2024 Rank: 11
2023 Rank: 37
Montana raised its rank from 37th last year to the second-highest scoring state with an individual income tax this year after passing 30-day filing and withholding thresholds. This is undermined somewhat by carveouts for “key employees” making more than $500,000 a year and construction workers, arbitrary carveouts which should be removed.
The state also has a single reciprocity agreement with North Dakota that covers 14.6 percent of incoming commuters.
Category | Current Law | Score | Total Possible |
Filing threshold | More than 30 days - key employee carveout, construction worker carveout | 8 | 10 |
Reciprocity agreements | North Dakota | 1.46 | 10 |
Convenience of the employer rule | None | 0 | 0 |
Individual Income Tax Code | 2.50 | 5 | |
Withholding threshold | More than 30 days - key employee carveout, construction worker carveout | 8 | 10 |
Total Score | 21.96 | 35 |
Ways to Improve:
- Remove “key employee” and construction worker carveouts from filing and withholding thresholds
- Seek reciprocity agreements with:
- Idaho: 11.52 percent of incoming commuters
For further ideas for how your state could improve, see our Example Remote Work Provision.
Read the report here, or click below to read how your state performs on the remote worker index.
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