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Montana Payroll Taxes for Employers (2026): SUTA and State Programs

Last updated: 2026-10-12 · 2026 rates checked against Montana DLI Unemployment Insurance's own pages and the other official sources below

Montana employers pay state unemployment tax (SUTA) on the first $47,300 of each employee's wages in 2026, and new employers pay 1.28% — at most $605.44 per employee for the year. Every Montana employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).

SUTA wage base
$47,300
per employee, 2026
New-employer rate
1.28%
2026
New-employer max
$605.44
SUTA per employee per year
FUTA
0.6%
$42 per employee

What will payroll taxes cost me in Montana?

Enter your headcount and average pay to see the employer's share of Montana and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.

Montana employer payroll tax estimator · 2026

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1.28% is the 2026 new-employer rate. Enter your assigned rate once you have one.
Estimated annual employer payroll taxes
TaxPer year
Montana unemployment (SUTA)
1.28% × first $47,300 per employee
$3,027
Federal unemployment (FUTA)
0.6% × first $7,000 after the full state credit
$210
Social Security (employer half)
6.2% × first $184,500
$15,500
Medicare (employer half)
1.45% of all wages
$3,625
Total employer taxes$22,362
Per employee$4,472

Assumes every employee earns the average and works in Montana all year. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.

Montana unemployment insurance tax (SUTA) in 2026

2026 taxable wage base
$47,300 per employee (7th highest of 51)
New-employer rate
1.28%
How the new-employer rate works
New employers get their industry's average rate plus 0.18% Administrative Fund Tax: services 1.10% (1.28% total), retail/manufacturing/finance 1.00% (1.18%), construction 2.00% (2.18%).
Most a new employer pays per employee
$605.44 (1.28% × $47,300)
Experience-rated range (2026, as published)
0% to 6.12%
2025 average employer rate
1.16% of taxable wages (U.S. DOL)
Employee contribution
None — employer-paid only
Agency
Montana DLI Unemployment Insurance

Register with Montana DLI Unemployment Insurance when you first pay wages in Montana; you get an account number for quarterly wage reports and tax payments.

Federal payroll taxes every Montana employer pays

  • Social Security: 6.2% from you and 6.2% withheld from the employee, on wages up to $184,500 in 2026.
  • Medicare: 1.45% each on all wages; withhold an extra 0.9% (employee only) on wages over $200,000.
  • FUTA: 6.0% of the first $7,000 per employee, less up to 5.4% credit for Montana unemployment tax paid on time = 0.6%, or $42 per employee.
  • Federal income tax withholding from each paycheck based on the employee's Form W-4.

Next for Montana employers: Montana paycheck calculator (employee withholding) · Montana new hire reporting · Montana payday & final paycheck rules · Montana workers' comp · full payroll cost calculator

Montana payroll tax FAQ

What is the Montana SUTA rate for new employers in 2026?

1.28%. New employers get their industry's average rate plus 0.18% Administrative Fund Tax: services 1.10% (1.28% total), retail/manufacturing/finance 1.00% (1.18%), construction 2.00% (2.18%).

What is the Montana SUTA wage base for 2026?

$47,300 per employee. Once an employee's 2026 wages pass that amount, you stop paying Montana unemployment tax on them for the rest of the year. That is the 7th highest wage base of the 50 states and DC (the federal FUTA base is $7,000).

Do employees pay unemployment tax in Montana?

No. In Montana unemployment tax is paid only by the employer; it can't be deducted from pay. Only Alaska, New Jersey and Pennsylvania collect an employee share.

What other payroll taxes do Montana employers pay?

For 2026, Montana has no statewide paid-leave or disability payroll tax, so the state-level employer tax is unemployment insurance. You still withhold any state income tax from employees' pay.

How much FUTA do Montana employers pay?

0.6% of the first $7,000 of each employee's wages — $42 per employee per year — after the full 5.4% credit for paying Montana unemployment tax on time. Montana is not a credit-reduction state for 2026.

How does my Montana SUTA rate change after the first years?

New employers keep the new-employer rate until they have enough history to be experience-rated (the timing is set by state law). After that, Montana DLI Unemployment Insurance assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 0% to 6.12%. Use the rate on your annual rate notice. The 2025 average employer rate in Montana was 1.16% of taxable wages.

Official Sources

Figures checked against these sources on 2026-10-12

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General information, not tax advice. Rates change every year; confirm yours on the notice from Montana DLI Unemployment Insurance before filing.