How to Calculate 2018 Montana State Income Tax by Using State Income Tax Table
1. Find your income exemptions
2. Find your pretax deductions, including 401K, flexible account contributions ...
3. Find your gross income
4. Check the 2018 Montana state tax rate and the rules to calculate state income tax
5. Calculate your state income tax step by step
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Subtract the nontaxable biweekly Thrift Savings Plan
contribution from the gross biweekly wages.
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.
Add the taxable biweekly fringe
benefits (taxable life insurance, etc.) to the amount computed in step 2
to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross
biweekly wages by 26 to obtain the annual wages.
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
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
Divide the annual Montana tax
withholding by 26 and round to the nearest dollar to obtain the biweekly
Montana tax withholding.
More Payroll Information for Montana Small Business