Does Montana Have Sales Tax? What New Residents Actually Pay

Last updated: October 2026

Part of our Moving to Montana guide →

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Short answer: no. Montana has no general statewide sales tax. The Montana Department of Revenue says so plainly: “Montana does not have a general-use sales tax” (MT DOR). There’s no general local sales tax either. The local taxes you’ll see are resort taxes in designated tourist towns and county cannabis taxes. Groceries, clothes, furniture, electronics and cars are all bought without sales tax at the register.

A few things are still taxed at the point of sale. The ones you’re most likely to run into are:

• Hotels and short-term rentals: 8% state lodging tax.
• Rental cars and moving trucks rented in Montana: 4%.
• Recreational cannabis: 20% state tax, plus up to 3% in many counties.
• Resort towns such as Whitefish, Big Sky, West Yellowstone and Red Lodge: a local resort tax of 3% or 4% on lodging, restaurants, bars, ski areas and “luxury” items.

Montana makes up for the missing sales tax with income and property taxes, so we cover those below too.

This article is general information, not tax, legal, or financial advice. Tax rates and rules change. Check the linked official sources or talk to a tax professional about your own situation.

Montana’s point-of-sale taxes at a glance

Lodging: 8%

When you book a hotel, motel, campground, dude ranch, B&B or vacation rental, Montana adds a combined 8%: a 4% lodging facility use tax plus a 4% lodging sales tax (MT DOR). Airbnb-style platforms are required to collect it. If you rent the same unit for 30 continuous days or more, the stay is exempt. That’s worth knowing if you’re staying in a furnished rental while you house-hunt.

Some cities also charge a Tourism Business Improvement District (TBID) fee on lodging. The Department of Revenue notes that the TBID fee is separate from both the 8% lodging tax and resort taxes (MT DOR Lodging Tax Guide, PDF).

Planning a park trip? Our Glacier National Park trip planner, where to stay near Glacier and visiting Yellowstone from Montana guides cover lodging in the gateway towns.

Rental cars and moving trucks: 4%

Rental vehicles pay a 4% tax on the base rental charge. That includes time and mileage charges, accident insurance, extra-driver fees, and add-ons like car seats. Fuel, airport fees and one-way drop charges aren’t included in the base (MT DOR). The tax also covers trucks and trailers under 22,000 lb gross vehicle weight used to move personal property, so a moving truck you rent in Montana is taxed. A truck you rent in another state follows that state’s rules. For the full cost of a move, see How Much Does It Cost to Move to Montana?.

Renting a car on a Montana trip? The 4% applies to the base rental charge. Compare rental cars at Bozeman, Kalispell, Missoula or Billings.

Cannabis: 20% (adult-use) or 4% (medical)

Adult-use cannabis is taxed at 20% and medical at 4%. Counties can add up to 3% more on either or both. Gallatin, Missoula, Yellowstone, Flathead and Lewis & Clark counties all levy 3% on adult-use sales, according to the Department of Revenue’s county table (MT DOR). Missoula and Flathead counties don’t levy it on medical sales.

Resort taxes: the “sales tax” you’ll notice in tourist towns

State law lets small towns with tourism-based economies ask voters to approve a resort tax of up to 3%, plus up to 1% more for infrastructure (MCA 7-6-1503). Incorporated towns must have fewer than 5,500 people, and unincorporated areas fewer than 2,500 (MT DOR).

The tax applies to lodging, restaurants and other food service, bars, destination ski and recreation sites, and “luxuries.” Each town defines luxuries in its own ordinance; it typically covers things like souvenirs, sporting goods and gift items. Necessities are generally exempt. West Yellowstone’s code, for example, leaves out unprepared food, medicine, utilities, gasoline, and lodging stays longer than 30 consecutive days (West Yellowstone Municipal Code ch. 3.12).

A note on conflicting lists. The Department of Revenue’s own resort tax page shows every community at 3%. It also lists Virginia City and Cooke City and leaves out Big Mountain and Columbia Falls (MT DOR). The department says it doesn’t administer resort taxes and that its page “may be inconsistent with local laws.” For that reason, the table above uses each town’s own page wherever one exists.

Planning a stay in a resort town? Room rates in Whitefish and Big Sky carry the 8% lodging tax plus the local resort tax. Compare hotels in:

• Whitefish
• Big Sky

What Montana taxes instead: income and property

Income tax (2026 and 2027)

Montana has two income tax brackets. A 2025 law (HB 337) widened the lower bracket and cut the top rate for 2026 and 2027 (MT DOR):

Source: Montana DOR, HB 337. These rates apply to Montana taxable income, not gross pay. Long-term capital gains are taxed separately at 3.0% or 4.1%.

Property tax: new rates for primary homes in 2026

Montana calculates property tax in two steps: market value × tax rate = taxable value, then taxable value × local mill levy = your tax. The Department of Revenue sets market value, the Legislature sets the rates, and local governments and voters set the mills (MT DOR).

Starting in 2026, a home you live in as your primary residence (or rent long-term) gets lower, tiered rates. Second homes and short-term rentals pay a flat 1.90% (MT DOR):

Source: Montana DOR, 2026 Property Tax Information.

