At a glance
- Corporate tax
- 6.75% (7% water’s edge), $50 minimum
- Tax on wages
- 4.7% / 5.65% (2026)
- Sales tax
- None (local resort taxes)
- Economic nexus
- No sales tax
- Minimum wage
- $10.85/hr
- UI wage base
- $47,300
- New-employer UI rate
- 1.00%–2.00% by industry + 0.18% AFT
- Paid leave program
- None
- Annual report
- Apr 15; fee waived if on time
2026 figures, each explained with its source on the area’s page. On top of the federal baseline.
Setup, in order
Register with the Secretary of State
Before transacting business in MontanaFile a Foreign Registration Statement for a profit corporation ($70) with the Secretary of State.
Open a withholding account
Before the first Montana payrollOpen a withholding account with the Department of Revenue through the TransAction Portal.
Open a UI account
Before the first Montana payrollRegister with DLI for unemployment insurance; new employers get their industry’s average rate plus the 0.18% AFT.
Get workers’ compensation coverage
Before the first employee startsElect Plan 1 (self-insurance), Plan 2 (private insurer) or Plan 3 (Montana State Fund).
Report new hires
Within 20 days of hireReport new and rehired employees to the state’s new hire program.
Put the probationary period in writing
Before the first Montana employee startsSet a probationary period in the offer letter and keep written personnel policies the company follows, because of the Wrongful Discharge from Employment Act.
File the annual report
By April 15 each yearFile the annual report with the Secretary of State; the fee is waived if filed on time.
The six areas
- AccountingAccounting and state tax in MontanaMontana taxes corporations at 6.75% (7% water’s edge) with a $50 minimum, apportions by receipts alone from 2025, and still allows a three-year NOL carryback.Corporate income tax6.75%
- ReceivablesReceivables and sales tax in MontanaMontana has no sales tax, so SaaS sold to Montana customers is untaxed at the register; Montana receipts matter through the receipts-only income tax apportionment.Sales taxNone
- PayablesPayables and contractors in MontanaMontana wants Forms 1099 on federal due dates, has no sales or use tax on purchases, and expects contractors to hold an Independent Contractor Exemption Certificate.1099-NEC due dateJan 31
- PayrollPayroll taxes and employer rules in MontanaMontana payroll is UI at an industry rate (1.10% for services) plus 0.18% AFT on $47,300, a $10.85 minimum wage, no paid leave premiums, and final pay that can be due immediately.Minimum wage$10.85 an hour
- ComplianceCompliance and filings in MontanaA Delaware corporation registers in Montana for $70, files a free annual report by April 15 each year, and files Form CIT by May 15 with a $50 minimum tax.Foreign registration$70
- AdvisoryAdvisory: credits and decisions in MontanaMontana is the one state where employees can’t be fired at will after probation; it has no R&D credit but credits half of employer FICA on new jobs through 2028.Individual income tax (2026)4.7% / 5.65%
Who you register with
- Montana Department of RevenueCorporate income tax, withholding, 1099s and unclaimed property
- Montana Department of Labor & Industry (DLI)Unemployment insurance, minimum wage, workers’ comp rules and contractor exemption certificates
- Montana Secretary of StateForeign registration and the April 15 annual report
- Montana DPHHS — Child Support ServicesNew-hire reporting
Hiring across the border
An employee who lives in one state and works in another is the most common way a startup ends up registered in two. These are Montana’s neighbors.
- IDIdahoFlat 5.3% taxes, close federal conformity, no tax on SaaS and no local payroll taxes
- NDNorth DakotaLow rates, a state-only workers’ comp fund and a sellable research credit
- SDSouth DakotaNo income tax at all, but sales tax on SaaS and services — the Wayfair state
- WYWyomingNo income taxes at all; a $60 license tax, state-fund workers’ comp and no tax on SaaS
Common questions
Can we carry back a Montana loss?
Yes, and it is unusual: Montana still allows a net operating loss from a tax period after 2017 to be carried back three years (up to $500,000 per period) as well as forward 10 years. A company that paid Montana tax in a good year and then loses money can recover some of it; the trade-off is a 10-year carryforward instead of the federal indefinite one.
Do we collect sales tax from Montana customers?
No. Montana has no general sales tax, so there is no seller’s permit, no economic nexus threshold and nothing to collect on SaaS or other sales to Montana customers. Local resort taxes in some communities apply to goods and services sold there, not to remote SaaS subscriptions.
Do we send 1099s to Montana?
Yes. Montana follows federal due dates for Forms 1099 without withholding — January 31 for 1099-NEC — filed with a federal Form 1096, and you don’t need a Montana withholding account if nothing was withheld. DOR is moving electronic submissions to the IRS IRIS XML format.
When is a final paycheck due in Montana?
When an employee quits, by the earlier of the next regular payday or 15 days. When the employer discharges for cause or lays someone off, immediately — unless the employer has a written personnel policy that extends it to the next regular payday or 15 days, whichever is first.
When is the Montana annual report due?
April 15 for every corporation, whatever month it registered. Filed on time the fee is waived; after April 15 it is $35, and a corporation that lets reports lapse pays $35 for each delinquent year to reinstate.
Can we fire a Montana employee at will?
No — Montana is the one state where employment is not at-will after a probationary period. Under the Wrongful Discharge from Employment Act, once an employee completes the probationary period (12 months if the employer sets none), a discharge without good cause is wrongful. Startups hiring in Montana should set the probationary period in writing before the start date.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- Montana DOR — Corporate income tax
- MCA 15-31-121 — Rate of tax, minimum tax
- MCA 15-31-119 — Net operating losses, carryovers and carrybacks
- MCA 15-30-2103 — Individual income tax rates
- Montana DOR — Sales tax guidance for Montana businesses and residents
- Montana DOR — Local resort tax
- Montana DOR — Forms 1099 without withholding due dates
- Montana DOR — North Dakota reciprocity agreement
- Montana DOR — Montana employer and information agent guide
- Montana DOR — Jobs Growth Incentive credit
- Montana DOR — Unclaimed property
- Montana DLI — UI contribution taxable wage base and rates for 2026
- Montana DLI — 2026 minimum wage poster
- Montana DLI — 2026 minimum wage determination letter
- Montana DLI — Independent Contractor Exemption Certificate (ICEC) program
- MCA 39-71-401 — Employers and employees covered by the Workers’ Compensation Act
- MCA 39-3-205 — Payment of wages on separation
- MCA 39-2-904 — Elements of wrongful discharge
- MCA 39-2-910 — Probationary period
- MCA 40-5-922 — New hire reporting
- Montana Secretary of State — Business services fees
- Montana Secretary of State — Business services
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.