State of Montana Sales Tax The 2016 Montana State Sales Tax

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What is the 2016 Montana Sales Tax Rate?

Montana Sales Tax Rate

0.00%

2016 Montana state sales tax
Exact tax amount may vary for different items

The Montana state sales tax rate is 0%, and the average MT sales tax after local surtaxes is 0%.

While Montana has no statewide sales tax, some municipalities and cities (especially large tourist destinations) charge their own local sales taxes on most purchases. There are additional taxes on tourism-related businesses such as hotels and campgrounds (7%) and rental car companies (4%).

If you are a Montana business owner, you can learn more about how to collect and file your Montana sales tax return at the 2016 Montana Sales Tax Handbook .

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Montana Sales Tax Exemptions

Montana does not exempt any types of purchase from the state sales tax. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.

Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. Other items including gasoline, alcohol, and cigarettes are subject to various Montana excise taxes in addition to the sales tax.

In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. The MT sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. Montana's sales tax rates for commonly exempted items are as follows:

Groceries: 0% Clothing: 0% Prepared Food: 0% Prescription Drugs: 0% Non-Prescription Drugs: 0%
Montana sales tax for a restaurant meal
$100 Restaurant Dinner
Montana sales tax for groceries
$100 of groceries
Montana sales tax for clothing
$100 in clothes
Montana sales tax for general consumer products
$100 of consumer products
$0.00 sales tax
$100.00 total
$0.00 sales tax
$100.00 total
$0.00 sales tax
$100.00 total
$0.00 sales tax
$100.00 total

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Montana Sales Tax Exemption Certificate

Unlike a Value Added Tax (VAT), the Montana sales tax only applies to end consumers of the product. Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a Montana Sales Tax Exemption Form to buy these goods tax-free.

Companies or individuals who wish to make a qualifying purchase tax-free must have a Montana state sales tax exemption certificate, which can be obtained from the Montana Department of Revenue . On making an exempt purchase, Exemption Certificate holders may submit a completed Montana Sales Tax Exemption Form to the vendor instead of paying sales tax.

Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full Montana sales tax code) can be downloaded from the Montana Department of Revenue here .

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Montana Sales Tax Calculator

 Sales Tax Calculator
Purchase Details:
$ in zip code Enter the zip code where the purchase was made for local sales tax

Whenever you make a purchase at a licensed Montana retailer, your sales tax will be automatically calculated and added to your bill. To lookup the sales tax due on any purchase, use our Montana sales tax calculator.

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Montana Use Tax [View Main Article]

If you buy goods and are not charged the Montana Sales Tax by the retailer, such as with online and out-of-state purchases, you are supposed to pay the 0% sales tax (less any foreign sales tax paid) for these items yourself as the Montana Use Tax.

Your are expected to voluntarily list your liable purchases on a Montana Use Tax Return, which should be attached with payment to your Montana Income Tax Return. Historically, compliance rates with with the Montana Use Tax have been low.

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Montana Local Sales Taxes

Montana does not allow local jurisdictions like cities or counties to collect a local sales tax. The Montana state sales tax of 0% is applicable statewide. You can view the sales tax rates for various cities in Montana here.


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