These percentages are not your effective tax rate. They produce your taxable value, which is then multiplied by your local mills. For example, a $450,000 primary home would have a taxable value of $3,520.80 ($378,000 × 0.76% + $72,000 × 0.90%). Your actual bill depends on your local mill levy, which you’ll find on the county tax bill. To get the lower rate, you must live in the home at least 7 months of the year. New owners generally have to apply, so ask your county or check the DOR page above when you buy.

Vehicle registration: no sales tax on cars, but annual fees

Buying a car in Montana carries no sales tax. Registration fees instead depend on the vehicle’s age (MT MVD; MCA 61-3-321):

On top of that rate, your county may add a local option tax of up to 0.7% of the vehicle’s depreciated value (MCA 61-3-537), plus smaller administrative and plate fees. The MVD has an online fee estimator. New residents must title and register their vehicles within 60 days of establishing residency (MT MVD).

Shopping online and out of state

Montanans generally don’t owe sales tax on online purchases shipped to Montana, because the state has no sales tax. You’ll still pay other states’ taxes on things like out-of-state hotels and rental cars (MT DOR). If you shop in person in a neighboring state, that state’s sales tax applies, and Montana has no “exemption certificate” for residents.

The bottom line for new residents

Day to day, you’ll pay no sales tax on most purchases. Where you will see taxes is on lodging, rental vehicles, cannabis, and almost everything you buy in a resort town. Income tax rates for 2026 are 4.7% and 5.65%. Property tax depends heavily on whether the home is your primary residence and on local mills. Planning a move? Start with Moving to Montana in 2027: Costs, Best Towns & Timeline and Cost of Living in Bozeman, MT.

Sources

1. Montana Department of Revenue, Sales Tax Guidance: https://revenue.mt.gov/taxes/general-sales-tax
2. Montana DOR, Lodging Facility Sales and Use Tax: https://revenue.mt.gov/taxes/miscellaneous/lodging-facility
3. Montana DOR, Lodging Facility Sales and Use Tax Guide (PDF): https://revenuefiles.mt.gov/files/KBA-Doc/KB0013531-Lodging-Facility-Sales-and-Use-Tax/Lodging-Facility-Sales-and-Use-Tax-Guide.pdf
4. Montana DOR, Rental Vehicle Tax: https://revenue.mt.gov/taxes/miscellaneous/rental-vehicle-tax
5. Montana DOR, Cannabis Tax: https://revenue.mt.gov/taxes/miscellaneous-taxes-and-fees/cannabis/
6. Montana DOR, Local Resort Tax: https://revenue.mt.gov/taxes/miscellaneous/local-resort-tax
7. Montana Code Annotated 7-6-1503 (resort tax rate limit): https://mca.legmt.gov/bills/mca/title_0070/chapter_0060/part_0150/section_0030/0070-0060-0150-0030.html
8. Montana Resort Tax Association, Communities Overview: https://mtresorttax.org/communities-overview/
9. Big Sky Resort Area District FAQ: https://resorttax.org/frequently-asked-questions/
10. Town of West Yellowstone, Resort Tax Information: https://www.townofwestyellowstone.com/resort-tax-information/
11. West Yellowstone Municipal Code, Chapter 3.12 Resort Tax: https://ecode360.com/50312380
12. City of Red Lodge, Resort Tax FAQ: https://www.cityofredlodge.net/faqs/361
13. Gardiner Resort Area District, Important Dates: https://www.gardinerresorttax.com/important-dates
14. City of Whitefish, Resort Tax: https://www.cityofwhitefish.gov/422/Resort-Tax
15. Big Mountain Resort Area District FAQ: https://bigmountainrad.org/faq/
16. City of Columbia Falls, Resort Tax: https://www.cityofcolumbiafalls.org/1222/Resort-Tax
17. Montana DOR, HB 337 income tax changes for 2026–2027: https://revenue.mt.gov/news/recent-news/HB-337
18. Montana DOR, Understanding Montana Property Taxes: https://revenue.mt.gov/property/understanding-mt-property-taxes
19. Montana DOR, 2026 Tax Information for Montana Property Owners: https://revenue.mt.gov/property/property-tax-changes/2026-property-tax-information
20. Montana MVD, Light Vehicle Registration and Fees: https://mvdmt.gov/vehicle-registration/light-vehicle-registration-and-fees/
21. Montana MVD, Vehicle Registration (new residents): https://mvdmt.gov/vehicle-registration/
22. MCA 61-3-321 (registration fees): https://mca.legmt.gov/bills/mca/title_0610/chapter_0030/part_0030/section_0210/0610-0030-0030-0210.html
23. MCA 61-3-537 (local option vehicle tax): https://mca.legmt.gov/bills/mca/title_0610/chapter_0030/part_0050/section_0370/0610-0030-0050-0370.html
24. Montana Department of Transportation, Motor Fuel Tax Rates: https://www.mdt.mt.gov/business/fueltax/rates.aspx

Cole Bennett edits MontanaHelp, a research-driven guide to moving to and living in Montana. Articles cite official and public sources and are updated as rules and data change. AI tools help research and draft them; a person runs the editorial process and spot-checks one article from each batch before it’s published.

AI tools helped research and draft this article. A person runs MontanaHelp’s editorial process and spot-checks one article from each batch before it’s published.