Self-employed taxes and LLC costs in Montana, 2026
Montana taxes business profit with only two brackets in 2026, starting from the federal taxable income already on your return.
Total tax on this income in 2026
$20,192
Put aside 24% of each payment · $5,048 per quarter
| Self-employment tax (15.3%) | $12,010 |
| Federal income tax | $5,790 |
| Montana income tax | $2,392 |
| QBI deduction used | $12,579 |
| Effective rate on all income | 23.8% |
With an S corp election and a $34,000 salary, about $3,483 less tax (check it).
Computed by Radif Partners from IRS and Montana agency documents read on October 15, 2026 · How we calculate
Montana has just two income tax rates for 2026: 4.7 % on the first $47,500 of Montana taxable income for a single filer ($95,000 joint) and 5.65 % on the rest. The calculation starts from federal taxable income, so the federal standard deduction and the QBI deduction already shrink the base before Montana applies its rates. A single freelancer with $75,000 of profit owes about $2,015 to Montana and $17,510 in all with self-employment tax and federal income tax, which is $4,378 per quarterly payment. At $120,000 of profit, the state share is $3,862. Montana follows the federal S election and adds no tax on the corporation, so with a $50,000 salary the election saves about $4,811 a year on $120,000 of profit before your own fee quotes. The LLC filing and annual report fees are set by Secretary of State rule and could not be read on an official page today.
Montana at a glance, 2026
| LLC filing fee | not verified |
| Annual Report | not verified |
| Income tax | 4.7 % to 5.65 % |
| S corporation election | followed by the state |
| Tax on $75,000 of profit (single) | $17,510 in all, $2,015 to Montana |
The two-rate schedule Montana uses for 2026 sits in a temporary version of the tax statute that ends on December 31, 2026 (MCA 15-30-2103), so the brackets on this page are a one-year picture. For a sole owner, the practical effect is simple: every dollar of taxable income above $47,500 is taxed at 5.65 %, and below it at 4.7 %. There is no Montana standard deduction to subtract on top, because Montana taxable income is defined as federal taxable income with adjustments (MCA 15-30-2101).
The same profit in another state
Montana minus Wyoming
$3,022
| Montana | $3,022 |
| Wyoming | $0 |
Why the federal return does half the work
Because Montana begins where Form 1040 ends, the deductions that lower your federal bill lower the Montana bill in the same stroke. Half of self-employment tax, the self-employed health insurance deduction, SEP or solo 401(k) contributions and the 20% QBI deduction all come off before the state rate applies. A designer clearing $60,000 pays about $1,491 to the state; one clearing $200,000 pays about $7,223, still under 3.611 % of profit. The state income tax comparison puts these figures beside the other states.
Montana asks for quarterly estimates when you expect to owe more than $500 of state tax for the year, on the same four dates as the IRS (Montana DOR, estimated tax payments). Self-employment tax is a federal matter only, so the state installment covers income tax alone.
Forming and keeping a Montana LLC
An LLC is created by filing Articles of Organization with the Secretary of State. The statute lets the Secretary set the fees by rule rather than writing them into law (MCA 35-8-211), and the Secretary's fee pages could not be opened today, so this page gives no fee figure: confirm it on the Secretary of State site before you file. The first annual report is due between January 1 and April 15 of the year after the company was organized, then every year in the same window (MCA 35-8-208). Montana has no franchise tax and no minimum tax on LLCs. Our LLC cost by state page compares the recurring bill elsewhere.
S corporations and the entity-level option
An S corporation passes its income to the owners' returns with no Montana tax on the company itself. Since 2023 a partnership or S corporation can instead elect to pay Montana tax at the entity level, at the highest individual rate, 5.65 % for 2026, on the owners' share of Montana income (MCA 15-30-3326). The usual reason is the federal cap on deducting state taxes, which an entity-level payment sidesteps. For a one-person business near the bottom bracket, paying the top rate on all of it can cost more than it saves, which is a question for a CPA rather than a rule of thumb. The LLC vs S corp calculator shows the payroll side of the election with Montana selected.
Montana income tax brackets
| Taxable income, single | Rate | Taxable income, joint | Rate |
|---|---|---|---|
| $0 to $47,500 | 4.7 % | $0 to $95,000 | 4.7 % |
| over $47,500 | 5.65 % | over $95,000 | 5.65 % |