Quick answer
A single freelancer in Montana with $75,000 of profit pays about $2,577 of Montana income tax in 2026 on top of about $15,495 of federal tax (self-employment tax of 15.3% on 92.35% of profit plus income tax), keeping about $56,928. At $50,000 the state bill is about $1,427; at $100,000, about $3,890.
Montana cut its top income tax rate for 2026 and widened its lower bracket, so most freelancers now pay 4.7% on the bulk of their profit and 5.65% only on the top slice. Montana also has no general sales tax. The catch: the state starts from federal taxable income but doesn’t let you keep the federal QBI deduction. Here is what a Montana freelancer owes.
How Montana compares: in our 50-state take-home pay ranking, a single freelancer with $75,000 of profit keeps $56,928 in Montana after federal and state income tax, 30th of 51 (state income tax: $2,577).
Set aside from every payment
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That is $0 of every $1,000 you receive
- Federal income tax share
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- Self-employment tax share
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- State tax share
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- Total to save this year
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Estimate for information only — not tax, legal or financial advice. Federal figures for tax year 2026; state and local taxes are not included unless you enter them. Check your situation with a CPA or enrolled agent.
What you pay on freelance profit
| Tax | Rate |
|---|---|
| Federal self-employment tax | 15.3% on 92.35% of profit (12.4% part capped at $184,500 for 2026) |
| Federal income tax | 10%–37% |
| Montana income tax | 4.7% on the first $47,500 of taxable income (single), 5.65% above that, for 2026 |
| Montana sales tax | None (general sales tax) |
| City or county income tax | None |
Two brackets for 2026
House Bill 337, passed in 2025, changed Montana’s rates for 2026 and 2027. For 2026, the 4.7% bracket covers taxable income up to $47,500 for single filers and married filing separately, $71,250 for heads of household, and $95,000 for married couples filing jointly. Income above those amounts is taxed at 5.65%.
The law is already set for 2027: the top rate drops to 5.4%, and the 4.7% bracket widens to $65,000 for single filers ($97,500 head of household, $130,000 joint). Long-term capital gains keep their own lower rates of 3.0% and 4.1%.
Montana starts from federal taxable income, minus one break
Since Montana’s tax simplification took effect in 2024, your Montana return starts from federal taxable income, not counting the federal qualified business income (QBI) deduction. In practice that means:
- Schedule C expenses and the deduction for half of your self-employment tax reduce your Montana income, because they’re already built into federal AGI.
- You use the same deduction you took federally. For most freelancers that’s the federal standard deduction, $16,100 for single filers in 2026. Montana no longer has its own standard deduction or personal exemptions.
- The 20% QBI deduction that trims your federal tax does not carry over, so your Montana taxable income is higher than your federal taxable income.
Estimated payments
Montana expects quarterly estimated payments unless your tax for the year, after withholding and credits, will be under $500. For 2026 the due dates are April 15, June 15 and September 15, 2026, and January 15, 2027, moving to the next business day when a date falls on a weekend or holiday. To avoid underpayment interest, pay in at least 90% of this year’s tax or 100% of last year’s. You can pay online through the Department of Revenue’s TransAction Portal (TAP) or mail a check with the Form IT voucher.
Size the federal part with the quarterly estimated tax calculator and add a quarter of your expected Montana tax to each date.
No sales tax, and a cheap LLC
- Sales tax: Montana has no general sales tax, so most freelance services and products carry none at the state level. Narrower taxes still exist. If you rent out a room or vacation home short term, for example, Montana’s combined 8% lodging facility sales and use tax applies to stays under 30 days.
- LLC annual report: every Montana LLC files an annual report with the Secretary of State by April 15. The fee is currently waived if you file by the deadline, and it’s $35 if you file after April 15. Weighing an S corp election? It changes your federal self-employment tax, not Montana’s income tax rates.
How much to set aside
Enter 5.65 in the state field of the tax set-aside calculator if your Montana taxable income will be over $47,500, or 4.7 if it will stay below that. Because the federal standard deduction comes off first and the lower bracket covers most of your income, your real Montana cost runs lower than the top rate (about 3.6% of profit in the $85,000 example), so either figure builds in a cushion.
Frequently asked questions
What is Montana's income tax rate for freelancers in 2026?
For single filers, 4.7% on the first $47,500 of taxable income and 5.65% above that. For 2027 the top rate drops to 5.4% and the 4.7% bracket widens to $65,000 for single filers.
Does Montana allow the federal QBI deduction?
No. Montana starts from federal taxable income but doesn't count the federal 20% QBI deduction, so your Montana taxable income is higher than your federal taxable income. You do keep the federal standard deduction, $16,100 for single filers in 2026.
Does Montana have a sales tax on freelance services?
No. Montana has no general sales tax, so most freelance services and products carry none at the state level. Narrower taxes still exist, such as the 8% lodging facility sales and use tax on short-term stays under 30 days.
When are Montana estimated tax payments due?
April 15, June 15 and September 15, 2026, and January 15, 2027. Montana expects quarterly payments unless your tax after withholding and credits will be under $500. Paying 90% of this year's tax or 100% of last year's avoids underpayment interest.