Montana / North Dakota tax reciprocity
Each pair below is taxed by the RESIDENCE state, not the work state — the work state agrees not to withhold. Figures are illustrative, on a $75,000 salary.
Who taxes you, and what to file
The certificate goes to your employer in the state you work in. Figures are state income tax on $75,000, single, no dependents.
| Work in | Live in | Certificate to file | Tax under reciprocity | If the work state taxed you |
|---|---|---|---|---|
| North Dakota | Montana | NDW-R | $2,877 | $182 |
| Montana | North Dakota | MW-4 | $182 | $2,877 |
The last column is hypothetical — what the work state would take with no agreement in place. It is not a second bill.
Sources
- North Dakota: North Dakota Office of State Tax Commissioner — Income Tax Withholding & Information Returns Guideline (published 2026-04-10), citing N.D.C.C. § 57-38-59.1 — https://www.tax.nd.gov/sites/www/files/documents/guidelines/business/it-withhold/income-tax-withholding-information-returns-guideline.pdf
- Montana: Montana Dept. of Revenue — North Dakota Reciprocity Agreement — https://revenue.mt.gov/taxes/withholding-tax/north-dakota-reciprocity
Run your own Montana / North Dakota numbers
Opens on work in North Dakota, live in Montana. Change the salary, either state, or filing status below.
Montana / North Dakota: common questions
Does North Dakota tax Montana residents who work there?
No. North Dakota does not withhold its state income tax from a Montana resident's wages under the reciprocity relationship in effect for 2026 — that income is taxed by Montana instead. File NDW-R with your North Dakota employer to stop the withholding. Source: North Dakota Office of State Tax Commissioner — Income Tax Withholding & Information Returns Guideline (published 2026-04-10), citing N.D.C.C. § 57-38-59.1.
Does Montana tax North Dakota residents who work there?
No. Montana does not withhold its state income tax from a North Dakota resident's wages under the reciprocity relationship in effect for 2026 — that income is taxed by North Dakota instead. File MW-4 with your Montana employer to stop the withholding. Source: Montana Dept. of Revenue — North Dakota Reciprocity Agreement.
Does reciprocity cover self-employment or 1099 income?
No. Reciprocity covers employee compensation only, and the scope is set by each state's own materials rather than by a common rule — covers personal services income only — salaries, wages, commissions and fees earned by an employee. Self-employment income, rental income, gambling winnings and pass-through income are outside it, and may still require a nonresident return in the work state.
Other pairs involving these states
See all 32 state reciprocity pairs →