State guide · MT
Montana sales tax and property tax
No sales tax at the checkout counter, but hotel rooms, rental cars and a handful of tourist towns are a different story.
Facts read on official Montana pages on · Checked by Radif Partners · How we calculate
- State sales tax
- None
- Local sales taxes
- Yes, by address
- Groceries
- No state tax
- Clothing
- No state tax
- Median property tax
- $2,939
- Effective property rate
- 0.69% · #33 of 51
Montana has no general sales tax, so groceries, clothing, cars bought from a dealer and online orders delivered to a Montana address carry no state sales tax, and there is no use tax to report either. What replaces it is narrow and aimed mostly at visitors: a combined 8% lodging facility tax on hotels, motels, campgrounds and short-term rentals, a 4% tax on vehicles rented for under 30 days, and a voter-approved resort tax of up to 3% in a few small tourism towns such as Big Sky, West Yellowstone, Whitefish and Red Lodge. Property tax carries the weight instead. The median owner paid $2,939 in 2024 on a home worth $425,400 (Census ACS), an effective rate of 0.69%, ranked 33 of 51. Since 2026 a primary residence enrolled for the Homestead Reduced Tax Rate is taxed on tiered rates instead of the flat 1.90% charged on second homes and short-term rentals.
Total to pay
$100.00
Sales tax $0.00 · 0% of the price · Montana has no statewide sales tax
| Price before tax | $100.00 |
| State tax · 0% | $0.00 |
| Local tax · 0% | $0.00 |
| Total | $100.00 |
Rule applied: Montana has no statewide sales tax. How this is calculated.
Sales tax in Montana
A Montanan can buy a $1,200 laptop, a winter coat or a week of groceries and pay exactly the sticker price. The Department of Revenue states it plainly: there is no general sales tax, no sales tax exemption certificate and no consumer use tax, which also means a Montana resident cannot deduct another state's sales tax on the Montana income tax return. Shopping across a state line follows that state's rules for nonresidents, not Montana's.
Three taxes fill part of the gap, and all three land on travel. Lodging is the big one: 8%, made of a 4% lodging sales tax and a 4% lodging facility use tax, on hotel rooms, campgrounds and vacation rentals, including bookings made through short-term rental platforms, which have had to register and collect since Senate Bill 52. Four nights at $180 add $58 to a $720 stay; stays of 30 days or more are exempt. Renting a car for a week at $350 adds $14.00 under the 4% rental vehicle tax.
The third piece is local and rare. Communities designated by the Department of Commerce, with fewer than 5,500 residents (2,500 for an unincorporated area) and an economy built on tourism, may ask voters for a resort tax of up to 3%. It covers lodging, restaurant meals, bars, ski areas and goods classed as luxuries sold in the area, and at least 5% of the money must offset local property taxes. The Department of Revenue does not run it and has no address lookup, so a skier in Big Sky should read the receipt, or ask the town, before typing a local rate into the calculator above.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | none | yes | Montana does not have a general sales tax. Selective state taxes apply instead: a combined 8% lodging facility sales and use tax and a 4% rental vehicle sales and use tax. Designated resort communities may levy a voter-approved resort tax of up to 3%. |
| Groceries (food for home) | none | no | No general sales tax in Montana, so groceries carry no state sales tax. |
| Clothing | none | no | No general sales tax in Montana; clothing is not taxed by the state. |
| Prescription drugs | none | no | |
| Lodging (hotels, motels, campgrounds, vacation rentals, short-term rental platforms) | 8% | Combined lodging facility tax: 4% lodging sales tax + 4% lodging facility use tax. Stays of 30 continuous days or more are exempt. | |
| Rental vehicles (rented for less than 30 days) | 4% | 4% sales and use tax on base rental charges for cars, motorcycles, motorboats, off-highway vehicles and light trucks/trailers. |
Local sales taxes
Levied by Resort tax only, in incorporated resort communities or unincorporated resort areas designated by the Montana Department of Commerce and approved by local voters (7-6-1501 to 7-6-1507, MCA). It applies to lodging and camping, restaurants and food service, bars, destination ski or recreational facilities, and luxuries sold in the resort area.. Maximum resort tax rate is 3% (7-6-1503, MCA). A resort community must have fewer than 5,500 residents (2,500 for an unincorporated area) and an economy based mainly on tourism. At least 5% of resort tax revenue must offset municipal property taxes.
Sales tax holidays in 2026
No sales tax holiday: Montana has no general sales tax.
Worth knowing about Montana sales tax
- Montana has no sales tax exemption certificate. Residents shopping in another state must check that state's rules for nonresident exemptions. source
- The Montana Department of Revenue does not administer the local resort tax. The Department of Commerce designates resort areas, and local voters approve the rate, duration and allocation. source
- The DOR lists 10 current resort areas, including Big Sky, West Yellowstone, Whitefish and Red Lodge; the oldest resort tax (West Yellowstone) dates from 1986. source
- Short-term rental marketplaces and online hosting platforms must register and collect the 8% lodging taxes on stays they facilitate (Senate Bill 52). source
- HB 45, signed May 8, 2025, dedicates lodging facility use tax revenue to specific purposes and makes the emergency lodging program for victims of domestic violence or human trafficking permanent. source
Property tax in Montana
Montana builds the bill in two steps. The Department of Revenue appraises every home at market value and revalues residential land every two years. The Legislature then sets a tax rate, a percentage, that turns market value into taxable value, and the county, city, school district and other local levies apply their mills to that taxable value. Because local budgets are capped by state law, the mills move the opposite way from values: when taxable value climbs, fewer mills are needed to raise the same budget.
