TIN ComplianceA resource from TIN Comply
Backup withholding
No
Nonresident payments
Yes, 6%
Threshold
$166
Forms
RW-1
State withholding

Montana backup withholding and nonresident contractor withholding

Montana’s regime is about minerals, not contractors. MCA 15-30-2536 through 15-30-2547 require remitters to withhold 6 percent of net mineral royalties (oil, gas, coal, metals) paid to any royalty owner, resident or nonresident, individual or entity, with publicly traded partnerships and tax-exempt organizations exempt on notification. Payments under $166 a period or $2,000 a year may be skipped. Withholding is paid on Form RW-1 quarterly and reconciled on Form RW-3 with Forms 1099-MISC or 1042-S by January 31. No backup withholding or nonresident contractor rule was found.

State backup withholding not requiredNonresident non-wage withholding requiredSources checked November 1, 2026Updated November 1, 2026
In this guide
  1. Status
  2. Withholding on non-wage payments to nonresidents
  3. What Montana does not require
  4. Pass-through entity withholding
  5. From the source
  6. What to confirm
  7. Sources

Status

State backup withholdingNot required (inferred)

Inferred: no provision found in the saved statute or guide

Non-wage payments to nonresidentsRequired

Primary source (statute, regulation or agency publication saved in full)

Federal backup withholding under IRC 3406 (24 percent on a missing or mismatched TIN) applies in Montana exactly as everywhere else; this page covers only what the state adds. The 50-state tables put Montana next to its neighbours, and the Montana 1099 filing page covers whether the state wants its own copy of the 1099.

Withholding on non-wage payments to nonresidents

Applies to
Mineral royalty payments (oil, gas, coal, metals and other Montana-source minerals) to any royalty owner, resident or nonresident, individual or entity, by a remitter (producer or payer of royalties). Not nonresident-specific and not for contractors or entertainers.
Threshold
Withholding may be foregone on payments under $166 per period or under $2,000 if paid annually
Rate
6% of the net royalty (Box 2 of 1099-MISC/1042-S)
Statute
MCA 15-30-2536 through 15-30-2547; ARM 42.17.6xx; DOR Mineral Royalty Withholding Tax Guide
Withholding return
Form RW-1 (Mineral Royalty Withholding Tax Payment Voucher) quarterly
Exemption certificate or waiver
Notification of exempt status by publicly traded partnerships and tax-exempt organizations; DOR notifies remitters whether they must withhold
Payee statement
Federal Form 1099-MISC or 1042-S (pro forma if not federally required)
Due dates
RW-1 payments by the last day of the month after each quarter (April 30, July 31, October 31, January 31); RW-3 annual reconciliation with 1099-MISC/1042-S by January 31 (automatic extension to February 28)
Exceptions
Publicly traded partnerships and tax-exempt organizations on notification; below-threshold payments; DOR may exempt remitters

What Montana does not require

State backup withholding

No state backup withholding: MCA 15-30-2501 et seq. (wage withholding); DOR mineral royalty guide is the only non-wage withholding regime found

Basis: Inferred: no provision found in the saved statute or guide.

Pass-through entity withholding (out of scope)

Montana requires pass-through entities to withhold for nonresident owners (15-30-3313; Form PT-WH). Entity-level withholding on distributions to nonresident owners is a duty of the entity, not of a payer, and is not covered on this page.

From the source

“tax rate applies to all types of royalty owners”

Montana DOR, Mineral Royalty Withholding Tax Guide, read November 1, 2026

What to confirm

  • The statute text could not be captured (the code site is script-rendered); the facts come from the Department of Revenue’s mineral royalty withholding page and guide.

Sources

Each source below was read and saved on November 1, 2026; the page is built from the saved text. Statutes are cited to the section; department pages and publications to their title and, where shown, revision date.

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