PHONE (406) 444-3834 
                                                                                      Montana Relay (TDD): 711 
                                                                                          uieservices@mt.gov 
                                                                                                                         
             Unemployment Insurance Contribution Taxable Wage Base & Rates for 2025 
  
 What is Montana’s 2025 Taxable Wage Base?  
  
 The taxable wage base for 2025 is $45,100 which is 80% of the 2023 average annual wage in Montana ($56,393.42) 
 rounded to the nearest $100. 
  
 How is Montana’s Rate Schedule determined each year? 
 
 Unemployment Insurance (UI) rates are based on the Schedule of Contribution Rates in effect for the year and the 
 individual employer’s experience rating history. The Rate Schedule determines the range of contribution rates 
 assigned to employers. The Rate Schedule is determined by the ratio of the UI Trust Fund balance on October 31, 
 2023, to total covered wages of experience rated employers during the fiscal year ending June 30, 2023. 
  
  The Rate Schedule for 2025 is Schedule 1.   The following data was used to determine this schedule: 
 
                          Montana UI Trust Fund Balance / Total Covered Wages = Ratio 
                                 $ 687,385,280.47 / 21,934,766,127.00 = 0.03134 
 
 The Schedule of Contribution Rates below determines the rate schedule based on the minimum ratio. This ratio 
 falls in Schedule 1 (circled). Therefore, rates will range from 0.00% to 6.12%. The average rate will be 1.12%.   
  
                                            Schedule of Contribution Rates 
 Schedule          I      II     III    IV     V       VI     VII           VIII      IX              X            XI 
 Minimum Ratio of 
 Fund to Total                                                                                              
 Wages             0.0260  0.0245  0.0225  0.0200  0.0170  0.0135  0.0095  0.0075  0.0050  0.0025                  (…) 
 Average Tax 
 Rate              1.12%  1.32%  1.52%  1.72%  1.92%   2.12%  2.32%         2.52%     2.72%  2.92%  3.12% 
  Rate Class                            Contribution Rates for Eligible Employers 
       1           0.00   0.00   0.02   0.22   0.42    0.62   0.82          1.02      1.22            1.42         1.62 
       2           0.00   0.02   0.22   0.42   0.62    0.82   1.02          1.22      1.42            1.62         1.82 
       3           0.02   0.22   0.42   0.62   0.82    1.02   1.22          1.42      1.62            1.82         2.02 
       4           0.22   0.42   0.62   0.82   1.02    1.22   1.42          1.62      1.82            2.02         2.22 
       5           0.42   0.62   0.82   1.02   1.22    1.42   1.62          1.82      2.02            2.22         2.42 
       6           0.62   0.82   1.02   1.22   1.42    1.62   1.82          2.02      2.22            2.42         2.62 
       7           0.82   1.02   1.22   1.42   1.62    1.82   2.02          2.22      2.42            2.62         2.82 
       8           1.02   1.22   1.42   1.62   1.82    2.02   2.22          2.42      2.62            2.82         3.02 
       9           1.22   1.42   1.62   1.82   2.02    2.22   2.42          2.62      2.82            3.02         3.22 
       10          1.42   1.62   1.82   2.02   2.22    2.42   2.62          2.82      3.02            3.22         3.42 
  Rate Class                            Contribution Rates for Deficit Employers 
       1           2.92   3.12   3.32   3.52   3.72    3.92   4.12          4.32      4.52            4.72         4.92 
       2           3.12   3.32   3.52   3.72   3.92    4.12   4.32          4.52      4.72            4.92         5.12 
       3           3.32   3.52   3.72   3.92   4.12    4.32   4.52          4.72      4.92            5.12         5.32 
       4           3.52   3.72   3.92   4.12   4.32    4.52   4.72          4.92      5.12            5.32         5.52 
       5           3.72   3.92   4.12   4.32   4.52    4.72   4.92          5.12      5.32            5.52         5.72 
       6           3.92   4.12   4.32   4.52   4.72    4.92   5.12          5.32      5.52            5.72         5.92 
       7           4.12   4.32   4.52   4.72   4.92    5.12   5.32          5.52      5.72            5.92         6.12 
       8           4.32   4.52   4.72   4.92   5.12    5.32   5.52          5.72      5.92            6.12         6.12 
       9           4.52   4.72   4.92   5.12   5.32    5.52   5.72          5.92      6.12            6.12         6.12 
       10          6.12   6.12   6.12   6.12   6.12    6.12   6.12          6.12      6.12            6.12         6.12 

  How is an employer’s individual rate assigned? 
   
