Tax rate used in calculating Montana state tax for year 2019State 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 |
Withholding Formula (Montana Effective 2019) - 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.
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