Montana State Income Tax 2023 - 2024
Montana has a progressive state income tax system, with rates of 1% to 6.75% on taxable income.
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The state of Montana requires employers to withhold and remit state income tax on wages paid to employees. This is in addition to the federal withholding taxes that must be deducted. In order to make payments, Montana employers must register with the Department of Revenue and the Department of Labor and Industry. The Department of Revenue collects personal and business taxes, such as individual income tax, corporate income tax, mineral royalty withholding, and alcoholic beverage tax. It also administers the cigarette excise tax and oversees property assessment and appraisal. The state is one of the few that does not levy a local sales tax. Individuals who work in Montana are subject to a state income tax rate that varies by bracket. The rate ranges from 1% to 6.75%, depending on the taxable income.
Montana Social Security Income Tax
Social Security income is also taxable in Montana, but there is a deduction available for taxpayers below certain income limits. All Social Security retirement income is deductible for single filers with an AGI below $25,000 and joint filers with an AGI below $32,000. In addition, contributions to qualified retirement accounts, including 401(k)s and IRAs, may be deducted from taxable income.
There are several ways to pay Montana state taxes, including online and via mail. To pay by credit or debit card, use Montana TAP. To pay by check, complete voucher Form IT and attach a check or money order payable to “Montana Department of Revenue.” Write your Social Security number and the tax year on the voucher. Mail the voucher and check to the address on the form.
How to File Montana State Income Taxes?
The State of Montana does not require individuals to file online. However, a software solution can support a fully automated e-file process for Montana state returns in conjunction with federal returns. Such software solutions can automatically update forms and schedules with the latest version of your federal return. They can also providea a summary of your return information in case you need to make any changes to your Montana return.
Montana State Income Tax Due Dates
Governor Gianforte recently extended the Montana individual state filing deadline to match the federal one. The extension only applies to the Montana state income tax return and does not extend quarterly estimated payments or other state taxes due date.
When you file a Montana state return, the department requires that you pay any taxes owed by the original due date of your return (April 15th for calendar year filers). If you do not pay the tax by the due date, the department may levy (seize) your wages or bank accounts. If you are having trouble paying your taxes, contact a local tax pro for help. They can provide you with a payment plan for your Montana tax debt and help you find relief from the State of Montana.
