Individual Income Tax Liability

Each year the personal exemption, standard deduction, and rate schedule are indexed for inflation. For tax year 2008, taxpayers, spouses and each dependent are allowed a $2,140 exemption.

The standard deduction is 20% of Montana Adjusted Gross Income, with the following:

Standard Deduction Maximum

Single	$4,010
Married Filing Jointly or Head of Household	$8,020

Standard Deduction Minimum

Single	$1,780
Married Filing Jointly or Head of Household	$3,560

Federal Income Tax Itemized Deduction Limitation

Single	$5,000
Married filing separately on the same form	$5,000
Married filing separately on separate forms	$5,000
Married filing separately and spouse not filing	$5,000
Head of Household	$5,000
Married Filing Jointly	$10,000

Nonresidents are taxed just as residents with a final proration of their calculated tax liability. The proration compares income attributable to Montana to total income with the resulting percentage multiplied times the computed tax liability.

Tax Liability Table for 2008

2008 Tax Brackets
If your taxable income is:
More than	But not more than	Then your tax is	Less:
$ 0	2,600	1% of taxable income
2,600	4,600	2% of taxable income	minus $26
4,600	7,000	3% of taxable income	minus $72
7,000	9,500	4% of taxable income	minus $142
9,500	12,200	5% of taxable income	minus $237
12,200	15,600	6% of taxable income	minus $359
15,600 or more		6.9% of taxable income	minus $499

The Department of Revenue collects these taxes. For more information, please call the Customer Service Center at (406) 444-6900.

If you would like tax liability information for a previous year, please refer to a prior year Individual Income Tax Instruction Booklets under the section titled Forms and Resources .