Remote Workers Should Check Their Tax Liability Before Moving to Montana

A friend who lived and worked in California just moved to Missouri because his wife got a new job. He's keeping his California job but working remotely in Missouri.

I asked him if he was relieved not to be paying California taxes anymore and he said yes. He added, "I'm also glad I don't have to pay taxes in both states."

This was something I didn't realize but it is a reality for some remote workers.

Montanans and Taxes

We Montanans groan every time we have to buy something out of state. It's easy to forget about sales tax, but then there's a reflexive "oh yeah" when you take your item to the register and the total rings up for dollars more than the price tag.

Montanans were vocal about increased property taxes in 2023, too, but another reality is that many states have higher property taxes than Montanans do.

Remote Workers in Montana

The tax benefits could certainly be one of the reasons Montana has seen so many remote workers move to the state. But if you want to relocate to Montana to work remotely, you may want to double-check what kind of taxes you'll be paying.

The New York Post points out in a recent article that depending on where you live and where you work (or where the business you work for is located) you may have to pay taxes in two states.

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You'll want to know if your company has a "convenience rule", which the New York Post says, "allows states to impose income tax on employees, even if they are working remotely in other states if they are employed by a company that is headquartered within their borders."

There are exceptions like reciprocity agreements and tax credits, but you may want to check with a tax professional before moving.