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Basically the same question as this but now for SSMS 2016.
I've installed SSMS 2016 RC3 (alongside SSMS2012 & SSMS2014). I also installed Poor Man's formatter and copied the 11.0 folder as 12.0 and 13.0. When launching SSMS2014 I have the Tools > Format T-SQL Code menu-option. Which I don't have in SSMS106. Am I overlooking something?
Since RC2, they've moved to using Visual Studio 2015 shell for it. Plugin authors will need to update their plugins to support the newer APIs. - https://dba.stackexchange.com/a/134208
Also, take a look at ApexSQL Refactor. It's free and supports code-formatting as well.
At this time of writing, it currently doesn't work with SSMS2016 RC2 and above though. It also now supports SSMS 2016.This support was finally added today. Download the new SSMS Extension at http://architectshack.com/PoorMansTSqlFormatter.ashx