Montana State Income Tax Withholding
Reference Number: NFC-24-1709906313
Published: April 19, 2024
Effective: Pay Period 05, 2024
Summary
The state income tax withholding formula for Montana is changing to include the following changes:
- The annual deduction for withholding allowances has been removed.
- The withholding table has been replaced by three withholding tables based on marital status.
- The calculated withholding amounts are rounded up to the next whole dollar instead of rounded to the nearest dollar.
Special Tax Considerations
Marital status is now required to calculate Montana income tax. The State recommends that all employees complete the new MW-4 form to elect their withholding options. Employees should be taxed based on a marital status of Single if they have not completed a new MW-4 form.
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: |
MW-4 |
|
Basis for Withholding: |
State Exemptions |
|
Acceptable Exemption Data: |
S/M/MS/MB/HH |
|
TSP Deferred: |
Yes |
|
Special Coding: |
None |
|
Additional Information: |
None |
Withholding Formula (Effective Pay Period 05, 2024)
Annualized Percentage Method
Note: The State does not allow employees to claim exemption from withholding on wages that are subject to withholding. If the employee has claimed exemption, but has taxable wages, calculate tax using the steps below.
- 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.
- Apply the annualized taxable wages to the table below based on marital status to determine the annual tax amount.
Single, Married Filing Separately, or Married Filing Joint with Both Spouses Working
Taxable Wages
|
At Least |
Less Than |
Amount Of Tax |
|---|---|---|
| $0 | $14,600.00 | $0 plus 0.0% over $0 |
| $14,600.00 | $35,100.00 | $0 plus 4.7% over $14,600.00 |
| $35,100.00 | And Over | $964.00 plus 5.9% over $35,100.00 |
Married Filing Jointly or Qualifying Widower
Taxable Wages
|
At Least |
Less Than |
Amount Of Tax |
|---|---|---|
| $0 | $29,200.00 | $0 plus 0.0% over $0 |
| $29,200.00 | $70,200.00 | $0 plus 4.7% over $29,200.00 |
| $70,200.00 | And Over | $1,927 plus 5.9% over $70,200.00 |
Head of Household
Taxable Wages
|
At Least |
Less Than |
Amount Of Tax |
|---|---|---|
| $0 | $21,900.00 | $0 plus 0.0% over $0 |
| $21,900.00 | $52,650.00 | $0 plus 4.7% over $21,900.00 |
| $52,650.00 | And Over | $1,445.00 plus 5.9% over $52,650.00 |
- Divide the annual tax amount calculated above by the appropriate number of payroll periods (e.g., 52 for weekly, 12 for monthly, etc.) and round up to the nearest dollar.
- Add additional amount or percentage elected by the employee to the pay period tax calculated in the above step and round up to the nearest dollar to determine the amount of tax to be withheld for this payroll period.
- Divide the annual Montana tax withholding by the number of pay dates in the tax year and round up 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 drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select Taxes 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.