  There are three types of experience-rated accounts: New Employer, Eligible Employer, and Deficit Employer.  The  
  criteria and the 2025 rates for each type are below.  Montana UI rating system is very responsive and initially assigns 
  each employer’s rate according to their industry, and then to their record.  Over 5,500 employers received a 0% rate! 
 
                                                                                                      2025 
 New Employers                                     If your Industry Classification is                UI Rate          
                                                    A - Agriculture, Forestry, Hunting & Fishing          1.30 % 
  • Positive reserve (more taxes paid in            B – Mining                                     1.20 
    than benefits charged to the account)           C – Construction                               2.00 
  • Less than 3 full federal fiscal years of        D – Manufacturing                              1.00 
    experience (10/1/2021 - 9/30/2024)              E - Utilities, Transportation, Warehousing     1.00 
                                                    F - Wholesale Trade                            1.00 
  • Industry rates are the average UI rate of       G - Retail Trade                               1.00 
    employers in each industry classification       H - Finance, Insurance, & Real Estate          1.00 
  • Administrative Fund Tax (AFT) is 0.18%          I – Services                                   1.10 
                                                    K - Unclassified Establishments                2.00 
                                                                                                   
                                                                                      Your rate        2025 
 Eligible Employers                              If your reserve ratio is between    class will be      UI Rate          

  • Reserve is positive (more taxes paid in      0.151385 to 999.999999             Eligible 01           0.00% 
    than benefits charged to the account)        0.135544 to 0.151384               Eligible 02           0.00 
  • At least 3 full federal fiscal years of      0.128549 to 0.135543               Eligible 03           0.02 
    experience (10/1/2021 - 9/30/2024)           0.125182 to 0.128548               Eligible 04           0.22 
                                                 0.123304 to 0.125181               Eligible 05           0.42 
  • Paid wages in at least 1 of the 8 
                                                 0.112212 to 0.123303               Eligible 06           0.62 
    preceding calendar quarters 
                                                 0.096324 to 0.112211               Eligible 07           0.82 
  • If UI rate > 0%, then AFT is 0.18%           0.071355 to 0.096323               Eligible 08           1.02 
    If UI rate = 0%, then AFT is 0.13%           0.044149 to 0.071354               Eligible 09           1.22 
                                                 0.000000 to 0.044148               Eligible 10           1.42 
                                                                                                   
                                                                                      Your rate       2025 
 Deficit Employers                               If your reserve ratio is between   class will be    UI Rate          

  • Reserve is negative (more benefits           -0.000001 to -0.003034             Deficit 01            2.92 % 
    have been charged than taxes paid in)        -0.003035 to -0.007423             Deficit 02            3.12 
  • The number of years of experience            -0.007424 to -0.010309             Deficit 03            3.32 
    does not matter                              -0.010310 to -0.015134             Deficit 04            3.52 
                                                 -0.015135 to -0.018809             Deficit 05            3.72 
  • Administrative Fund Tax is 0.18% 
                                                 -0.018810 to -0-047638             Deficit 06            3.92 
  
                                                 -0.047639 to -0.115424             Deficit 07            4.12 
                                                 -0.115425 to -0.293305             Deficit 08            4.32 
                                                 -0293306 to -0.606765              Deficit 09            4.52 
                                                 -0.606766 to -999.999999           Deficit 10            6.12 
 
What is the Administrative Fund Tax?  All employers pay the Administrative Fund Tax (AFT) which funds some of 
the programs of the Montana Department of Labor & Industry. UI taxes are used solely for UI benefits paid. 
The AFT rate is 0.18% except for employers in Eligible Rate Classes who are assigned a 0% UI rate.  Those 
employers pay a lower AFT rate of 0.13%.   
 
What is a “Penalty Rate”?  Can I do anything to reduce my rate to the calculated rate? 
Employers who owe tax, penalty or interest or have not filed all reports when rates are calculated in December will 
receive a “penalty rate”. A penalty rate is 50% higher than your assigned rate.  To lower their rate, an employer must 
file all reports and pay all tax, penalty and interest on their account by January 17, 2025. Resolving delinquent taxes 
and reports can result in significant UI tax savings throughout the year.