00 of federal employer taxes and $558.14 of Montana employer taxes, before benefits. That's $4,163.47 per two-week payroll.
Both halves of one paycheck
On a $60,000 salary paid every two weeks, the employee sees $11,664 a year taken out of pay — federal income tax, their own Social Security and Medicare and Montana taxes — and takes home $48,336 (single filer, standard W-4). That money is withheld from their wages, not an extra cost to you. On top of the salary, you pay $5,190.14 of employer taxes. See the employee's side line by line in the Montana paycheck calculator.
More employer tools
Cost of an employee (benefits and cost per hour) · Employer payroll tax calculator (all states) · Employer payroll taxes guide
Montana figures checked 2026-09-28 against the state's own publications. Planning estimate, not a payroll return: your rate notice and the state's rules decide the final amount.
Sources
- Montana DLI — UI contributions rate explanation (2026) — 2026 taxable wage base $47,300; new employer industry rates; administrative fund tax 0.18% (checked 2026-09-28)
- IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits; FUTA
- IRS — FUTA credit reduction — 6.0% FUTA on the first $7,000; usual 5.4% credit; credit-reduction states lose part of the credit
- U.S. Department of Labor — FUTA credit reductions — the list of credit-reduction states for each year (checked 2026-09-28)
Questions
What is the Montana SUTA rate for new employers?
1.18% in 2026 (1.00% industry rate + 0.18% administrative fund tax), on the first $47,300 of each employee's wages. New-employer rates depend on industry: 1.18% for manufacturing, utilities and transportation, wholesale, retail and finance; 1.28% for services; 1.48% for agriculture and mining; 2.18% for construction and unclassified.
What is the Montana unemployment tax wage base for 2026?
$47,300 per employee per year.
How much does it cost to employ someone for $60,000 in Montana?
About $65,190 a year before benefits: $4,632.00 of federal employer taxes and $558.14 for Montana, at the new-employer rate with 5 employees.