Skip to content
statelinetax.comChecker

Live in Montana, Work Remotely for a Alaska Employer: Who Taxes You?

Home state onlyMontana withholds

Answer

One state, one return: Montana. Alaska has no wage income tax, so working there changes nothing about what you owe. Your Montana resident return reports the Alaska income along with everything else, and there is no credit to claim because Alaska charged you nothing.

Last verified

The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. Alaska takes nothing, but Montana still taxes residents on income earned anywhere, so the full amount lands on your Montana return.

What you file

  1. 1Resident return · Montana

    File a Montana resident return reporting all of your income.

The two states, side by side

 MontanaAlaska
Taxes wagesYes — graduatedNo
Reciprocity partners1 (Form MW-4)None
Convenience ruleNoNo
Nonresident returnForm 2 with the nonresident/part-year scheduleNot applicable
Credit for other-state taxForm 2 (credit for income tax paid to another state)No income tax
Nonresident safe harbourNone publishedNot applicable
Local income taxNoNo
Revenue departmentMontana Department of RevenueAlaska Department of Revenue — Tax Division
Last verified

The other direction

Reversing the commute does not always reverse the answer. Living in Alaska and working in Montana gives:No state income tax on your wages.

Alaska to Montana →

Same two states, different situation

The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.

Other Montana pairs

Questions people actually ask

I live in Montana and work remotely for a Alaska employer. Which state do I pay?

One state, one return: Montana. Alaska has no wage income tax, so working there changes nothing about what you owe. Your Montana resident return reports the Alaska income along with everything else, and there is no credit to claim because Alaska charged you nothing.

Which state should my employer be withholding for?

Montana. Your employer should withhold Montana tax rather than Alaska tax on these wages. If a Alaska line is showing on your pay stub, raise it with payroll now rather than at filing time.

How current is this?

The Montana and Alaska rules on this page were last checked against Montana Department of Revenue and Alaska Department of Revenue — Tax Division on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.

Sources

Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.