Montana Sales Tax Guide 2025: An Extensive Overview

Are you navigating the complexities of Montana’s taxation system? Whether you’re a resident, business owner, or planning a move to the Treasure State, understanding how to comply with Montana’s unique tax structure can help you save time and money. This guide will walk you through everything you need to know about Montana’s tax system, including its lack of sales tax and other essential details.

Montana Sales Tax

Montana sales tax law is unique as the state does not impose a general sales tax, making it a tax-friendly environment for consumers. Instead, Montana focuses on property, income, and specific-use taxes to generate revenue.

Montana Sales Tax Rate

Montana’s base sales tax rate is 0.00%, as the state does not impose a general sales tax on goods or services.

Jurisdiction	Sales Tax Rate
State Tax	0.00%
County Tax	0.00%
City Tax	0.00%
Special Tax	0.00%
Combined Tax	0.00%

For more information on city-based tax rates in Montana check out Kintsugi’s City Level Sales Tax Guides.

Montana Sales Tax Calculator

Montana does not impose a general sales tax, which simplifies transactions for businesses and consumers within the state. However, businesses must still account for use tax when purchasing taxable goods for out of state for use in Montana.

Scenario:

Imagine you own a retail store in Billings, Montana, and purchase $10,000 worth of furniture from a supplier in another state where no sales tax was charged. Since Montana imposes a use tax on such purchases to maintain tax fairness, you need to calculate and remit the use tax.

Step 1: Understand Montana’s Use Tax Rate

Montana’s use tax rate matches its lack of sales tax, so most goods are exempt. However, certain specific items, like rental vehicles or lodging, may have specialized taxes. In this case, no general use tax applies.

Step 2: Check for Specialized Tax Applicability

If your purchase falls under categories subject to specific taxes, such as accommodations, liquor, or rental vehicles, determine the rate and apply it to the purchase. For example, Montana applies a 4% lodging facility sales and use tax for overnight accommodations.

Step 3: File the Appropriate Tax Return (if Applicable)

If the purchased item is taxable under Montana's specific-use tax rules:

Tax Owed = Item Price × Tax Rate

For a $1,000 hotel room charge subject to the lodging tax:

Tax Owed = 1,000 × 0.04 = 40

File the tax return using forms provided by the Montana Department of Revenue to report and remit the tax.

Final Answer:

In this example, because furniture is not subject to Montana’s specific-use taxes, no tax is owed. However, had the item been in a taxable category like lodging or rental vehicles, you would apply the relevant rate and remit the tax accordingly.

Additional Considerations:

Out-of-State Sales: Montana businesses selling to customers in states with sales tax must collect and remit taxes based on the customer’s location if economic nexus thresholds are met.
Property Tax: Businesses in Montana are responsible for property taxes, which are a significant source of state revenue.
Industry-Specific Taxes: Certain businesses, such as those in alcohol sales or accommodations, must comply with specialized tax rates and rules.

By understanding Montana’s tax framework, businesses can ensure compliance and avoid unnecessary penalties.

FAQ on Sales Tax in Montana

What's the Sales Tax Rate for Great Falls Montana?

The sales tax rate in Great Falls, Montana, is 0%, as Montana does not impose a general sales tax.

What is the Tax rate in Montana?

Montana’s tax rate for general sales is 0%, but specific taxes, such as lodging and rental car taxes, may apply in certain cases.

How to Calculate Sales Tax in Montana?

Since Montana has no general sales tax, there is no calculation needed. For specific-use taxes (e.g., lodging), multiply the item price by the applicable rate, such as 4% for lodging taxes.

Sales Tax Nexus in Montana

Montana’s base sales tax rate is 0.00%, but businesses selling specific taxable goods or services, such as accommodations or rental vehicles, may need to register for and collect specialized taxes.

Effective Date	Threshold	Includable Sales (Gross, Retail, or Taxable)	When You Need to Register
N/A	No threshold for general sales tax	Taxable Sales (e.g., lodging, rental cars)	Immediately upon engaging in taxable activities.
Ongoing	Any physical presence in Montana	Retail or Taxable Sales	Upon establishing a physical presence or providing taxable services.

FAQ on Sales Tax Nexus in Montana

What is the Sales Tax Nexus in Montana?

Montana does not have a general sales tax, so there is no sales tax nexus. However, businesses with a physical presence or engaging in activities subject to specific-use taxes (e.g., lodging or rental car taxes) may establish a tax obligation.

Montana Sales Tax Exemptions

Montana does not impose a general sales tax, but specific-use taxes like lodging and rental car taxes do apply. Certain exemptions are available for government entities and specific transactions under these specialized tax categories.

Category	Exemption Description
Government Purchases	Sales to federal government agencies are exempt from lodging sales tax.
Lodging for Government Employees	Lodging used for official government purposes is exempt from the lodging tax when direct billing applies.
Nonprofit Organizations	Certain nonprofit entities may qualify for exemptions from specific-use taxes.
Religious Organizations	Purchases made by qualifying religious organizations may be exempt from certain specialized taxes.

