Montana Guide for Canadians

Quick Facts

State Income Tax	4.7% to 5.9% (two-bracket system)
Sales Tax	No state sales tax
Driver's License Grace Period	30 days for residents
Residency Requirement for Tax	183+ days or domicile in Montana
Vehicle Registration Deadline	60 days for residents
REAL ID Deadline	May 7, 2025 for domestic flights
Property Tax	0.69% effective rate (owner-occupied)

First 90 Days Checklist

Week 1-2: Essential Documents & Registration

• Register with USCIS if staying 30+ days (required by April 11, 2025)
• Gather required documents for driver's license
• Open US bank account
• Set up Montana mailing address

Week 3-4: Official Registration

• Apply for Montana driver's license (within 30 days)
• Pass written knowledge test and road skills test
• Register vehicle if brought from Canada (within 60 days)
• Register to vote (if eligible)

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Establish Montana ties and connections
• Research healthcare options and insurance
• Note: 183+ days establishes Montana tax residency

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents:

• Valid Canadian passport or enhanced license
• Birth certificate or citizenship documents
• Two proofs of Montana residential address
• Social Security Number (if applicable)

Testing Requirements:

• Written knowledge test required (33 questions)
• Road skills test required - Montana does not accept foreign licenses
• Vision screening required (20/40 or better)
• No mandatory pre-licensing course

License Options:

• Standard Montana license valid up to 8 years
• REAL ID compliant license available
• Enhanced license not available in Montana
• Fee: $5.00 per year plus 3% administrative fee

Important Notes:

• 30-day limit to get Montana license after residency
• Canadian license will be surrendered
• REAL ID required by May 7, 2025 for air travel
• Nonresidents may drive with valid home license

Vehicle Registration

• Register within 60 days of establishing residency
• Annual registration renewal required
• Montana insurance required for registration
• Emissions testing not required statewide

Tax & Residency Considerations

Montana State Tax Structure

• **Progressive income tax** 4.7% to 5.9% (two brackets)
• **No state sales tax** - significant advantage
• **No estate or inheritance tax**
• **Low property taxes** (0.69% effective rate)
• **Corporate income tax** 6.75%

Establishing Montana Tax Residency

Montana residency is based on domicile and statutory presence:

• Domiciled in Montana (intent to make permanent home)
• Statutory resident: 183+ days in tax year
• Maintaining permanent place of abode in Montana

Documentation to Establish Residency

• Montana driver's license and voter registration
• Bank accounts and utility bills in Montana
• Employment or business activities in Montana
• Professional licenses, club memberships
• Property ownership or long-term lease

Tax Advantages

Montana offers significant tax advantages with no sales tax, no estate tax, and relatively low income tax rates. This makes it attractive for retirees and business owners.

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
New Requirement: Canadians staying 30+ days must register with USCIS by April 11, 2025.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Limited Medicaid expansion with restrictions
• Travel insurance strongly recommended
• Consider US health insurance if staying permanently
• Quality medical facilities in Billings, Missoula, Great Falls

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• Rural areas may have limited pharmacy access
• Research pharmacy options in larger cities

Special Considerations for Snowbirds

New US Registration Requirements (2025)

• Canadians staying 30+ days must register with USCIS
• Registration required by April 11, 2025
• Print and carry latest I-94 as proof of legal entry
• Failure to register may affect future US travel

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons (183-day rule)
• Maintain Canadian insurance & banking relationships
• Montana's 183-day rule for tax residency

Property Considerations

• Affordable property values compared to coastal states
• Low property tax rates (0.69% effective)
• Rural and recreational property opportunities
• Impact on Canada's principal residence exemption

Climate & Lifestyle Factors

• Continental climate with cold winters, warm summers
• Outdoor recreation paradise - hunting, fishing, hiking
• Lower cost of living than most western states
• Smaller Canadian communities, more rural lifestyle

Border Proximity

• Border crossings at Sweetgrass, Roosville, and others
• Enhanced Driver's License not available in Montana
• NEXUS/Global Entry beneficial for frequent crossings
• Distance to major Canadian cities varies by location

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Enhanced Driver's License not available in Montana
• I-94 registration now required for 30+ day stays

Big Sky Advantages

Montana offers exceptional value with no sales tax, low property taxes, affordable living costs, and unparalleled natural beauty. Perfect for those seeking outdoor lifestyle with tax advantages.

Key Contacts & Resources