Montana Pay Stub Requirements & Payroll Taxes

Montana requires an itemized statement of deductions with every paycheck and has its own minimum wage — $10.85 for 2026, indexed to inflation, with no lower rate for tipped workers. Fired employees must be paid immediately, and an employer that withholds wages can owe a penalty of up to 110% of the amount. Its income tax has two rates for 2026, 4.7% and 5.65%.

It's a general guide, not legal or tax advice. For your specific situation, check the source links below or talk to a licensed payroll, tax, or employment-law professional.

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Is a pay stub required in Montana?

Montana employers must give each employee an itemized statement of deductions every time wages are paid. If a payment has no deductions, the employer must instead give a statement saying so.

Required on every wage statement — Mont. Code Ann. § 39-3-101:

State income tax withheld
Federal income tax withheld
Social Security (FICA) deductions
Any other deductions, itemized by amount

Penalty for non-compliance (Mont. Code Ann. § 39-3-206): Failure to pay wages as required (including related wage-payment violations) is a misdemeanor, and a civil penalty of up to 110% of the unpaid wages can be assessed against the employer, in addition to the wages owed.

How often must employees be paid?

Montana does not mandate a single fixed pay frequency for all employers by statute; employers may establish their own regular pay periods. If no pay period is established, the law presumes a semimonthly pay period. Earned wages generally cannot be withheld more than 10 business days after they are due and payable.

Source: Mont. Code Ann. § 39-3-204

Montana minimum wage

Montana's minimum wage is adjusted for inflation every January 1: $10.85 an hour for 2026, scheduled to rise to $11.20 on January 1, 2027.

$10.85 per hour statewide, effective January 1, 2026Montana has no tip credit, meal credit or training wage. A narrow exception lets small businesses not covered by the FLSA, with gross annual sales of $110,000 or less, pay $4.00 an hour.

Tipped employees must be paid the full $10.85 before tips.

Source: Mont. Code Ann. § 39-3-409; Montana Department of Labor and Industry

Overtime & double time

Montana requires time and a half for hours over 40 in a workweek. There is no daily overtime rule.

Trigger	Pay rate
Daily overtime	No daily overtime rule.
Weekly overtime	1.5× the regular rate for hours beyond 40 in a workweek.
7th consecutive workday	No seventh-consecutive-day rule.

Source: Mont. Code Ann. § 39-3-405

Meal & rest break requirements

Montana does not require meal breaks for private-sector employees. Where an employer gives a bona fide meal period with the employee relieved of duty, federal rules allow it to be unpaid.

Montana does not require rest breaks. Short breaks of about 5 to 20 minutes that an employer allows are paid time under federal law.

If a break is missed:No premium pay is owed for missed breaks.

Source: No Montana private-sector break statute; 29 C.F.R. §§ 785.18–785.19

Montana state income tax

Montana taxes wages under a graduated individual income tax. Under HB 337, tax year 2026 uses a simplified two-bracket structure: a lower rate on income up to a threshold and a higher rate above it (thresholds vary by filing status; scheduled to change again for tax year 2027).

2026 Single Filers

Taxable income	Rate
$0 – $47,500	4.7%
Over $47,500	5.65%

Thresholds differ by filing status: for 2026 the 4.7% bracket applies up to $47,500 (single), $71,250 (head of household), or $95,000 (married filing jointly); income above those amounts is taxed at 5.65%. Rates and thresholds are scheduled to change again for tax year 2027 (4.7%/5.4%).

Source: Mont. Code Ann. § 15-30-2103; Montana DOR summary of HB 337

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Vacation & paid time off (PTO)

Montana does not require paid vacation, but vacation an employee has earned under the employer's policy is treated as wages owed at separation.

Earned vacation pay is wages.

"Use-it-or-lose-it" policies:Set by policy for time not yet earned; vacation already earned is owed.

Paid out at termination?Yes for earned, unused vacation under the employer's policy.

Source: Mont. Code Ann. § 39-3-201; Montana Department of Labor and Industry

Final paycheck rules

Montana pays a fired or laid-off employee immediately, unless the employer has a written policy setting a later date. An employee who quits is paid by the next regular payday or within 15 calendar days, whichever comes first.

Situation	Final wages due
Fired or laid off	Immediately — or, under a written employer policy, by the next regular payday or within 15 days, whichever is earlier.
Quits or resigns	By the next regular payday or within 15 calendar days, whichever comes first.

Late final pay:An employer that fails to pay wages when due can be assessed a penalty of up to 110% of the unpaid wages.

Source: Mont. Code Ann. §§ 39-3-205, 39-3-206

Other Montana payroll taxes employers should know

Montana does not have a state disability insurance or paid-family-leave payroll tax. Employers pay state unemployment insurance (UI) contributions on wages, with the rate depending on the employer's experience rating and the annual rate schedule set by the Department of Labor and Industry.

Tax	Rate	Notes
Unemployment Insurance (employer-paid)	0.00%–6.12% (varies by rate schedule and employer experience rating)	Rate depends on assigned rate class and whether the employer is a new/deficit employer; wage base set annually at 80% of the state's prior average annual wage.

Source: Mont. Code Ann. Title 39, ch. 51; uid.dli.mt.gov Schedule of Contribution Rates

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Common questions about Montana pay stubs

Does Montana allow a lower wage for tipped employees?

No. Montana has no tip credit, so tipped employees must be paid the full $10.85 an hour before tips in 2026.

When is my last paycheck due in Montana?

Immediately if you are fired or laid off (or by the next payday or within 15 days if the employer has a written policy). If you quit, by the next regular payday or within 15 calendar days, whichever is first.

What must a Montana pay stub show?

An itemized statement of every deduction made from wages, given each time wages are paid. If nothing was deducted, the employer must give a statement saying so.

What is the penalty for unpaid wages in Montana?

Up to 110% of the unpaid amount, on top of the wages themselves.

Guides that go with this page

Montana's rules decide what has to appear on the stub. These cover what the figures on it actually mean, wherever you work.

What a pay stub is, line by line — Every section of a stub and what each figure means.
Gross pay vs. net pay — Why the amount that reaches your bank is a quarter smaller than your salary.
Final paycheck checklist — What to verify on your last stub before you lose access to the payroll system.
The extra 0.9% above $200,000 — Why your employer's withholding and what you actually owe can disagree.

Sources & references

Every figure on this page links back to the primary source below. State and federal payroll rules change — always confirm current-year figures directly with the agency before relying on exact dollar amounts.

Last checked: October 2026. See our editorial standards & sources for how these figures are verified.