Reciprocity state pair

Live in Montana, work in North Dakota

Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.

State income tax: $4,289 a year

Living in Montana and working in North Dakota, you'd pay about $4,289 in state income tax on $100,000 of wages.

Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.

Tax to North Dakota
$0
nonresident
Tax to Montana
$4,289
resident
Total state tax
$4,289
State returns to file
1

State tax at different salaries

WagesTo NDTo MTTotalIf you worked in MT
$50,000$0$1,593$1,593$1,593
$75,000$0$2,877$2,877$2,877
$100,000$0$4,289$4,289$4,289
$150,000$0$7,114$7,114$7,114
$250,000$0$12,764$12,764$12,764

Single filer, all wages earned in North Dakota, 2026 state tax rules, standard deductions. Local income taxes not included.

What to do

Frequently asked questions

Do I pay North Dakota income tax if I live in Montana?

No. Under the reciprocity agreement you pay only Montana. MT residents working in ND exempt from ND tax on wages; file Form NDW-R annually.

Do I have to file taxes in both Montana and North Dakota?

Usually you file only one state return (a resident return in Montana), though some states still require a nonresident return to get a refund of any wrongly withheld tax.

Will I be taxed twice?

No. Under the reciprocity agreement only Montana taxes your wages: about $4,289 on $100,000.

Related

Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.