Montana Income Tax Withholding and Payroll Information

Compliance with state taxes is required for every employer. Learn about relevant rates and automation below.

December, 17th 2024

Every state in the country has a unique paradigm for income tax and state unemployment insurance rates. Below are relevant rates and compliance information for Montana in 2025.

Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates.

Alternatively, employers can automatically calculate payroll withholding information using ezPaycheck.

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Montana Tax Information

General 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

How to Calculate Montana Taxes

Identify the employee’s filing status. Montana uses codes for filing status:
- B = Married Single Income
- H = Head of Household
- J = Married Joint Dual Income
- M = Married Single Income (similar to B)
- S = Single
Ensure you know which status applies.
Determine the number of state exemptions from the W-4. Montana withholding uses state exemptions, but no specific deduction amounts are provided here. Follow Montana Department of Revenue guidelines for applying exemptions if needed.
No state-specific standard deductions or itemized deductions are outlined. For Montana withholding, the calculation primarily involves applying the tax rates to the taxable income.
Calculate the employee’s taxable income. Start from the gross annual wages and subtract any federally recognized exemptions or pre-tax contributions as per Montana guidelines.
Apply the Montana tax table based on the employee’s filing status. Montana has progressive rates depending on taxable income ranges.
The tables provided below show the base tax and the rate for excess amounts. Calculate the tax accordingly.
If paying biweekly, divide the annual tax by 26 to obtain the per-pay-period withholding.

If you prefer automation, consider using ezPaycheck software to handle these calculations for you.

Deductions, Allowances, and Exemptions

Montana’s instructions here do not specify detailed deductions like standard or itemized amounts. According to the given data, there are no additional deductions for Montana. Employers should rely on state exemptions (S, M) and follow federal guidelines for pre-tax contributions.

Check the Montana Department of Revenue for any additional instructions regarding allowances and exemptions if necessary.

Tax Chart

Use the following tables based on the employee’s filing status. The letters correspond to filing status as follows:

B = Married Single Income
H = Head of Household
J = Married Joint Dual Income
M = Married Single Income (similar to B)
S = Single

The format of the table is:

Over
But Not Over
Base Tax
Rate
Of Excess Over

Montana Tax Tables for 2025

Single (S) & Married Single Income (B or M)

Over	But Not Over	Tax	Rate	Of Excess Over
$0	$15,000	$0	0%	$0
$15,000	$36,100	$0	4.7%	$15,000
$36,100	and over	$992	5.9%	$36,100

Head of Household (H)

Over	But Not Over	Tax	Rate	Of Excess Over
$0	$22,500	$0	0%	$0
$22,500	$54,200	$0	4.7%	$22,500
$54,200	and over	$1,490	5.9%	$54,200

Married Joint Dual Income (J)

Over	But Not Over	Tax	Rate	Of Excess Over
$0	$30,000	$0	0%	$0
$30,000	$72,200	$0	4.7%	$30,000
$72,200	and over	$1,983	5.9%	$72,200

After determining the annual tax, divide by the number of pay periods (e.g., 26 for biweekly) to find the per-pay-period withholding amount.

Automate Payroll with ezPaycheck

ezPaycheck is simple, reliable, and affordable payroll software designed for small businesses. It can help you automatically calculate Montana state taxes, print paychecks for employees & contractors, generate reports, and print tax forms — no internet connection needed.

Try it free for 30 days with no obligation and no credit card needed. ezPaycheck is available for both Windows and Mac computers.

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