Graphic Designer Taxes in Montana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Graphic Designer in Montana

From branding Big Sky Country’s businesses to crafting stunning visuals for tourism, graphic designers in Montana play a vital role in the state’s vibrant economy. However, alongside creative freedom comes the responsibility of managing taxes as a self-employed individual.

As a graphic designer operating as an independent contractor in Montana, the federal government requires reporting all business income and expenses on Schedule C (Profit or Loss From Business) with Form 1040. Crucially, income exceeding $400 necessitates the payment of self-employment tax, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is paramount for a smooth tax filing process.

How Montana Handles Gig Worker Taxes

Montana, known for its breathtaking landscapes and independent spirit, also requires residents to file a state income tax return. As a self-employed graphic designer residing in Montana, you are obligated to file an annual state income tax return, even if no state income tax is ultimately due. Montana operates under a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Montana’s income tax rates are tiered, ranging from 1% to 6.75%. The primary form used for filing state income tax as a self-employed individual is Form 17, Montana Individual Income Tax Return. This form requires you to report your federal adjusted gross income and then calculate your Montana taxable income, taking into account any applicable deductions and credits. Montana also requires reporting of self-employment income on Schedule SE (Federal) and then transferring that information to Form 17. Remember to keep detailed records of all income and expenses to accurately complete your Montana tax return. Montana also offers various credits and deductions that may be beneficial to self-employed individuals, so exploring these options is highly recommended.

For more information and resources, please visit the Montana Department of Revenue: https://revenue.mt.gov/

Key Tax Deductions for Home-Based Graphic Designers

• Home Office Deduction: The home office deduction allows designers to deduct expenses related to the portion of their home exclusively and regularly used for business. “Exclusive use” means that space is only used for work; a dining room table used for both meals and design work doesn’t qualify. “Regular use” means consistent, ongoing use for business. Taxpayers can choose between the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of mortgage interest, rent, utilities, etc., based on the square footage used for business).
• Hardware & Software: The costs of essential tools like computers, graphic tablets, cameras, and software subscriptions (Adobe Creative Cloud, font licenses, website hosting) are generally deductible as business expenses. For items with a useful life of more than one year, depreciation or Section 179 expensing may apply.
• Internet & Phone Bill: If a portion of your internet and phone usage is directly related to your graphic design business, you can deduct the business-use percentage. Carefully track how much time is spent on business-related activities versus personal use to determine the deductible amount.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, any travel to meet with clients, attend industry events, or purchase supplies for your business can be claimed using the standard mileage rate or actual expenses.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the employer and employee portions of these taxes when working for a traditional employer. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).