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Montana Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

By 

Updated 

December 28, 2023

 Reviewed by 

As one of only five states, joining Alaska, Montana, New Hampshire, and Oregon, with no statewide sales tax, Montana provides a uniquely attractive tax environment for ecommerce businesses. 

Operating in Montana comes with the benefit of having zero obligations for collecting and remitting sales tax. This "tax-free" status can be a key competitive advantage for ecommerce merchants located or headquartered in Montana. 

Let's explore the specifics of how having no state or local sales tax impacts ecommerce companies in Montana.

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Sales tax overview

State Tax Authority Montana Department of Revenue
State Sales Tax Rate 0%
Local Sales Tax Rates 0%
Sales Tax Threshold None
Website revenue.mt.gov
Tax Information Line (406) 444-6900

With no sales tax to collect, ecommerce sellers based in Montana enjoy simplicity and cost savings from the start. This also allows for marketing your products as "tax-free" to consumers.

No statewide sales tax in Montana

While Montana has no in-state sales tax, the rules are more complex for Montana sellers shipping products to customers in other states:

  • Montana companies do not collect sales tax on items sold to Montana addresses, whether selling online, in-store, via phone orders, etc.
  • For orders shipped to addresses in states with sales tax, the Montana seller may be required to collect and remit those state and local sales taxes based on that jurisdiction's economic nexus laws and thresholds.
  • Most states now have economic nexus laws that require out-of-state sellers to collect sales tax once they reach a certain sales volume or transaction threshold in that state.
  • So a Montana ecommerce merchant that starts selling and shipping products to another state needs to be aware of that state's nexus rules to know if and when sales tax collection obligations kick in.
  • This means a Montana seller may have to register with tax authorities in each state they ship to once they hit that state's economic thresholds for collecting sales tax.
  • While still avoiding Montana sales tax, multi-state sellers need to carefully follow changing regulations in each state they are shipping and selling products to.

With no embedded sales tax in prices, businesses can offer more value to consumers. Residents also keep more of their take-home pay.

Out-of-state sales tax collection requirements in Montana

The 2018 Supreme Court Wayfair decision mandated that states can require online sellers to collect sales tax, even without a physical presence in the state.

However, this does not affect businesses in Montana since there is no state or local sales tax to collect.

Out-of-state sellers have no obligation to calculate sales tax for shipments to Montana. The lack of sales tax continues to provide financial benefits to Montana residents.

Benefits of zero sales tax in Montana

The zero statewide and local sales tax rate make Montana highly attractive for starting or relocating a business. Key benefits include:

  • No sales tax compliance costs and obligations
  • Ability to advertise 100% sales tax-free pricing
  • More profit margin on sales without tax embedded
  • Savings are passed to customers to drive more sales

The lack of any sales tax in Montana saves money for businesses and customers alike. This tax advantage encourages economic growth and business investment in the state.

Sales tax overview

State Tax Authority Montana Department of Revenue
State Sales Tax Rate 0%
Local Sales Tax Rates 0%
Sales Tax Threshold None
Website revenue.mt.gov
Tax Information Line (406) 444-6900

With no sales tax to collect, ecommerce sellers based in Montana enjoy simplicity and cost savings from the start. This also allows for marketing your products as "tax-free" to consumers.

No statewide sales tax in Montana

While Montana has no in-state sales tax, the rules are more complex for Montana sellers shipping products to customers in other states:

  • Montana companies do not collect sales tax on items sold to Montana addresses, whether selling online, in-store, via phone orders, etc.
  • For orders shipped to addresses in states with sales tax, the Montana seller may be required to collect and remit those state and local sales taxes based on that jurisdiction's economic nexus laws and thresholds.
  • Most states now have economic nexus laws that require out-of-state sellers to collect sales tax once they reach a certain sales volume or transaction threshold in that state.
  • So a Montana ecommerce merchant that starts selling and shipping products to another state needs to be aware of that state's nexus rules to know if and when sales tax collection obligations kick in.
  • This means a Montana seller may have to register with tax authorities in each state they ship to once they hit that state's economic thresholds for collecting sales tax.
  • While still avoiding Montana sales tax, multi-state sellers need to carefully follow changing regulations in each state they are shipping and selling products to.

With no embedded sales tax in prices, businesses can offer more value to consumers. Residents also keep more of their take-home pay.

Out-of-state sales tax collection requirements in Montana

The 2018 Supreme Court Wayfair decision mandated that states can require online sellers to collect sales tax, even without a physical presence in the state.

However, this does not affect businesses in Montana since there is no state or local sales tax to collect.

Out-of-state sellers have no obligation to calculate sales tax for shipments to Montana. The lack of sales tax continues to provide financial benefits to Montana residents.

Benefits of zero sales tax in Montana

The zero statewide and local sales tax rate make Montana highly attractive for starting or relocating a business. Key benefits include:

  • No sales tax compliance costs and obligations
  • Ability to advertise 100% sales tax-free pricing
  • More profit margin on sales without tax embedded
  • Savings are passed to customers to drive more sales

The lack of any sales tax in Montana saves money for businesses and customers alike. This tax advantage encourages economic growth and business investment in the state.

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About the author

Deb Mukherjee

Deb is the head of marketing at Numeral. He has worked with the likes of Shopify and Wonderment and has helped countless ecommerce stores scale seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.

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