First, you should know that the rates and brackets differ at the state and federal levels. Second, you should be aware of the different types of income you can deduct. Once you know these details, you can use the Montana income tax calculator to estimate your taxes.
A Montana income tax calculator will help you determine how much you have to pay in taxes. It will also let you claim deductions that lower your taxable income. Montana residents can claim the standard deduction of 20% of adjusted gross income (AGI). The standard deduction is different for single and married taxpayers. The maximum for single filers is $4,580, while the maximum for married is $9,160.
Montana Tax Brackets
When filing your income tax in Montana, it’s important to know your tax bracket. This is because income tax rates in Montana are progressive, meaning that the higher your income, the higher your tax rate. Lower-income residents pay as little as 1% of their income in income tax, while high-income earners pay as much as 6.9%.
Those earning more than $19,800 will hit the highest tax bracket. They’ll also pay FICA taxes for Social Security and Medicare. In addition, investment profits will be included in their taxable income. However, Montana provides a capital gains tax credit equal to 2% of a person’s net capital gains, reducing the maximum tax rate to 4.9%.
Montana Tax Brackets for Tax Year 2023
|Tax Rate||Income Range||Taxes Due|
|1%||$0 – $3,300||1% within Bracket|
|2%||$3,300 – $5,800||2% within Bracket Less $33|
|3%||$5,800 – $8,900||3% within Bracket Less $91|
|4%||$8,900 – $12,000||4% within Bracket Less $180|
|5%||$12,000 – $15,400||5% within Bracket Less $300|
|6%||$15,400 – $19,800||6% within Bracket Less $454|
|6.90%||$19,800 +||6.90% within Bracket Less $603|
Using Montana Income Tax Calculator
If you live in Montana, you may also have to pay local taxes. Most cities in the state collect local sales taxes, and some charge additional excise taxes on things like alcohol, tobacco, fuel, and other items.
These taxes can add up fast, so using the Montana Income Calculator online is a good idea to make your calculations easier. However, while many people rely on a calculator to figure out their tax obligations, it is still recommended that you should also seek out the advice of a professional. Filing taxes incorrectly could land you in serious trouble.
Montana Income Tax Calculator TaxUni
If you’re looking for a Montana income tax calculator, that’s a good place to start. This calculator can help you calculate your taxes by breaking down your income into taxable and nontaxable components. These amounts are based on the income tax tables for the state of Montana. The variables have been assumed for simplification purposes. This document should be used for approximate purposes only and is not legal advice. For more assistance, contact a qualified tax professional.