No Tax on Tips Calculator for Montana (2026)
Calculate how much Montana workers save now that tips are deductible from federal taxable income (caps and income limits apply) under the OBBBA.
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Your Annual Tax Savings in Montana
Tips Tax Deduction in Montana
Under the One Big Beautiful Bill Act (OBBBA), workers in Montana who earn tips can deduct 100% of their tip income from federal income tax for tax years 2025 through 2028.
Montana Minimum Wage for Tipped Workers
The minimum wage in Montana is $10.55/hour. Montana does not allow a lower tipped minimum wage — all workers receive the full minimum wage regardless of tip income.
Top Tipped Industries in Montana
- Restaurant servers
- Bartenders
- Ski resort staff
- Fishing guides
Does Montana Tax Tips? (State Conformity)
Montana has no state income tax, so combined with the federal tip tax deduction, tipped workers in Montana pay no income tax at all on their tips. Only FICA taxes (Social Security and Medicare) still apply.
How the No Tax on Tips Law Works
What Qualifies
- Cash tips received directly from customers
- Credit/debit card tips
- Tips from tip pools or tip sharing
- Service charges distributed as tips
What Doesn't Change
- FICA taxes still apply: You still pay 6.2% Social Security + 1.45% Medicare on tip income
- Tips must still be reported: Report all tips to your employer and on your tax return
- Annual cap: Deduction limited to $25,000 per year in tip income
- Income limit: The deduction applies to workers earning less than $150,000/year (single) or $300,000 (married filing jointly)
Overtime Tax Deduction in Montana (2026)
The same OBBBA Schedule 1-A rules apply nationwide: only the FLSA overtime premium (the half of time-and-a-half) is deductible, up to $12,500 ($25,000 joint), with MAGI phase-outs. Montana state income tax may still apply to overtime wages even when the federal premium deduction is available.
Use the free Overtime Tax Calculator to estimate federal savings for Montana workers — including common searches like “montana overtime tax calculator.”
Federal Calculators
Compare with the federal-level tools: Tip Tax Savings (Federal) | Overtime Tax Calculator (Federal)