This information is for general guidance only.
Please consult your tax professional for more direct guidance.
Your Montana income tax liability depends on your residency status. The following information is provided as a guide to assist you in determining your Montana residency status.
Montana has three residency statuses:
- Resident
- Part-Year Resident
- Nonresident
Resident
You are a Montana resident if you are domiciled or maintain a permanent place of abode in Montana.
Montana taxes all of a resident’s income, even if that income is earned out-of-state.
There are a variety of factors when determining whether a person is domiciled or maintains a permanent place of abode in Montana.
These includes, but are not limited to:
- Registering to vote in Montana
- Having a Montana driver’s license
- Having a Montana ID card
- Having a Montana resident hunting or fishing license
- Claiming Montana residency when applying for admission or financial aid at a Montana college or university
- Receiving services from a program administered by the Montana Department of Health and Human Services, which is only available to Montana residents
- Having a concealed weapon permit in Montana
- Claiming Montana residency for tax purposes in prior or current years
- Where an individual registers his or her motor vehicles
- Where an individual owns, rents, or occupies a developed real estate property, a mobile home, or a recreational vehicle with sleeping and cooking arrangements, during the tax period
- Where the individual regularly receives his or her mail
- The location of an individual’s principal place of business, profession, or occupation
- Where an individual’s professional licenses were issued and used during the tax year
- Where an individual obtains professional, financial, or healthcare services on a regular basis including, but not limited to, legal advice, accounting advice, dental care, or primary healthcare
- Where an individual attends or is a member of his or her place of worship
- The location of any social, fraternal, athletic organizations, clubs, or lodges in which the individual is a member
This is not a complete list and a person does not need to meet all of the factors listed to be considered a resident. Each individual’s circumstances and intentions are considered when determining residency.
If an individual maintains a place of abode in both Montana and another state, and both show similar permanency characteristics, the department may look at whether the individual has abandoned residency of one state in favor of another state through affirmative actions.
Example:
Jim works in Wyoming for 11 months out of the year. However, Jim is registered to vote in Montana, holds Montana resident hunting and fishing licenses, and holds a Montana driver’s license. These are all indications that he is a Montana resident. As a result, all of his income, even what he earned in Wyoming, is taxable on his Montana tax return.
Part-Year Resident
You are a part-year resident of Montana if you either:
- Were a Montana resident at the start of the year and then established residency in another state during the year, or
- Were a nonresident at the start of the year and then established residency in Montana during the year.
Part-year residents must file an income tax return as a part-year resident and use the Nonresident/Part-Year Resident Schedule to determine their Montana tax liability.
Montana taxes the income that a part-year resident receives while living in Montana plus any income received from Montana sources when not living in Montana.
Example:
Pam lived in Montana for four months of the year, then moved to Pennsylvania.
The income she earned during those four months is considered Montana source income and is taxable in Montana.
The following individuals are examples of who would not be considered part-year residents:
- Retirees (commonly referred to as “snowbirds”) who are residents of Montana but live in another state for a portion of each year.
- A resident of another state who works in Montana on a seasonal basis but does not establish residency in Montana.
- A Montana resident attending an out-of-state college who has not established residency elsewhere.
Nonresident
You are a nonresident of Montana if you are neither a resident of Montana nor a part-year resident.
Nonresidents may still owe Montana income tax if they received Montana source income.
Military Service Members
If you are a military service member or the spouse of a military service member, please see the Form 2 instructions or the Montana Department of Revenue’s website to determine whether you have a filing obligation in Montana.