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 04-16, Montana State Income Tax Withholding

Withholding Formula Arrow Left(Effective Pay Period 13, 2004)Arrow Right

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Arrow LeftSubtract the nontaxable biweekly Federal Health Benefits Plan payment 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.Arrow Right
  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 = Arrow Left$1,780Arrow Right 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

    $8,230

     

    $0

    plus

    2.6%

    $0

    8,230

    18,250

     

    Arrow Left214

    plus

    4.4%

    8,230

    18,250

    40,000

     

    655

    plus

    6.1%

    18,250

    40,000

    and over

     

    1,982Arrow Right

    plus

    6.5%

    40,000
  7. Divide the annual Montana tax withholding by 26 and Arrow Leftround to the nearest dollarArrow Right to obtain the biweekly Montana tax withholding.