Montana Sales Tax

Montana does not have a state sales tax, but certain communities that attract visitors charge local resort taxes. These taxes are levied on the retail value of goods and services offered by lodging facilities, restaurants, destination recreational facilities such as ski resorts, and luxury products. The taxes collected are earmarked for public benefits such as tourism promotion.

Other taxes in Montana include a 4 percent vehicle rental tax and a 3.75 percent excise tax on retail telecommunications services that originate or terminate in the state. The telecommunications tax is earmarked for public safety. In addition, the state collects a 7 percent lodging facility use tax and a 2.5 percent special revenue fund that supports tourism promotion.

The state also imposes a 8.5 cent per-pack cigarette excise tax, and a 1.5 percent tax on moist snuff. Wholesalers may order cigarette tax stamps through the TransAction Portal. If you owe taxes, the state’s Department of Revenue advises that you file your returns and pay your penalties promptly. The department also offers a penalty waiver if you can show reasonable cause for filing or paying late, such as circumstances out of your control.

Montana Tobacco and Cigarette Tax

Montana has a tobacco tax, imposed on various tobacco products at different rates:

Cigarettes: $1.70 per pack of 20 cigarettes. For packages other than 20 cigarettes, the tax is 1/20th of the tax on a 20-pack for each cigarette.

Other tobacco products: 50% of the wholesale price, except for premium cigars and moist snuff.

Premium cigars: The lesser of 50% of the wholesale price or 35 cents per cigar.

Moist snuff: 85 cents per ounce, with proportional rates for packages less than or greater than 1 ounce.

It’s important to note that these are state-level taxes. Some localities within Montana might have additional tobacco taxes, so the total tax you see on tobacco products could vary depending on your location.

Montana Local Resort Taxes

Some localities and communities in Montana have the authority to impose a resort tax, typically not exceeding 3%, on the retail value of goods and services sold by specific businesses like hotels, camping facilities, restaurants, and bars within the designated resort area. 

Montana Business Taxes

Businesses that operate in Montana are responsible for paying business taxes, such as withholding and natural resource taxes. Depending on their business activity in the state, they may also be liable for other types of taxes. Montana is one of the least regressive states when it comes to taxes on lower-income households.

Despite the fact that Montana does not have a state sales tax, the South Dakota v. Wayfair decision has implications for the state. Businesses that have nexus in Montana can be required to pay use tax on online purchases made by their customers. They can voluntarily choose to file a Montana use tax return, or they can elect to remit the taxes on their individual income tax returns.