Montana Income Tax Calculator
Understanding Montana Taxes (2024)
Calculating your Montana taxes involves understanding the state's progressive tax system, federal obligations, and FICA contributions. This calculator helps you estimate your take-home pay by considering these key components.
Montana State Income Tax
Montana has a progressive income tax system with seven tax brackets for 2024, ranging from 1% to 6.75% depending on your income and filing status.
- Tax Brackets: Montana has seven tax brackets with rates of 1%, 2%, 3%, 4%, 5%, 6%, and 6.75%.
- Taxable Income: Montana's starting point is your federal adjusted gross income (AGI) with Montana-specific adjustments.
- Standard Deduction: Montana has a unique standard deduction that phases out as income increases. For single filers, it ranges from $3,500 to $7,000, and for joint filers, it ranges from $7,000 to $14,000.
- Personal Exemptions: Montana offers a personal exemption of $2,900 per person for 2024.
- Tax Credits: Montana offers various credits including the elderly homeowner/renter credit and the energy conservation installation credit, which this calculator does not account for.
Local Taxes
Montana does not have local income taxes. The state income tax is the only income tax that Montana residents pay to the state.
Federal Income Tax
Federal income tax is based on federal tax brackets, your filing status, deductions (standard or itemized), and allowances claimed on your W-4. Pre-tax deductions like 401(k) or HSA contributions reduce your federal taxable income.
FICA Taxes (Social Security & Medicare)
FICA taxes fund Social Security and Medicare. These are typically withheld by employers.
- Social Security: 6.2% on income up to the annual limit ($168,600 for 2024).
- Medicare: 1.45% on all income. An additional 0.9% Medicare tax applies to income above certain thresholds ($200,000 for Single, $250,000 for MFJ).
Other Montana Taxes (Not Calculated Here)
While this calculator focuses on income taxes, be aware of other taxes in Montana:
- No Sales Tax: Montana is one of the few states with no general sales tax.
- Property Tax: Property taxes in Montana are administered at the local level and vary by county and municipality.
- No Estate/Inheritance Tax: Montana does not have estate or inheritance taxes.
Disclaimer: This information is for general guidance for the 2024 tax year and is not tax advice. Consult a tax professional for personalized advice.