Self-employed in Montana: taxes and retirement for 2026
What consultants, freelancers, content creators, entrepreneurs, gig workers, tipped workers and tradespeople in Montana need to know this year: Montana income and estimated tax rules, and how to save for retirement without an employer plan.
Guides for Montana
Montana rules that apply
- State income tax (2026)
- Montana has a graduated state income tax for 2026: 4.7% to 5.65% (top rate starts at $47,500 for single filers). Under HB 337 (2025), single filers pay 4.7% on taxable income up to $47,500 and 5.65% above it. The breakpoint is $95,000 for joint filers and $71,250 for heads of household. For 2027, the 4.7% bracket widens to $65,000 (single) and the top rate drops to 5.4%. Long-term capital gains stay at 3.0%/4.1%.
- State estimated tax
- You must make estimated payments if you expect to owe $500 or more in Montana income tax after withholding and credits, for example from self-employment income. Same dates as federal (April 15, June 15, September 15, January 15). Form Form IT (Montana Individual Income Tax Payment Voucher) or online via TAP.
- Minimum wage (2026)
- $10.85 an hour; no tip credit, so tipped workers get the full minimum before tips. Tipped workers must get the full minimum wage because Montana allows no tip credit, meal credit, or training wage. Businesses not covered by the FLSA with $110,000 or less in gross annual sales may pay $4.00, unless an individual worker is FLSA-covered. The wage is adjusted for inflation each year; the department must set the next rate by September 30 each year, but no 2027 rate was posted on the DLI page when checked on October 7, 2026. The $10.85 rate took effect January 1, 2026 (DLI determination letter dated September 23, 2025).
- Independent contractor test and Independent Contractor Exemption Certificate (ICEC) program
- To be an independent contractor in Montana, a worker must be free from control or direction, run their own independently established business, and either hold an ICEC or carry self-elected workers' compensation coverage. The ICEC costs a non-refundable $125, no test is required, and violations can bring fines of up to $5,000.
- ICEC requirements and effect (MCA 39-71-417)
- Sole proprietors, partners, and LLC members who regularly work away from their own fixed business location (including in construction) must get an ICEC unless they elect workers' comp coverage. The certificate lasts 2 years. Holders are conclusively presumed to be independent contractors and give up workers' comp benefits unless they elected coverage.
Questions
Do self-employed people in Montana pay state income tax?
Montana has a graduated state income tax for 2026: 4.7% to 5.65% (top rate starts at $47,500 for single filers). Under HB 337 (2025), single filers pay 4.7% on taxable income up to $47,500 and 5.65% above it. The breakpoint is $95,000 for joint filers and $71,250 for heads of household. For 2027, the 4.7% bracket widens to $65,000 (single) and the top rate drops to 5.4%. Long-term capital gains stay at 3.0%/4.1%.
When are Montana estimated tax payments due for 2026?
You must make estimated payments if you expect to owe $500 or more in Montana income tax after withholding and credits, for example from self-employment income. Same dates as federal (April 15, June 15, September 15, January 15). The state form is Form IT (Montana Individual Income Tax Payment Voucher) or online via TAP.
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- revenue.mt.gov/news/recent-news/HB-337
- revenue.mt.gov/taxes/estimated-tax-payments
- erd.dli.mt.gov/labor-standards/wage-and-hour-payment-act/state-minimum-wage
- erd.dli.mt.gov/work-comp-regulations/montana-contractor/independent-contractor
- mca.legmt.gov/bills/mca/title_0390/chapter_0710/part_0040/section_0170/0390-0710-0040-0170.html
Facts researched from official sources and independently re-checked; last verified October 2026, next scheduled review 2027-01-02. Educational information for 2026, not tax, legal or investment advice. Rules change; check the official sources listed and a tax professional for your situation. Gigaverse AI, Inc. is a financial technology company, not a bank, and not itself a registered investment adviser or broker-dealer.