Tax rate used in calculating Montana state tax for year 2021
State Abbreviation:
|
MT
|
State Tax Withholding State
Code:
|
30
|
Acceptable Exemption Form:
|
W-4
|
Basis For Withholding:
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State Exemptions
|
Acceptable Exemption Data:
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S, M / Number of Exemptions
|
TSP Deferred:
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Yes
|
Special Coding:
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None
|
Additional Information:
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None
|
Withholding Formula (Montana Effective 2021)
- 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
What is the cost of using ezPaycheck payroll software
Quick Start Guide for New Payroll Software Customers
How to start payroll in mid-year
How to handle tips in restaurants
How to handle the local taxes
How to print paycheck on blank stock
How to add a customized deduction and withhold it automatically
How to set up payroll tax options for church and non-profits
How to handle paychecks for both employees and contractors
How to file tax forms
How to enter the paychecks for after the fact payroll
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