2026 tax year · Montana

Marketplace seller taxes in Montana

Etsy, eBay, Shopify and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in Montana that gap is worth $7,134 in tax.

Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 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$2,575
Federal income tax$67
Montana income tax$138
Total tax$2,780
Effective rate on gross6.2%

Earning more in Montana

A single filer taking the standard deduction, 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:

VolumeGrossMileage offTaxable profitMontana taxTotal taxRate on gross
Part-time $15,000 $0 $15,000 $0 $2,119 14.1%
Steady side income $45,000 $0 $45,000 $1,334 $9,914 22.0%
Full-time $72,000 $0 $72,000 $2,752 $17,555 24.4%

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.

Selling into and out of Montana

Income tax follows you: Montana taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.

On $18,225 of profit, what the states around Montana would charge:

StateIts taxvs Montana
North Dakota $0 −$199
South Dakota No income tax −$199
Wyoming No income tax −$199
Idaho $966 +$767

Marketplace seller tax questions in Montana

How much should a Montana seller set aside?

About 6.2% of gross on the $45,000 example, $2,780 across self-employment tax, federal income tax and $138 to Montana. Set aside from each payout rather than finding it in April.

Does the $45,000 on my 1099-NEC match what Montana taxes?

No. Montana taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the Montana bill is $138 rather than what gross alone would suggest.

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