Montana does not have a statewide sales tax

Montana is one of five states with no sales tax at all. You will not pay sales tax on most purchases in Montana, whether you buy in a store, online, or by mail order. This applies to clothing, groceries, electronics, furniture, and nearly everything else.

The only major exception is gasoline and diesel fuel, which carry a state excise tax instead of sales tax. That excise tax is built into the pump price and does not appear as a separate line item on your receipt.

Because Montana has no sales tax, local cities and counties cannot add a local sales tax either. Some states allow cities to collect their own sales tax on top of the state rate; Montana does not. What you see on the price tag is what you pay.

Key Takeaways

  • Montana has no statewide sales tax, so purchases of clothing, food, household goods, and most other items are not taxed at the register.
  • Gasoline and diesel fuel are taxed through a state excise tax that is included in the pump price, not shown separately.
  • No Montana city or county can add a local sales tax, so the price tag price is your final cost.
  • Online purchases shipped to Montana are generally not taxed unless the seller has a physical location in Montana.
  • Some specific services and activities — such as lodging, restaurant meals, and vehicle rentals — may be subject to different state taxes or local resort taxes.

How the lack of sales tax affects online shopping

When you order something online and have it shipped to Montana, you typically will not pay sales tax. This is true even if you order from a retailer based in another state that has sales tax. The tax rule depends on where the seller is located, not where you live.

If the online retailer has a warehouse, office, or other physical presence in Montana, they may be required to collect Montana tax. However, since Montana has no sales tax, there is nothing to collect. If the retailer has no presence in Montana, they have no obligation to charge you tax on a Montana delivery.

This means Montana residents often pay less for online purchases than residents of states with sales tax. A $100 item costs $100 in Montana but might cost $107 or $108 in a state with a 7 or 8 percent sales tax.

What taxes Montana does collect instead

Montana funds state and local government through income tax, property tax, and specific excise taxes on certain goods and activities. The state income tax rate ranges from 1 percent to 6.9 percent depending on your income level. Property tax is set by individual counties and varies widely across the state.

In addition to the fuel excise tax, Montana collects excise taxes on alcohol, tobacco, and marijuana. These taxes are built into the price you pay at the register. The state also collects taxes on vehicle purchases and vehicle registration.

Some cities and counties collect local resort taxes or bed taxes on hotel stays and short-term rentals. These are not sales taxes but are separate taxes on lodging. The rate and whether the tax applies depend on the specific city or county where you stay.

Restaurant meals and prepared food

Montana does not tax most food purchases. Groceries — raw ingredients you buy to cook at home — are not taxed. However, restaurant meals and prepared food are treated differently in some cases.

The state does not collect a sales tax on restaurant meals, but some local jurisdictions collect a local tax on food and beverage sales. This varies by city and county. Before eating out, you cannot assume the menu price is your final cost; a local tax may be added to your bill.

If you are unsure whether a specific city or county taxes restaurant meals, contact the city or county tax assessor's office. They can tell you the exact rate and what it applies to.

Vehicle purchases and rentals

When you buy a vehicle in Montana, you do not pay sales tax at the dealership. However, you will pay a vehicle tax when you register the vehicle with the Montana Department of Justice. This tax is based on the vehicle's value and is paid once at registration, not every year.

If you rent a vehicle in Montana, you will not pay sales tax on the rental fee. However, some cities and counties collect a local rental tax on car rentals. The rate depends on where you rent. You may also see additional fees for airport rentals, which are separate from any local tax.

Frequently Asked Questions

Do I pay sales tax if I buy something in Montana and take it to another state?

No. Sales tax is based on where the purchase happens, not where you use the item. If you buy in Montana, you pay Montana's rate — which is zero. Once you leave Montana, that purchase is complete and cannot be taxed again by another state.

What if I order from Amazon or another big retailer and have it shipped to Montana?

You will not pay sales tax on most items. Amazon and other major retailers have no obligation to collect Montana sales tax because Montana has no sales tax. The item arrives at the price shown before checkout.

Are there any products that are taxed in Montana?

Gasoline, diesel, alcohol, tobacco, and marijuana are taxed through excise taxes built into the price. Vehicles are taxed at registration. Some cities and counties tax restaurant meals and lodging. Most other purchases have no tax.

If I live near the Montana border, should I cross into another state to avoid sales tax?

No. Montana already has no sales tax, so you have nothing to avoid. Crossing into a neighboring state with sales tax would cost you more, not less. You pay the lowest tax by shopping in Montana.

Does Montana tax online services like streaming, software, or digital subscriptions?

Montana does not have a sales tax on digital services. Streaming subscriptions, software purchases, and similar digital goods are not taxed when delivered to a Montana address.