Car Sales Tax in Montana
Montana is one of the few states without sales tax for car purchases.
Written by Max Werner
Reviewed by Jessica Barrett
Montana has no statewide tax for car purchases. Additionally, most counties do not have a county or local sales tax.
Buying a car can be expensive—especially when you add up the insurance, inspections, and tax fees that aren’t included in the sticker price. However, Montanans are in luck. The Treasure State does not tax the sale of any vehicle at the state level.
This doesn’t mean you’re entirely in the clear regarding taxes. A few counties in Montana still impose a sales tax on new and used vehicle purchases. Want to know more? You’re already in the right place—this is the complete Montana sales tax guide from the top-rated
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How much is the car sales tax rate in Montana?
Montana has no statewide sales tax for vehicle purchases. Only a few counties enforce a local state tax, which is why Montana's average combined sales tax rate is only 0.002%.
Powder River, Richland, and Sheridan counties are home to the highest taxes in the state. Despite being in a state free from a blanket sales tax, residents there pay a rate of 5%.
How are car trade-ins taxed in Montana?
Although Powder River, Richland, and Sheridan counties apply sales tax to vehicle purchases, that amount does not apply to trade-in value. That means beyond avoiding a statewide tax rate, the total cost of your car purchase will be lower.
Here’s how it works: Let’s say you're buying a new
Jeep Wrangler Sport
for an asking price of $32,000. To do so, you’re going to trade in your current vehicle valued at $16,000. If your county tax rate is 5%, you’ll only be taxed $800 (instead of $1,600 without the trade-in).While trade-ins can save a chunk of taxable change, the same does not apply to dealer rebates or incentives. Even if your dealer offers you a $1,000 gift card for that new Jeep, you’ll still be taxed for the full price of the vehicle.
How to calculate sales tax on a car in Montana
With a 0% tax rate across most Montana zip codes, it’s easy to calculate the sales tax where you live. Explore the county or local website affiliated with your dealership’s location. You’ll be able to find the local tax rate (if there is one) and add it to the vehicle’s purchase price.
Key Takeaway Montana has no statewide sales tax, meaning you’ll just have to examine your county government website to calculate any tax rates.
How to estimate Montana tax, title, and registration fees
While Montana has no official statewide sales tax, you’ll still need to consider (and pay) and few additional fees including, but not limited to:
Here’s a breakdown of what most Montanan fees will cost:
Cost | Average cost |
|---|---|
Sales tax | 7.915% |
Title fee | $10.30 |
Plate transfer | $10 |
Documentation fee | $275 maximum |
Registration works a little differently in Montana. Here, vehicles four years or younger must pay an annual registration fee of $217. Those between five and 10 years old will pay $87. Vehicles older than 11 years can either pay $28 annually or a one-time $87.50 registration fee.
MORE: Is car insurance tax deductible?
How to find affordable car insurance in Montana
Sales tax in Montana may not be a requirement, but every vehicle must be adequately insured. Worry not, Montana drivers. The
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How much is sales tax on a used car in Montana?
Montana has no sales tax for vehicle purchases. This means you can expect to buy your used (in most counties) sales tax-free.
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