Commuter taxes 2026

Live in South Dakota, work in Montana

Your home state has no income tax, so there is no credit to offset the work state's tax. You pay the work state as a nonresident.

State income tax: $4,289 a year

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

Your home state has no income tax, so there is no credit to offset the work state's tax. You pay the work state as a nonresident.

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

State tax at different salaries

WagesTo MTTo SDTotalIf you worked in SD
$50,000$1,593$0$1,593$0
$75,000$2,877$0$2,877$0
$100,000$4,289$0$4,289$0
$150,000$7,114$0$7,114$0
$250,000$12,764$0$12,764$0

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

What to do

Frequently asked questions

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

Yes. Montana taxes wages earned there by nonresidents. On $100,000 that's about $4,289.

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

Usually you file only one state return (a nonresident 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. South Dakota has no income tax, so you pay only Montana's nonresident tax: 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.