Montana’s 2026 withholding methods include a lower highest tax rate following legislative changes in 2025, the state revenue department said Dec. 8.
The highest tax rate in the withholding methods decreased to 5.65% from 5.9% after HB 337 was passed, the department said in a news release. The percentage method’s tax brackets were also adjusted.
The department’s withholding guide now recommends that employees fill out a new Form MW-4, Montana Employee’s Withholding and Exemption Certificate, every year instead of only when their income changes or following life events. Additionally, employees who last filled out Form MW-4 in 2023 or ...
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