The 2025 Legislature rewrote the residential rates with HB 231 and SB 542. For 2026, an enrolled primary residence or long-term rental is taxed at 0.76% on the first $378,000 of market value, 0.90% up to $756,000, 1.10% up to $1,511,999 and 1.90% above $1,512,000, while a second home, a short-term rental or an empty residential lot pays a flat 1.90% on its whole value. For a $500,000 house that is used as a cabin rather than a residence, the difference in taxable value is large enough to show up in every mill.
At the Census median ratio of 0.69%, a $400,000 home pays about $2,764 a year. To keep the reduced rate, the owner must live in the home at least seven months a year, be current on taxes and enroll with the Department of Revenue at homestead.mt.gov; owners who took the 2025 rebate in the same home were enrolled automatically. A buyer whose home was not enrolled for 2026 pays at 1.90% and can claim the difference back between January 1 and May 31, 2027. Bills come in two halves, due November 30 and May 31, or in seven monthly payments for a primary residence.
Property tax on a home in Montana
Typical bill per year
$2,940
| Per month | $245 |
| Median effective rate in Montana | 0.69% |
| Median bill paid | $2,939 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Montana |
|---|---|
| Median home value (owner-occupied) | $425,400 |
| Median real estate taxes paid | $2,939 |
| with a mortgage | $3,143 |
| without a mortgage | $2,674 |
| Effective rate (tax ÷ value) | 0.69% |
| Rank by effective rate (1 = highest) | 33 of 51 |
| Rank by median bill | 25 of 51 |
How the taxable value is set
The Department of Revenue values all taxable property at 100% of market value. Tax = market value x tax rate (set by the Legislature) = taxable value, then taxable value x mill levy. Residential, commercial and agricultural/forest land are revalued every 2 years (15-7-111, MCA). For 2026, primary residences and long-term rentals use tiered rates: 0.76% on the first $378,000 of market value, 0.90% from $378,001 to $756,000, 1.10% from $756,001 to $1,511,999 and 1.90% above $1,512,000. Second homes, short-term rentals and vacant residential lots pay a flat 1.90%. Who levies the tax: Local: counties, cities and towns, school districts and other local taxing jurisdictions set mill levies; the Department of Revenue sets market values and the Legislature sets the tax rates (percentages) that convert market value into taxable value. County treasurers collect the tax.
Payment calendar: Half of the tax is due by 5 p.m. on November 30 (or within 30 days after the tax notice is postmarked, if later), and the other half by 5 p.m. on May 31. Owners of a primary residence can use an optional schedule of seven monthly payments from November 30 to May 31. Late payments draw interest at 5/6 of 1% a month plus a 2% penalty.
Other property tax relief
- Long-term Rental Reduced Rate. Homes rented to tenants as their residence for 28+ days at a time and at least 7 months a year get the same tiered reduced rate; LLC- or corporate-owned rentals also qualify. Multifamily long-term rentals pay a flat 1.10% in 2026. source
- Property Tax Assistance Program (PTAP). Reduces the tax rate on the home by 80%, 50% or 30% depending on income. Tax year 2027 limits: 2025 federal AGI up to $29,943 (single) or $40,131 (married/head of household). Apply by April 15. source
- Montana Disabled Veteran Assistance Program (MDV). For veterans rated 100% service-connected disabled (or an unmarried surviving spouse): reduction of 100%, 80%, 70% or 50% of the tax rate depending on income. Tax year 2027 income limits are $64,551 (single), $74,482 (married/head of household) and $56,276 (surviving spouse). source
- Montana Elderly Homeowner/Renter Credit. Refundable income tax credit of up to $1,150 for homeowners or renters aged 62+ with total household income under $45,000 who lived in Montana at least nine months. source
Worth knowing about Montana property tax
- The 2025 Legislature passed HB 231 and SB 542 to lower taxes on certain residential property. 2025 was a transition year, and about 80% of properties paid less tax in 2025 than in 2024. source
- Tax year 2025 used one tiered schedule for all residential property: 0.76% on the first $400,000 of market value, 1.10% up to $1.5 million and 2.20% above. source
- A one-time rebate of up to $400 on property taxes paid in 2025 was available to homeowners who lived in their home at least 7 months in 2024 (applications August 15 to October 1, 2025). source
- In 2026, commercial and industrial property is taxed at 1.50% below $2,274,000 of value (six times the estimated statewide median of $379,000) and at 1.90% above. source
- Land tax rates for 2026: qualified agricultural land 2.05%, non-qualified agricultural land 14.35% and forest land 0.37%. A home and its 1-acre homesite on that land get the tiered residential rate if it is a primary residence. source
- Mill levies move opposite to taxable value: local budgets are capped by state law, so when taxable value rises, the number of mills needed to fund the same budget falls. source
- A buyer whose new home was not enrolled can pay at the 1.90% rate for 2026 and then claim a refund of the difference between January 1 and May 31, 2027, if the home was the principal residence for 7 months. source