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Montanaworking inNorth Dakota
Reciprocity — home state withholds for you

North Dakota

Work State Tax Rate
Top 2.5% (among the lowest; restructuring to 3 brackets in 2026)
Withholding Starts
N/A (reciprocity)
Law Last Updated
Jan 1, 2026

Employee Obligations (Which Returns YOU Must File)

Montana has a reciprocity agreement with North Dakota. If your only income from North Dakota is wages, salary, tips, or commissions, file your Montana return only — no North Dakota return needed. Give your North Dakota employer your reciprocity form (MT-R) each year.

Employer Obligations (What Your Employer Must Withhold & Remit)

Reciprocity applies. If the employee provides the reciprocity form (MT-R), withhold Montana tax instead of North Dakota tax. Must still register for North Dakota unemployment insurance. If the employee provides Form NDW-R, withhold Minnesota tax instead of North Dakota tax. Register for ND unemployment. Workers' comp is a monopolistic state — must buy from the state fund. Unemployment applies to the first $43,800 of wages.

Reciprocity Agreement — File Home State Only for Wages

Montana has a reciprocity agreement with North Dakota. For wage income, you only need to file your Montana return. Give your employer the reciprocity form (MT-R) each year to avoid North Dakota withholding.

Employee/Individual Tax Source: https://www.tax.nd.gov/
Row last reviewed: May 8, 2026Home state credit form: Schedule V

This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.