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Montana simplified its income tax to a 2-bracket system in 2024 (4.7%/5.9%). Important: Montana is NOT a standard at-will state — the WDEA requires good cause for termination after probation. Rippling handles MT DOR and DLI filings.
Montana is a Rocky Mountain economy with strengths in agriculture, energy, tourism, and growing technology driven by remote work migration and Montana State University talent. Montana simplified its income tax in 2024 (4.7%/5.9% 2-bracket) and has no state sales tax. Montana’s WDEA makes it the only state that is not purely at-will after an employee’s probationary period. Bozeman is the primary and fastest-growing tech market.
Rippling’s Montana payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| MT SUI (DLI) | New employer 1.0% | On first $43,000 of wages (2024) |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Mandatory |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| Montana State Income Tax | 4.7%–5.9% | 2-bracket; 4.7% up to $20,500; 5.9% above (2024 simplified system) |
| Montana Income (Single, 2024) | MT Rate |
|---|---|
| Up to $20,500 | 4.7% |
| Above $20,500 | 5.9% |
MT withholding remitted to MT DOR. Annual MW-3 reconciliation.
Final Pay: Montana requires final pay within 4 business days. WDEA: After the probationary period, employees can only be terminated for good cause — Montana is the only state with this statutory protection. Accrued vacation: MT Wage Payment Act treats promised vacation as wages.
Montana simplified its income tax to a 2-bracket system in 2024: 4.7% on income up to $20,500 and 5.9% above (single). Prior to 2024, Montana had a 7-bracket system with a top rate of 6.75%. Rippling applies the current Montana withholding tables.
Montana’s Wrongful Discharge from Employment Act (WDEA) means that after a probationary period (typically 6 months), employees can only be terminated for “good cause.” This is Montana’s significant departure from at-will employment. Employers must document performance issues and have legitimate business reasons for terminations.
Montana’s minimum wage is $10.30/hour (January 2024), indexed annually to CPI. Montana has its own minimum above the federal floor.
Montana is the only state in the US with no general sales tax. This affects compensation benchmarking — employees’ net purchasing power is higher in Montana, which can partially offset its moderate income tax rates. Bozeman has emerged as a major tech and remote work hub.
