Montana Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Montana state income tax as a freelancer or 1099 contractor. Montana has a progressive income tax with a top rate of 5.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$3,852
Total Tax Owed
$21,244

Summary

Total Income
$75,000
Total Taxes
-$21,244
After-Tax Income
$53,756
Effective Tax Rate(on total income)
28.3%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,311
Q2 (Apr-May)Due June 15
$5,311
Q3 (Jun-Aug)Due September 15
$5,311
Q4 (Sep-Dec)Due January 15 (next year)
$5,311
Each Quarterly Payment
$5,311

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,311. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Montana Tax Overview for Freelancers

Montana has a progressive income tax with a top rate of 5.9%. Montana has no state sales tax, which offsets some of the income tax burden. Self-employed individuals in Montana pay federal self-employment tax (15.3%) plus federal income tax, and Montana state income tax on their net self-employment earnings.

No state sales taxProgressive rates up to 5.9%No tax on Social SecurityLow population density

Self-Employment Taxes in Montana

If you work as a freelancer or independent contractor in Montana, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Montana state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Montana Income Tax for Freelancers

Montana has a progressive income tax with a top rate of 5.9%. Montana has no state sales tax, which offsets some of the income tax burden.

Cost of Living for Freelancers in Montana

Montana's cost of living is about 3% below the national average, though popular areas like Bozeman and Missoula are more expensive. As a freelancer in Montana, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Montana Freelancers

  • Montana has no sales tax — all purchases are tax-free at the state level
  • Montana's progressive rates top out at 5.9% which is moderate
  • Montana's low population density and natural beauty attract remote workers
  • Montana does not tax Social Security benefits

Key Montana Tax Features

  • No state sales tax
  • Progressive rates up to 5.9%
  • No tax on Social Security
  • Low population density

Model Your Montana Freelance Finances Over Time

This calculator shows your Montana tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Frequently Asked Questions

How is self-employment tax calculated in Montana?
Self-employed workers in Montana pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Montana state income tax. Montana has a progressive income tax with a top rate of 5.9%. Montana has no state sales tax, which offsets some of the income tax burden.
How much will I owe in quarterly taxes as a freelancer in Montana?
Your quarterly estimated tax payment in Montana depends on your total tax liability — including SE tax, federal income tax, and Montana state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Montana freelancers?
Freelancers in Montana can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Montana state taxable income, providing additional state tax savings.
Does Montana have any special taxes for self-employed workers?
Montana does not have a separate self-employment tax. However, your net self-employment income is subject to Montana's regular income tax (5.9% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Montana?
The decision to form an LLC or S-Corp in Montana depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Montana tax professional for advice specific to your situation.

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