2026 tax year · Montana
RSU tax in Montana
A $60,000 vest costs $3,390 in Montana tax on top of the federal bill. And the federal share withheld is $2,970 short.
What a $60,000 vest actually costs in Montana
A single filer already earning $180,000 in salary. The vest stacks on top of that, so it fills the highest brackets rather than starting at the bottom:
| Withheld by your employer at 22.0% | $13,200 |
| Federal tax the vest actually costs | $16,170 |
| Federal shortfall, owed in April | $2,970 |
| Montana income tax on the vest | $3,390 |
| Total still to find | $6,360 |
The withholding rate is flat, 22.0% below $1 million of supplemental pay. And takes no account of your salary. That is why the gap grows the more you earn.
The gap widens with salary
| Salary | Withheld | Actually owed | Shortfall | Montana tax |
|---|---|---|---|---|
| $90,000 | $13,200 | $13,764 | $564 | $3,390 |
| $160,000 | $13,200 | $14,570 | $1,370 | $3,390 |
| $260,000 | $13,200 | $20,630 | $7,430 | $3,390 |
How Montana treats a vest
Montana taxes a vest as ordinary income like any other wages, adding $3,390 on top of the federal bill for $60,000 of vesting stock.
If you moved during the vesting period, the income is split between the states you worked in across it: Days worked in each state / total days in vesting period x RSU income = each state's allocation That is worked out day by day, not by where you lived on the vesting date.
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 a vest.
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.
What the same vest costs around Montana
Total income of $240,000 in the states Montana borders:
| State | Its tax | vs Montana |
|---|---|---|
| South Dakota | No income tax | −$12,532 |
| Wyoming | No income tax | −$12,532 |
| North Dakota | $3,634 | −$8,898 |
| Idaho | $12,720 | +$189 |
- South Dakota has no income tax at all, so the same work done there costs $12,532 less in state tax than it does in Montana.
- Wyoming has no income tax at all, so the same work done there costs $12,532 less in state tax than it does in Montana.
- North Dakota would take $8,898 less, $3,634 against Montana's $12,532.
- Idaho would take $189 more, $12,720 against Montana's $12,532.
RSU questions in Montana
Should I sell at vest?
Selling immediately raises the cash for the $6,360 you still owe and leaves no capital gain, because the sale price equals the price you were already taxed on. Holding turns it into an investment decision, any further gain is a capital gain, and any fall is a loss you take on shares you were already taxed on at the higher value.
I moved to Montana mid-vest, who taxes it?
Both states, split by workdays. The income is allocated across the vesting period, not assigned to wherever you happened to live on the vesting date. The state you left can still claim its share, and California, New York and Massachusetts pursue it hardest.