Live in Montana, Work Remotely for a Washington Employer: Who Taxes You?
Answer
One state, one return: Montana. Washington has no wage income tax, so working there changes nothing about what you owe. Your Montana resident return reports the Washington income along with everything else, and there is no credit to claim because Washington charged you nothing.
Last verified
Crossing into a state with no income tax does not lower your tax bill, because your home state is not taxing you on where you work — it is taxing you on where you live. Montana reaches all of a resident's income, and Washington adds nothing on top.
What you file
- 1Resident return · Montana
File a Montana resident return reporting all of your income.
The two states, side by side
| Montana | Washington | |
|---|---|---|
| Taxes wages | Yes — graduated | No |
| Reciprocity partners | 1 (Form MW-4) | None |
| Convenience rule | No | No |
| Nonresident return | Form 2 with the nonresident/part-year schedule | Not applicable |
| Credit for other-state tax | Form 2 (credit for income tax paid to another state) | No income tax |
| Nonresident safe harbour | None published | Not applicable |
| Local income tax | No | No |
| Revenue department | Montana Department of Revenue | Washington State Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Washington and working in Montana gives:No state income tax on your wages.
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.
- W-2 commuter: Montana → WashingtonHome state only
- 1099 contractor: Montana → WashingtonHome state only — estimated payments
- Moved mid-year: Montana → WashingtonOne part-year return — the state you left
Other Montana pairs
Questions people actually ask
I live in Montana and work remotely for a Washington employer. Which state do I pay?
One state, one return: Montana. Washington has no wage income tax, so working there changes nothing about what you owe. Your Montana resident return reports the Washington income along with everything else, and there is no credit to claim because Washington charged you nothing.
Which state should my employer be withholding for?
Montana. Your employer should withhold Montana tax rather than Washington tax on these wages. If a Washington line is showing on your pay stub, raise it with payroll now rather than at filing time.
How current is this?
The Montana and Washington rules on this page were last checked against Montana Department of Revenue and Washington State Department of Revenue 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.
- Montana Department of Revenue — individual income taxaccessed 2026-08-07
- Washington State Department of Revenue — individual income taxaccessed 2026-08-07