Montana Salary Paycheck Calculator
Are you interested in your take-home pay in Montana? Our Montana Salary Paycheck Calculator provides a precise estimate of your net income after deductions.
Whether you’re a current resident or considering relocating to the Bay State, knowing how your paycheck is distributed can help you manage your finances effectively.
Gross To Net Calculator
The amount that remains after these deductions are considered your net pay.
Montana Taxes: What You Need to Know
The state income tax rate in Montana ranges from 1% to 6.75%. Montana is one of four states that don’t charge state or local sales taxes, so shoppers get a break.
Montana levies taxes on property, natural resources, and corporate and personal income. The state of Montana also taxes specific items like alcohol, tobacco, and gasoline but does not have a general sales tax.
All taxpayers in Montana are subject to the same brackets regardless of their filing status. No cities in the state levy local income taxes. The combined tax burden from state, county, city, town, and school district taxes is substantial.
The state collects $5,065 in state and local taxes per capita. Montana has $5,185 in state and local debt per capita and a 73% funded ratio for public pension plans.
| Tax Type | Rate/Percentage |
| Individual Income Tax | 1.00% – 6.75% (progressive rates) |
| Corporate Income Tax | 6.75% |
| Property Tax | 0.69% (effective rate on owner-occupied housing) |
| Gasoline Tax | 33.75 cents per gallon |
| Cigarette Tax | $1.70 per pack of 20 cigarettes |
| Sales Tax | None |
Description of Montana Tax Withholding and Deductions
Federal, State, and Local Tax Withholding
Employers must withhold federal, state, and local taxes from employees’ paychecks, including federal income tax, state income tax (where applicable), and local taxes. The amount withheld is based on the employee’s earnings and the information provided on their W-4 form.
FICA & State Insurance Taxes
FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare. Employers and employees each contribute 6.2% for Social Security and 1.45% for Medicare. Some states also have state-specific insurance taxes that fund state unemployment and disability insurance programs.
Pre-Tax Deductions
Before taxes are calculated, Pre-tax deductions are taken from an employee’s gross pay. This also includes contributions to medical insurance, retirement plans like 401(k)s, and flexible spending accounts (FSAs). These deductions reduce the employee’s taxable income, resulting in lower tax liability.
Also, in Montana, you can deduct 20% of your adjusted gross income (AGI), but there are limits on this amount.
Median household income in Montana
According to statista, in 2023, Montana’s median household income was 79,220 U.S. dollars. This was a significant increase from the previous year when it was 72,980 U.S. dollars.
The average annual pay of Montana employees totaled 57,236 U.S. dollars in 2023. This increased from the previous year and 2001 levels, when this value stood at 25,195 U.S. dollars.
Montana Tax Brackets 2024
Montana’s tax brackets 2024 have two rates: 4.7% for income up to $20,500 (or $41,000 for joint filers) and 5.9% for income above those amounts. Thus, lower income is taxed at a lower rate, while higher income is taxed at a higher rate.
Here are the Montana tax brackets for 2024 based on the latest information from the Montana State Legislature:
| Filing Status | Tax Rate | Taxable Income Range |
| Single | 4.7% | $0 – $20,500 |
| 5.9% | Over $20,500 | |
| Married (Joint) | 4.7% | $0 – $41,000 |
| 5.9% | Over $41,000 | |
| Married (Separate) | 4.7% | $0 – $20,500 |
| 5.9% | Over $20,500 | |
| Head of Household | 4.7% | $0 – $30,750 |
| 5.9% | Over $30,750 | |
| Widower | 4.7% | $0 – $41,000 |
| 5.9% | Over $41,000 |
Example Calculation
Let’s say you are a single filer with a taxable income of $30,000:
- First Bracket:
Income up to $20,500 is taxed at 4.7%.
Tax: $20,500 * 4.7% = $963.50
- Second Bracket:
Income over $20,500 is taxed at 5.9%.
Tax: ($30,000 – $20,500) * 5.9% = $559.50
- Total Tax:
$963.50 (first bracket) + $559.50 (second bracket) = $1,523
So, a single filer with a taxable income of $30,000 would owe $1,523 in state income tax for 2024.
Frequently Asked Questions
No, Montana does not have local income taxes, so the Montana Paycheck Calculator does not account for them.
Yes, Montana allows a few specific deductions:
- Federal Income Tax Deduction: Up to $5,000 for single filers and $10,000 for married couples filing jointly.
- Subtraction for Taxpayers Aged 65 and Over A $5,500 subtraction from federal taxable income.
- Military Retiree Subtraction: Certain military retirees can subtract some of their benefits.
Yes, reputable Montana Paycheck Calculators, such as the KEKA paycheck calculator, are updated regularly to reflect the latest tax laws.
Montana’s state tax system uses progressive rates from 1% to 6.75%, while federal tax rates are also progressive but with different brackets and rates. Montana allows deductions for federal income taxes paid, which can reduce your state taxable income.
To account for multiple jobs or additional income sources, you can use KEKA paycheck calculators, which allow you to input earnings from various sources to estimate your total tax liability accurately.
Pre-tax deductions such as health insurance premiums and retirement contributions (e.g., 401(k)) can be entered in the “Pre-Tax Deductions” section of the Montana Paycheck Calculator. These deductions reduce your taxable income, thereby lowering your overall tax liability.
When using the Montana Paycheck Calculator, select the “Married Filing Jointly” option in the filing status section. This will adjust the tax brackets and deductions to reflect the joint filing status.
