Montana unemployment insurance sees tax rate reductions take effect
Governor Greg Gianforte’s administration announced significant tax rate reductions for unemployment insurance in Montana. These changes will directly impact over 32,000 businesses across the state, thanks to new legislation passed during the 2025 Montana legislative session.
Details of House Bill 210
House Bill 210 was sponsored by House Majority Leader Steve Fitzpatrick, a Republican from Great Falls. Governor Gianforte signed the bill into law in April during a ceremony in Helena. This legislation aims to reduce the financial burden on businesses related to unemployment insurance.
Impact on Businesses
- 32,873 employers will receive a 0.2% reduction in the unemployment insurance tax rate for 2026.
- More than 7,100 businesses will enjoy a zero-percent unemployment insurance tax rate.
- Overall, businesses are projected to save over $23 million due to these reductions.
The reductions were triggered because the unemployment relief fund maintained a robust balance of over $643 million as of April. This surplus has resulted from consistently low statewide unemployment rates over the past few years.
Statements from State Officials
Governor Gianforte emphasized the benefits of the tax code reform, stating, “By cutting back the thicket of red tape tying up job creators, we’re helping Montana businesses grow.” He highlighted the state’s favorable environment for starting and owning small businesses.
With these reforms, Montana aims to bolster business growth and job creation, reinforcing its position as a prime location for entrepreneurs and investors alike.
