Reciprocity state pair

Live in North Dakota, work in Montana

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.

By Abu HasnatPage updated Nov 7, 2026Data: North Dakota and Montana revenue departments (methodology)

Official tax guidance for both states

Check withholding, filing requirements and current forms with each state's tax agency.

North Dakota: Office of State Tax Commissioner (opens in new tab)
Montana: Department of Revenue (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 North Dakota, ordinary employee wages and all workdays physically in Montana. 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: ND residents working in MT are exempt from MT tax on covered employee wages; give your employer Montana Form MW-4, claiming the North Dakota exemption on line 5c. Renew the exemption before the beginning of the next year.

I live inI work inAnnual wages ($)Filing status

State income tax: $669 a year

Modeled annual state income tax for living in North Dakota and working in Montana: about $669 on $100,000 of wages.

Conditions for this pair: ND residents working in MT are exempt from MT tax on covered employee wages; give your employer Montana Form MW-4, claiming the North Dakota exemption on line 5c. Renew the exemption before the beginning of the next year.

Tax guide and official sources: live in North Dakota, work in Montana

Official agency starting points: North Dakota tax agency (opens in new tab) · Montana 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.

Tax to Montana

nonresident

Tax to North Dakota

$669

resident

Total state tax

$669

Typical state returns

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.

Modeled state income tax for North Dakota residence and Montana work
Step	Montana work state	North Dakota home state
Tax before the modeled other-state credit	$0	$669
Modeled other-state credit subtracted	$0	$0
Tax after that credit	$0	$669

Total: $0 + $669 = $669 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 MT	To ND	Modeled total	If you worked in ND
$50,000	$0	$0	$0	$0
$75,000	$0	$182	$182	$182
$100,000	$0	$669	$669	$669
$150,000	$0	$1,644	$1,644	$1,644
$250,000	$0	$3,594	$3,594	$3,594

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

From paycheck withholding to your returns

Withholding: Give your Montana employer the 2026 Form MW-4, claiming the North Dakota exemption on line 5c. Renew the exemption before the beginning of the next year. Your employer submits the exemption electronically to Montana. Arrange North Dakota withholding separately; check Form ND-1ES to see whether estimated payments are required.
Returns: File the North Dakota resident return if you are required to file a federal return. File a Montana individual income tax return to obtain a refund of Montana tax withheld in error on reciprocal wages. Other Montana-source income can require a Montana return even when wages are exempt. The linked Form 2 instructions are the 2025 edition; use the return and instructions for the year being filed.
Credit or refund: Recover erroneous Montana wage withholding through a Montana refund claim, not a North Dakota credit for that withholding. Reciprocity exempts covered wages from Montana state income tax; it does not exempt other Montana-source income.

Worked example: $100,000 of wages

Single filer, full-year resident of North Dakota, all work performed in Montana, no other income, standard deductions and modeled personal exemptions. Covered wages are exempt from Montana state income tax under wage reciprocity. Pay a modeled $669 to North Dakota, total $669. This exemption is not an other-state tax credit.

The official 2026 ND-1ES schedule starts from federal taxable income. In this single-filer wage example, ($100,000 minus the $16,100 federal standard deduction minus North Dakota's $49,575 zero-rate threshold) × 1.95% = $669.34 to North Dakota, with $0 Montana tax on covered wages. This is annual liability, not withholding, a refund or required estimated payments.

Annual liability, not paycheck withholding or a refund estimate. Federal tax, payroll programs, other local taxes, special credits and part-year residency are excluded. Local income taxes not included.

Remote-work and local exceptions

This example assumes a full-year North Dakota resident with employee wages, not self-employment, and all work performed in Montana. Nonwage Montana-source income, a move during the year, or a change of residence needs a separate determination; the calculator does not allocate a part-year return.

Official forms and instructions

Source audit 2026-10-12. Use the return and instructions for the year you are filing; a current-forms link may still show a prior-year return. Official sources checked; not independently reviewed.

What to do

Keep a record of the days you work in each state, especially if you sometimes work from home.

Frequently asked questions

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

If you qualify for the wage-reciprocity exemption, no Montana state income tax on covered employee wages: under reciprocity North Dakota taxes them. City and county taxes require a separate check. ND residents working in MT are exempt from MT tax on covered employee wages; give your employer Montana Form MW-4, claiming the North Dakota exemption on line 5c. Renew the exemption before the beginning of the next year.

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

File the North Dakota resident return if you are required to file a federal return. File a Montana individual income tax return to obtain a refund of Montana tax withheld in error on reciprocal wages. Other Montana-source income can require a Montana return even when wages are exempt. The linked Form 2 instructions are the 2025 edition; use the return and instructions for the year being filed.

Will I be taxed twice?

Not at the state level on covered wages: under reciprocity North Dakota taxes them, about $669 on $100,000 in this model. The estimate includes resident county tax where modeled; other local taxes or credits are separate.

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