The Montana Sales Tax Calculator helps you quickly determine the local option tax on a purchase in resort areas and cities in Montana. You can calculate sales tax by adding it to a pre-tax amount or removing it from a total amount.
Montana Sales Tax Calculator
Calculate local option taxes for resort areas and cities in Montana with accurate rates
Total Amount
Tax Amount
Pre-Tax Amount
Total Tax Rate
Removing Tax: Pre-Tax = Amount ÷ (1 + Tax Rate)
The Montana Sales Tax Calculator helps you quickly determine the local option tax on a purchase in resort areas and cities in Montana. You can calculate sales tax by adding it to a pre-tax amount or removing it from a total amount.
When adding sales tax:
- Tax Amount = Pre-Tax Amount × Tax Rate
- Total Amount = Pre-Tax Amount + Tax Amount
When removing sales tax:
- Pre-Tax Amount = Total Amount ÷ (1 + Tax Rate)
- Tax Amount = Total Amount – Pre-Tax Amount
Montana does not have a state sales tax, but some resort areas and cities have local option taxes that apply to certain goods and services. This calculator helps you determine the local tax rate for specific locations in Montana.
Adding Sales Tax Example
Let’s say you want to calculate sales tax on a $100 product in Big Sky with a local tax rate of 3%:
Pre-Tax Amount = $100
Tax Rate = 3% or 0.03
Calculate the tax amount:
Tax Amount = $100 × 0.03 = $3.00
Calculate the total amount:
Total Amount = $100 + $3.00 = $103.00
Removing Sales Tax Example
Now, let’s say you have a total amount of $103.00 and want to calculate the pre-tax amount and tax in Big Sky:
Total Amount = $103.00
Tax Rate = 3% or 0.03
Calculate the pre-tax amount:
Pre-Tax Amount = $103.00 ÷ (1 + 0.03) = $103.00 ÷ 1.03 = $100.00
Calculate the tax amount:
Tax Amount = $103.00 – $100.00 = $3.00
No Local Tax Example
In most areas of Montana, there is no local tax. Let’s calculate tax on a $100 product in Bozeman:
Pre-Tax Amount = $100
Tax Rate = 0% or 0.00
Calculate the tax amount:
Tax Amount = $100 × 0.00 = $0.00
Calculate the total amount:
Total Amount = $100 + $0.00 = $100.00
Montana Local Option Tax Rates
Montana does not have a state sales tax, but some resort areas and cities have local option taxes. The local tax rate varies across the state, from 0% in most areas to 3% in resort communities.
State Rate
Resort Area Rate
City Rate
Combined Range
Montana Resort Areas and Their Tax Rates
| Resort Area | State Tax | Local Tax | Total Tax |
|---|---|---|---|
| Big Sky | 0% | 3% | 3% |
| Whitefish | 0% | 3% | 3% |
| West Yellowstone | 0% | 3% | 3% |
| Red Lodge | 0% | 3% | 3% |
| Columbia Falls | 0% | 3% | 3% |
| Gardiner | 0% | 3% | 3% |
| Livingston | 0% | 3% | 3% |
| St. Regis | 0% | 3% | 3% |
| Seeley Lake | 0% | 3% | 3% |
| Lakeside | 0% | 3% | 3% |
| Bozeman | 0% | 0% | 0% |
| Missoula | 0% | 0% | 0% |
| Kalispell | 0% | 0% | 0% |
| Helena | 0% | 0% | 0% |
| Great Falls | 0% | 0% | 0% |
| Billings | 0% | 0% | 0% |
| Butte | 0% | 0% | 0% |
| Silver Bow | 0% | 0% | 0% |
| Anaconda | 0% | 0% | 0% |
| Deer Lodge | 0% | 0% | 0% |
Montana Sales Tax Exemptions
Since Montana does not have a state sales tax, there are no state-level exemptions. However, for areas with local option taxes, certain items may be exempt from local taxes. These exemptions vary by location but commonly include:
- Groceries: Most food for home consumption is exempt from local taxes
- Prescription Drugs: All prescription medications are typically exempt from local taxes
- Medical Devices: Wheelchairs, prosthetics, and other medical devices are often exempt
- Farm Equipment: Machinery and equipment used in agricultural production
- Manufacturing Equipment: Equipment used directly in manufacturing
- Religious and Charitable Organizations: Purchases by qualifying organizations
- Government Agencies: Purchases by federal, state, and local governments
Montana Tax Structure
Montana is one of five states in the U.S. that does not have a general sales tax. Instead, the state relies on other forms of taxation:
- Income Tax: Montana has a progressive income tax with rates ranging from 1% to 6.75%
- Property Tax: Property taxes are the primary source of revenue for local governments
- Gasoline Tax: Montana taxes gasoline at $0.325 per gallon
- Cigarette Tax: Montana taxes cigarettes at $1.70 per pack
- Alcohol Tax: Montana taxes alcohol based on volume and alcohol content
- Lodging Tax: A 4% lodging tax applies to accommodations in Montana
- Vehicle Rental Tax: A 4% tax applies to vehicle rentals
Local option taxes in Montana are typically approved by voters in resort areas to fund infrastructure and services related to tourism.
Understanding Montana Taxes
No State Sales Tax
Montana is one of five states in the U.S. that does not have a general sales tax. This means that most purchases in Montana are not subject to state sales tax.
Local Option Taxes
Some resort areas and cities in Montana have local option taxes that apply to certain goods and services. These taxes are approved by local voters and are used to fund infrastructure and services related to tourism.
Tax Collection
In areas with local option taxes, the tax is collected by sellers at the point of sale and remitted to the local government. Sellers must register with the local jurisdiction and obtain a tax license before collecting tax.
Use Tax
Montana does not have a use tax since there is no state sales tax. However, residents who purchase items in other states and bring them back to Montana are not required to pay any additional tax.
Business Registration
Businesses operating in areas with local option taxes must register with the local jurisdiction and obtain a tax license. This is in addition to any state business licenses that may be required.
Filing Requirements
Businesses collecting local option taxes must file returns with the local jurisdiction. Filing requirements vary by location but are typically monthly, quarterly, or annually, depending on the business’s tax liability.
Montana Tax System for Businesses
Nexus Requirements
Since Montana does not have a state sales tax, there are no state nexus requirements for sales tax collection. However, businesses operating in areas with local option taxes must comply with local nexus requirements, which are typically based on physical presence in the jurisdiction.
Marketplace Facilitators
Montana does not have marketplace facilitator laws for sales tax since there is no state sales tax. However, marketplace facilitators may be required to collect local option taxes in resort areas if they have nexus in those jurisdictions.
Exemption Certificates
In areas with local option taxes, businesses purchasing items for resale can provide exemption certificates to sellers to avoid paying the local tax. The specific form and requirements vary by jurisdiction.
Shipping and Handling
In areas with local option taxes, shipping and handling charges may be taxable if they are part of the sale of taxable goods. The specific rules vary by jurisdiction.
Penalties and Interest
Local jurisdictions in Montana impose penalties for late filing and late payment of local option taxes. The penalties vary by location but typically include a percentage of the tax due plus interest.
Tax Calculation Services
Given the complexity of tracking local option taxes in Montana, many businesses use automated tax calculation services to ensure accurate collection and remittance of taxes in resort areas.