FAQ on Sales Tax Exemptions in Montana

How do I Apply for a Montana Sales Tax Exemption Certificate?

Montana does not have a general sales tax, so businesses generally do not require a sales tax exemption certificate. However, for exemptions under specific taxes (e.g., lodging tax), you may need to complete the relevant forms through the Montana Department of Revenue portal.

How do I Apply for a Montana Sales Tax Exemption?

To apply for specific tax exemptions in Montana, such as lodging or rental vehicle tax exemptions, complete the necessary forms provided by the Montana Department of Revenue. For more detailed steps, check this blog on Montana tax exemptions.

What is the Montana SaaS Sales Tax?

Montana does not impose a sales tax on SaaS (Software as a Service) or digital products due to its lack of a general sales tax. Learn more about it in this blog on Montana SaaS sales tax.

What is the Sales Tax on Clothing in Montana?

Montana has no sales tax, so clothing is not subject to any additional tax. For more details, visit this blog on Montana clothing tax.

Is Montana Sales Tax Exempt?

Yes, Montana is one of the few states with no general sales tax. However, specific-use taxes, such as lodging and rental car taxes, may still apply to certain transactions.

Does Montana have Sales Tax on Clothing?

No, Montana does not impose sales tax on clothing or any general retail items.

What Items are Exempt from Montana Sales Tax?

Since Montana has no general sales tax, all items are exempt. Although, specific-use taxes may apply to categories like lodging, rental vehicles, or telecommunication

Montana Sales Tax Filing

Montana businesses are not required to file general sales tax returns due to the lack of a state sales tax. Businesses collecting specific-use taxes must file returns based on the schedule set by the Montana Department of Revenue.

What are the Montana Sales Tax Filing Requirements?

Businesses that collect specific-use taxes, such as lodging tax, must file returns electronically through the Montana Department of Revenue based on their assigned frequency.

How do I File Sales Tax in Montana?

If your business collects specific-use taxes, file returns through the Montana Department of Revenue’s online portal. Include all required details, such as taxable sales and tax collected.

When is Sales Tax Filing Due in State of Montana?

Sales tax filings for specific-use taxes are generally due monthly, quarterly, or annually, depending on your business’s assigned filing schedule. Deadlines are provided upon registration.

How can I Apply for Montana Sales Tax Registration?

Montana does not impose a general sales tax, so most businesses do not need to register for traditional sales tax collection. However, businesses engaged in activities subject to Montana’s specific-use taxes, such as lodging or telecommunications taxes, must register with the Montana Department of Revenue.

Visit the Montana Department of Revenue Website: Navigate to the Montana Department of Revenue to review applicable taxes and access the registration portal for specific-use taxes.
Determine If Your Business Needs to Register: Identify whether your business activities require registration. Examples include:
- Lodging facility sales tax
- Rental vehicle tax
- Telecommunications excise tax.
Access the Online Registration Portal: Click on the registration link provided on the Montana Department of Revenue website. This will redirect you to the appropriate platform for creating an account.
Create an Account: Set up an account by providing your business name, email address, and contact information. Verify your email to activate the account.
Log In to the Registration Portal: Use your newly created credentials to log in. From the dashboard, select the option to register for a specific tax type.
Provide Business Information:
- Legal business name and structure (LLC, sole proprietorship, etc.)
- Federal Employer Identification Number (FEIN) or Social Security Number for sole proprietors
- Business location and mailing address
- Type of taxable activities your business will engage in (e.g., lodging, rental cars).
Include Additional Locations (if applicable): If your business operates in multiple locations, provide information for each site subject to specific-use taxes.
Submit the Application: Review all details for accuracy. Submit the completed application through the portal.
Receive Confirmation: After processing, you will receive confirmation of your registration, including a Montana tax identification number for the specific tax type.
Begin Collecting and Filing Taxes: Once registered, start collecting taxes for applicable activities (e.g., lodging tax). File returns and remit payments through the Montana Department of Revenue by the assigned due dates.

By following these steps, businesses can comply with Montana’s specific-use tax requirements. For further assistance, visit the Montana Department of Revenue Tax information page.

Montana Sales Tax Due Date

Montana-specific tax returns, such as lodging tax, are generally due on the last day of the month following the reporting period.

Filing Frequency	Due Date
Monthly	Last day of the following month
Quarterly	Last day of the month following the quarter
Annually	January 31 of the following year

What Day is Montana Sales Tax Due?

Montana-specific tax returns, such as lodging tax, are generally due on the last day of the month following the reporting period.

What is the Penalty for Filing Sales Tax Late in Montana?

Late filing penalties for Montana’s specific-use taxes include interest on unpaid balances and potential late fees. The exact penalty depends on the type of tax and filing delay. Contact the Montana Department of Revenue for specifics.