How Much Does It Cost to Hire an Employee in Montana? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in Montana.
Hiring a $60,000/year employee in Montana costs employers approximately $66,277 total in 2026, including $6,277 in mandatory payroll taxes and workers' comp. That's a 1.1x multiplier on base salary.
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Total Cost at $60K Salary
$66,277
Cost multiplier: 1.1x
SUTA Rate (Mid)
1.6%
Wage base: $47,300
Workers' Comp Rate
1.48%
Has state income tax
Key Insight
For a $60,000 salary in Montana, employers pay $6,277 in mandatory taxes — a 1.1x cost multiplier. Montana's SUTA rate (1.6%) is below the national average of 1.70%.
Model your specific hire
Use our interactive calculator pre-loaded with Montana's tax rates. Adjust salary, benefits, and overhead to get your true cost.
Montana Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 0.13% – 6.3% |
| SUTA New Employer Rate (typical) | 1.6% |
| SUTA Wage Base | $47,300 |
| Workers' Compensation (avg) | 1.48% of payroll |
| State Income Tax | Yes |
Example Employer Costs in Montana
Mandatory employer taxes only (no benefits or overhead)
| Component | $40,000 Salary | $60,000 Salary | $80,000 Salary |
|---|---|---|---|
| Social Security (6.2%) | $2,480 | $3,720 | $4,960 |
| Medicare (1.45%) | $580 | $870 | $1,160 |
| FUTA | $42 | $42 | $42 |
| SUTA (MT) | $640 | $757 | $757 |
| Workers' Comp | $592 | $888 | $1,184 |
| Total Employer Taxes | $4,334 | $6,277 | $8,103 |
| Total Cost (salary + taxes) | $44,334 (1.11x) | $66,277 (1.1x) | $88,103 (1.1x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
Tax rates sourced from IRS Publication 15, SSA COLA notices, and Montana Department of Labor. Social Security tax is 6.2% of wages up to $184,500. Medicare is 1.45% with no wage cap. FUTA is 0.6% on the first $7,000 after credit.
How Montana Compares
Montana's typical SUTA rate of 1.6% is below the national average of ~1.70%. However, with a wage base of $47,300, which is well above the federal minimum of $7,000, the effective SUTA cost per employee can be significant.
Workers' compensation at 1.48% of payroll is above the national average of ~1.20%.
Montana Employer Environment
Below-average employer costs- State income tax applies — factor into total compensation packages
- SUTA rate 1.6% (wage base $47,300) — in line with national average
- Workers' comp rate 1.48% — near national average, varies by industry classification
Montana's overall employer tax burden is broadly in line with the national average. Review SUTA and workers' comp rates relative to your industry classification for a more precise picture.
Montana Employment Profile
Montana's high SUTA wage base of $47,300 creates a meaningful employer tax on higher-paid workers, balanced by above-average workers' compensation costs in its extraction industries.
healthcare, agriculture & ranching, tourism
Montana operates a state-run workers' compensation fund (State Fund); employers must insure through State Fund or qualify as self-insured, which limits market options.
Cost at Different Salary Levels in Montana
Total employer cost including all mandatory payroll taxes
Compare Montana With
Employee Costs in Other States
Hiring Cost by Industry in Montana
Workers' comp rates vary significantly by industry — restaurant and construction workers cost far more to insure than office staff.
Average Wages by Occupation in Montana
BLS OEWS 2024Median annual wages from the Bureau of Labor Statistics — use these as your baseline salary when estimating total hiring cost.
| Occupation Group | Median Annual | Employed |
|---|---|---|
| Management | $97,550 | 29,500 |
| Healthcare Practitioners and Technical | $79,850 | 31,790 |
| Computer and Mathematical | $79,100 | 9,640 |
| Architecture and Engineering | $78,980 | 8,290 |
| Legal | $74,330 | 4,220 |
| Business and Financial Operations | $70,620 | 29,350 |
| Life, Physical, and Social Science | $63,330 | 8,980 |
| Construction and Extraction | $59,200 | 33,670 |
States With Similar Hiring Costs
These states have SUTA rates close to Montana's 1.6% — good for cost benchmarking.
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Simplify Payroll in Montana
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