Live in Montana, work in North Dakota
Reciprocity agreement: covered employee wages are subject to state income tax only in your home state. Give your employer the work state's exemption form and arrange home-state withholding. County and city taxes require a separate check.
Official tax guidance for both states
Check withholding, filing requirements and current forms with each state's tax agency.
- Montana: Department of Revenue (opens in new tab)
- North Dakota: Office of State Tax Commissioner (opens in new tab)
Agency directory checked 2026-10-01 against the IRS state-government directory. This verifies the agency links, not an individual tax result. Use forms for the year you are filing.
Before you use this estimate
This model assumes a full-year resident of Montana, ordinary employee wages and all workdays physically in North Dakota. Check exemption eligibility before treating a work-state amount of $0 as your own result. Withholding is a prepayment, not final tax liability. Other income, a move during the year, remote work and separate local taxes or credits can change the result.
Wage-exemption conditions: MT residents working in ND exempt from ND tax on wages; file Form NDW-R annually.
State income tax: $4,289 a year
Modeled annual state income tax for living in Montana and working in North Dakota: about $4,289 on $100,000 of wages.
Reciprocity agreement: covered employee wages are subject to state income tax only in your home state. Give your employer the work state's exemption form and arrange home-state withholding. County and city taxes require a separate check.
Conditions for this pair: MT residents working in ND exempt from ND tax on wages; file Form NDW-R annually.
Tax guide and official sources: live in Montana, work in North Dakota
Official agency starting points: Montana tax agency (opens in new tab) · North Dakota tax agency (opens in new tab). These directory links identify the selected states' agencies, not your filing obligations. Check their individual-tax guidance and forms for the year you are filing.
This is the usual filing pattern, not a determination that you must file. Filing thresholds, age or dependent status, other income and withholding refunds can change which returns you need.
How this $100,000 estimate adds up
These steps follow the selected home, work state, salary and filing status. They reconcile the model's annual liability, not the amounts withheld from your paycheck.
| Step | North Dakota work state | Montana home state |
|---|---|---|
| Tax before the modeled other-state credit | $0 | $4,289 |
| Modeled other-state credit subtracted | $0 | $0 |
| Tax after that credit | $0 | $4,289 |
Total: $0 + $4,289 = $4,289 a year. Amounts are rounded for display. Work-state wage exemptions, when applicable, are already reflected in the first row; they are not an other-state credit.
No other-state credit is subtracted in this selected scenario. Included county components stay in these amounts; excluded local taxes and credits stay excluded. Federal income tax, payroll programs and refund eligibility are outside this reconciliation.
State tax at different salaries
| Wages | To ND | To MT | Modeled total | If 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
- Reciprocity: MT residents working in ND exempt from ND tax on wages; file Form NDW-R annually.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Frequently asked questions
Do I pay North Dakota income tax if I live in Montana?
If you qualify for the wage-reciprocity exemption, no North Dakota state income tax on covered employee wages: under reciprocity Montana taxes them. City and county taxes require a separate check. 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?
Not at the state level on covered wages: under reciprocity Montana taxes them, about $4,289 on $100,000 in this model. The estimate includes resident county tax where modeled; other local taxes or credits are separate.
Related
- Live in North Dakota, work in Montana
- Moving from Montana to North Dakota
- Moving from North Dakota to Montana
- Live in Montana, work in Idaho
- Live in Montana, work in South Dakota
- Live in Montana, work in Wyoming
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.