Estimate your quarterly taxes as a self-employed worker in Billings for 2026, including self-employment tax, federal income tax, and Montana state income tax.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Billings freelancers pay federal self-employment tax, federal income tax, and Montana state income tax (4.7% to 5.9%). Montana has no sales tax, joining Alaska, Delaware, New Hampshire, and Oregon. The state simplified its income tax to two brackets in 2024. Montana also has no local option sales taxes.
| Tax Component | Rate / Detail (2026) |
|---|---|
| Self-Employment Tax | 15.3% on 92.35% of net profit |
| Social Security portion | 12.4% on first $176,100 |
| Medicare portion | 2.9% (no cap) |
| SE Tax Deduction | Deduct half of SE tax from income |
| Federal Standard Deduction (Single) | $15,000 |
| Montana State Income Tax | 4.7% to 5.9% |
| Billings Local Income Tax | None |
| Quarterly Due Dates | April 15, June 16, September 15, January 15 |
Billings is the largest city in Montana and the commercial and healthcare hub of the region, with an economy built on energy and oil refining, agriculture, two major regional medical centers, and its role as a trade center for the northern Rockies and high plains.
| Local Metric | Billings (2026 estimate) |
|---|---|
| Metro population | 120,000 |
| County / jurisdiction | Yellowstone County |
| Cost of living index (US avg = 100) | 96 |
| MIT living wage, single adult | $19.50/hour |
| MIT living wage, one earner supporting a family of four | $39.50/hour |
| Applicable minimum wage | $10.55/hour |
| Average rent, 1-bedroom | $1,050/month |
| Average rent, 2-bedroom | $1,300/month |
| Median home price | $380,000 |
| Median household income | $65,000/year |
| Combined sales tax rate | 0% |
| Effective property tax rate | 0.85% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
If you expect to owe at least $1,000 in federal tax, you generally must pay quarterly. This covers freelancers, contractors, sole proprietors, and LLC members in Billings. Montana also requires state estimated payments if you expect to owe $500 or more in state income tax.
Federal estimated taxes are due April 15, June 16, September 15, and January 15. Montana uses the same quarterly schedule as the IRS for its state estimated payments.
A common rule is 25% to 35% of net profit. Because Montana adds state income tax (4.7% to 5.9%) on top of federal taxes, Billings freelancers often set aside toward the higher end. Use the calculator above for your numbers.
The self-employment tax rate is 15.3% (12.4% Social Security up to $176,100 of net earnings, plus 2.9% Medicare with no cap). It applies to 92.35% of net profit, and half of it is deductible against income tax.
Billings does not levy a local personal income tax. Your estimated payments cover federal taxes and Montana state income tax.