Individual Income Tax Liability

Each year the personal exemption, standard deduction, and rate schedule are indexed for inflation. For tax year 2007, taxpayers, spouses and each dependent are allowed a $2,040 exemption.

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

Standard Deduction Maximum

Single	$3,810
Married Filing Jointly or Head of Household	$7,620

Standard Deduction Minimum

Single	$1,690
Married Filing Jointly or Head of Household	$3,380

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 2007

2007 Tax Brackets
If your taxable income is:
At least	But less than	Then your tax is	Less:
$ 0	2,500	1% of taxable income
2,500	4,400	2% of taxable income	minus $25
4,400	6,600	3% of taxable income	minus $69
6,600	9,000	4% of taxable income	minus $135
9,000	11,600	5% of taxable income	minus $225
11,600	14,900	6% of taxable income	minus $341
14,900 or more		6.9% of taxable income	minus $475

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 .