The 2023 picture for Montana residents
In 2023, Montana residents paid federal ordinary income tax at brackets topping out at 37%, plus Montana state tax up to 5.9%, plus Medicare (1.45% + 0.9% additional above $200k single MAGI), plus a federal supplemental-withholding layer on RSU-style income.
2023 federal capital gains brackets
In $2023, federal long-term capital gains rates were 0% up to approximately $44,625, 15% up to approximately $492,300, and 20% above. The 3.8% NIIT added for MAGI above $200,000 single, producing a 23.8% top federal rate on long-term equity sales.
Montana treatment in 2023
Montana offered preferential treatment for long-term capital gains in 2023. The specific exclusion percentage depended on the state's statute; confirm the 2023 version before applying.
Frequently asked
- What supplemental-wage withholding rate applied to RSU income in Montana in 2023?
- The federal supplemental-wage withholding rate was 22% on the first $1,000,000 of supplemental wages per calendar year, rising to 37% above that. Montana state withholding ran up to 5.9% at the top bracket.
- Did Montana recognize federal QSBS exclusion in 2023?
- Montana's conformity status varies year by year and by type of taxpayer. As of 2023, most states other than California, New Jersey, Pennsylvania, and Mississippi either conformed fully or partially to Section 1202. Check the 2023 filing instructions for the specific language.
- What was the top federal ordinary bracket in 2023, and how did it apply to Montana residents?
- The 37% federal ordinary bracket started around $609,350 of taxable income for single filers in 2023. Montana stacked 5.9% on top of that for high earners, producing a combined top marginal rate of approximately 42.9%.