What is the SUTA rate in Montana?

Montana's SUTA (State Unemployment Tax) rates range from 0.13% to 6.3%, with a typical new employer rate around 1.6%. The SUTA wage base is $40,500 per employee.

Does Montana have state income tax?

Yes, Montana has a state income tax. While this is paid by the employee (not the employer), it affects take-home pay and overall compensation planning.

What workers' compensation insurance costs in Montana?

The average workers' compensation rate in Montana is approximately 1.48% of payroll. For a $60,000 salary, that's about $888 per year. Rates vary significantly by industry and claims history.

How Much Does It Cost to Hire an Employee in Montana? (2026)

State-specific payroll taxes, workers' comp, and total employer costs in Montana.

Total Cost at $60K Salary

$66,168

Cost multiplier: 1.1x

SUTA Rate (Mid)

1.6%

Wage base: $40,500

Workers' Comp Rate

1.48%

Has state income tax

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	$40,500
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	$648	$648
Workers' Comp	$592	$888	$1,184
Total Employer Taxes	$4,334	$6,168	$7,994
Total Cost (salary + taxes)	$44,334 (1.11x)	$66,168 (1.1x)	$87,994 (1.1x)

These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.

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 $40,500, 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%.

Employee Costs in Other States

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