2026 tax year · Montana
Delivery and rideshare driver taxes in Montana
DoorDash, Uber, Lyft and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is mileage, in Montana that gap is worth $3,881 in tax.
Take a driver who grossed $42,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the delivery and rideshare driver page $14,505 comes off and $27,495 is left as taxable profit. That profit is what Montana and the IRS charge against.
What that leaves you owing in Montana
Montana uses graduated 2026 income tax brackets topping out at 5.65%, across 2 brackets, on top of federal income tax and self-employment tax.
| Self-employment tax | $3,885 |
| Federal income tax | $756 |
| Montana income tax | $543 |
| Total tax | $5,184 |
| Effective rate on gross | 12.3% |
Earning more in Montana
A single filer taking the standard deduction, standard mileage method, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Montana tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time, a few evenings | $15,000 | $4,826 | $10,174 | $0 | $1,438 | 9.6% |
| Steady side income | $42,000 | $13,365 | $28,635 | $593 | $5,480 | 13.0% |
| Full-time dashing | $68,000 | $22,275 | $45,725 | $1,372 | $10,119 | 14.9% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Montana specifics that change the number
On the 2026 rate itself: top rate reduced from 5.9% in 2025. Essentially a flat tax with small lower bracket.
Montana is one of the twelve states that still taxes Social Security benefits, which matters if you are drawing benefits alongside self-employment income.
Montana is also one of five states with no general sales tax, so the total tax picture is lighter than the income tax line alone suggests.
Driving across a Montana line
Driving income is sourced to where the wheels were, not where you live. Take a fare or a delivery that ends in the next state and that state can claim the income earned inside it. Most drivers near a border never file the second return, the amounts are small and the platforms do not split earnings by state. But the obligation exists, and it is the state you drove INTO that would come asking.
On $27,495 of profit, what the states around Montana would charge:
| State | Its tax | vs Montana |
|---|---|---|
| North Dakota | $0 | −$634 |
| South Dakota | No income tax | −$634 |
| Wyoming | No income tax | −$634 |
| Idaho | $1,457 | +$823 |
- North Dakota would take $634 less, $0 against Montana's $634.
- South Dakota has no income tax at all, so the same work done there costs $634 less in state tax than it does in Montana.
- Wyoming has no income tax at all, so the same work done there costs $634 less in state tax than it does in Montana.
- Idaho would take $823 more, $1,457 against Montana's $634.
Delivery and rideshare driver tax questions in Montana
How much should a Montana driver set aside?
About 12.3% of gross on the $42,000 example, $5,184 across self-employment tax, federal income tax and $543 to Montana. Set aside from each payout rather than finding it in April.
Does the $42,000 on my 1099-NEC match what Montana taxes?
No. Montana taxes profit, not gross. After $14,505 of deductions the taxable figure is $27,495, so the Montana bill is $543 rather than what gross alone would suggest.