Montana State Income Tax Withholding
Reference Number: NFC-23-1680033471
Published: March 23, 2023
Effective: Pay Period 03, 2023
Summary
The income tax withholdings for the State of Montana will change as follows:
- The annual amount per withholding allowance has changed from $1,900 to $2,070.
- The withholding table has changed.
No action on the part of the employee or the personnel office is necessary.
Tax Formulas
|
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 |
Withholding Formula (Effective Pay Period 03, 2023)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and 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 the number of pay dates in the tax year 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 = $2,070 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 Tax Withholding Should Be: |
| Over $0 but not over $7,630 | 1.8% |
| Over $7,630 but not over $16,350 | $137 plus 4.4% of excess over $7,630 |
| Over $16,350 but not over $130,790 | $521 plus 6.0% of excess over $16,350 |
| Over $130,790 | $7,387 plus 6.6% of excess over $130,790 |
- Divide the annual Montana tax withholding by the number of pay dates in the tax year and round to the nearest dollar to obtain the biweekly Montana tax withholding.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC dropdown menu on the National Finance Center (NFC) Home page. Select the Publications tab and select U.S. Income Tax Formulas from the Publications Library section to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.