Montana State Income Tax Withholding Information

State Abbreviation:

MT

State Tax Withholding State Code:

30

Acceptable Exemption Form:

W-4

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

S, M /Number of Exemptions

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

None

Additional Resources:

TAXES 05-11, Montana State Income Tax Withholding

Withholding Formula (Effective Pay Period 07, 2005)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
  5. Determine the exemption allowance by applying the following guideline and subtracting this amount from the result of step 4 to compute the taxable income.

    Exemption Allowance = $1,900 x Number of Exemptions

  6. Apply the taxable income computed in step 5 to the following table to determine the annual Montana tax withholding.

    Tax Withholding Table

    If the Amount of
    Taxable Income Is:

    The Amount of Montana
    Tax Withholding Should Be:

    Over:

    But Not Over:

     

    Of Excess Over:

    $0

    $7,000

     

    $0

    plus

    1.8%

    $0

    7,000

    15,000

     

    126

    plus

    4.4%

    7,000

    15,000

    120,000

     

    478

    plus

    6.0%

    15,000

    120,000

    and over

     

    6,778

    plus

    6.6%

    120,000
  7. Divide the annual Montana tax withholding by 26 and round to the nearest dollar to obtain the biweekly Montana tax withholding.