Montana Has No Sales Tax
Montana is one of only five states that does not impose a sales tax, giving residents and visitors more purchasing power on every dollar spent.
How Montana Funds Government Without Sales Tax
Without sales tax revenue, Montana relies on other sources. The state collects income tax with a top rate of 5.9%. The average property tax rate is 0.74% on homes with a median value of $393,300.
Montana has no state or local sales tax.
Montana Tax Overview
- Sales Tax
- None (0%)
- State Income Tax
- 5.9% top rate
- Avg Property Tax Rate
- 0.74%
- State Minimum Wage
- $10.55/hr
Related Montana Calculators
Frequently Asked Questions
Does Montana have a sales tax? + −
No. Montana is one of only five states that does not charge a state sales tax. This means purchases are not subject to state or local sales tax, giving residents and visitors more purchasing power. Montana has no state or local sales tax.
How does Montana fund state services without a sales tax? + −
Montana relies on other revenue sources to fund state services. The state collects income tax with a top rate of 5.9%, and also generates revenue through property taxes (average rate: 0.74%), excise taxes, fees, and natural resource revenue.
Is Montana a tax-friendly state? + −
Montana's lack of sales tax makes it more tax-friendly for consumer purchases. However, the state does levy income tax up to 5.9%, so overall tax burden depends on your income level. The average property tax rate is 0.74% on a median home value of $393,300.
Do I need to pay use tax in Montana? + −
Even without a sales tax, some states require a use tax on items purchased out-of-state for use within the state. Check Montana's specific requirements — the rules vary. In practice, enforcement of use tax on individual consumer purchases is limited.
What is the property tax rate in Montana? + −
The average effective property tax rate in Montana is 0.74%. On the median home value of $393,300, this translates to approximately $2,910 per year. Rates vary significantly by county and municipality.