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MT · payroll profile

Montana

Everything an out-of-state employer needs before running a Montana payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
Graduated to 5.65%
Reciprocal agreements
1 states
SUI wage base 2026
$47,300
Local income taxes
No

Income tax withholding

Imposes wage income tax Yes
Rate structure Graduated, top marginal rate 5.65%
Withholding certificate MW-4
Montana Employee's Withholding Allowance and Exemption Certificate
Accepts federal Form W-4 No
Convenience-of-the-employer rule No
Nonresident withholding threshold 30 days
Tax Foundation (2026) reports a more-than-30-day threshold for Montana nonresident taxation/withholding. Not confirmed against a Montana DOR publication -- verify with the Montana Withholding Tax Guide before relying on it.
Local income taxes No
No local personal income or wage taxes in Montana.

Reciprocity

Montana exempts residents of 1 state from Montana withholding, provided the employee files MW-4 with the employer.

North Dakota
North Dakota is Montana's only reciprocal partner, confirmed by the Montana DOR North Dakota Reciprocity page. The North Dakota reciprocity exemption is claimed in the exemption section of Form MW-4 (which replaced the standalone Form MT-R). The employer must forward the completed form to the Montana Department of Revenue by the last day of the payroll period in which it was received.

States that exempt Montana residents

A Montana resident working in these states files that state's certificate and is taxed only by Montana.

District of ColumbiaNorth Dakota

Unemployment insurance and paid leave

Taxable wage base 2026 $47,300
2025 base was $45,100.
New employer rate varies by industry
New employers are assigned a rate based on the average for their industry. Rates include the Administrative Fund Tax (AFT).
Experience rate range 0% – 6.12%
Experience-rating method reserve ratio
Employee UI contribution No
Paid family / medical leave No

Employer registration

Tax agency
Montana Department of Revenue
UI agency
Montana Department of Labor and Industry, Unemployment Insurance Division

Sources

revenue.mt.gov · revenue.mt.gov · taxfoundation.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.