Montana — Sales & Use Tax

Montana does not impose a general statewide sales or use tax on tangible personal property or most services.

Source: Montana Department of Revenue – Sales Tax Guidance

The Montana Constitution limits any future general statewide sales tax or use tax to a rate not exceeding 4%. This constitutional limit was approved by voters as Constitutional Amendment No. 27 on November 8, 1994. The limit does not prohibit a sales tax outright, but the Montana Legislature has not enacted one.

Source: Montana Constitution Article VIII, Section 16

Montana is one of five U.S. states with no general statewide sales tax, the others being Alaska, Delaware, New Hampshire, and Oregon.

## Selective sales and use taxes

Although Montana imposes no general sales tax, the state does impose selective sales and use taxes on limited categories:

Lodging. Montana imposes a combined 8% tax on accommodations and campgrounds for stays of less than 30 consecutive days, consisting of a 4% lodging facility use tax (Title 15, Chapter 65, MCA) and a 4% lodging facility sales tax (Title 15, Chapter 68, MCA).

Source: Mont. Code Ann. § 15-68-102

"Accommodations" means short-term rentals, sleeping rooms, camping spaces, or other units offered for overnight lodging periods of less than 30 days to the general public for compensation, including hotels, motels, campgrounds, resorts, bed and breakfast facilities, vacation homes, timeshares, and similar properties. Low-cost facilities whose average daily accommodation charge is less than 60% of the state lodging reimbursement rate are exempt.

Source: Mont. Code Ann. § 15-68-101

Rental vehicles. Montana imposes a 4% sales and use tax on the base rental charge for rental vehicles rented for 30 days or less. The tax applies to light vehicles, motorcycles, motorboats, sailboats, and off-highway vehicles rented without a driver or operator and designed to transport 15 or fewer passengers.

Source: Mont. Code Ann. § 15-68-102

Local resort taxes. Certain designated resort communities may impose local resort taxes up to 3% on retail sales of goods and services within the resort area. These taxes are authorized under Title 7, Chapter 6, Part 15, MCA and are distinct from the statewide selective taxes.

Source: Montana Code Annotated §§ 7-6-1501 through 7-6-1551

## Practical implications

For sellers of tangible personal property and general services: No registration or collection obligation exists for general sales tax. Montana businesses selling tangible goods or performing services (other than lodging or vehicle rental) do not collect Montana sales tax from customers.

For remote sellers shipping into Montana: Remote sellers have no obligation to register for or collect a general Montana sales tax, regardless of sales volume. The U.S. Supreme Court's decision in South Dakota v. Wayfair, 138 S. Ct. 2080 (2018), does not affect Montana because the state imposes no general sales tax.

Source: Montana Department of Revenue – Sales Tax Guidance

For Montana sellers shipping to other states: Montana businesses that sell to customers in states with sales tax may be required to collect and remit those states' sales taxes if the business meets the destination state's economic nexus thresholds. Each state sets its own thresholds and rules.

Montana imposes a combined 8% tax on accommodations and campgrounds for stays of less than 30 consecutive days. This rate consists of two taxes: a 4% lodging facility use tax (Title 15, Ch. 65, MCA) and a 4% lodging facility sales tax (Title 15, Ch. 68, MCA). Both are imposed on the purchaser but collected and remitted by the seller.

Taxable base and allocation for bundled charges (ARM 42.14.202)

When a single bundled price covers lodging and nontaxable amenities or services (such as meals, spa packages, or entertainment), Montana law directs how the allocation for purposes of the 8% lodging facility sales and use tax is to be conducted:

• Separately stated nontaxable charges: If a bill itemizes charges for meals, entertainment, transportation, or similar exclusions—and those are not required for securing lodging—they are excluded from the lodging tax base.

• Bundled (lump sum) charges: If nontaxable items are not itemized (i.e., presented in a single lump sum with lodging), ARM 42.14.202 mandates:
• The seller must allocate either:
• 25% of all charges per day per person to lodging (and tax this amount), or
• Another allocation substantiated by a reasonable, documented methodology (such as a contract or itemized agreement), subject to Department of Revenue audit.
• If the seller cannot substantiate an alternative allocation with proper documentation, the 25% default applies.

Acceptable documentation for alternative allocations:

• Itemized contracts or detailed booking agreements stating the portion attributable to lodging and to nontaxable items.
• Invoices reflecting negotiated rates or separate values.
• Cost accounting records or third-party pricing for comparable standalone lodging.

The Department of Revenue may scrutinize any alternative method on audit. Acceptable records are typically contemporaneous and based on arms-length transactions or transparent cost standards. Unsupported or post-hoc estimates generally do not suffice; failing adequate documentation, the 25% default is mandatory.

Recordkeeping: Sellers using any allocation method other than the default must retain clear, written records in anticipation of audit.

Source: Montana Administrative Rule ARM 42.14.202

All other tax base, rate, exemption, and coverage provisions described in this section remain unchanged.

Not yet human confirmed.

Persons who wish to engage in business within Montana that is subject to the lodging facility sales and use tax must obtain a permit before engaging in business. The Montana Department of Revenue issues a separate numbered permit for each location in which the person maintains an office or place of business within Montana.

Source: Mont. Code Ann. § 15-68-401

Lodging facility sales and use tax returns must be filed quarterly. Returns and payment for each calendar quarter are due on or before the last day of the month following the quarter in which the taxable transaction occurred. For example, the return for Q1 (January–March) is due April 30; Q2 (April–June) is due July 31; Q3 (July–September) is due October 31; and Q4 (October–December) is due January 31.

Source: Mont. Code Ann. § 15-68-502

Montana imposes a 4% sales and use tax on the base rental charge for rental vehicles rented for 30 days or less. Rental vehicles subject to the tax include automobiles, vans, SUVs, trucks rated at one ton or less, trucks or trailers with a gross vehicle weight under 22,000 pounds, motorcycles, quadricycles, off-highway vehicles, motorboats, and sailboats. Vehicles designed to carry more than 15 passengers, farm vehicles, machinery, equipment, and vehicles rented with a driver are not subject to the tax.

Source: Mont. Code Ann. § 15-68-102

Persons engaging in business in Montana that are subject to the rental vehicle sales and use tax are required to obtain a seller's permit for each business location. The Montana Department of Revenue issues a separate, numbered permit for each location in which a business maintains an office or place of business within Montana. Each permit is valid only for the person to whom it is issued and for the transaction of business at the designated place, and must be conspicuously displayed at all times. Permits are not transferable.

Source: Mont. Code Ann. § 15-68-401

## Filing frequency and due dates

A person making sales of rental vehicles in Montana must file rental vehicle sales and use tax returns quarterly. Returns and tax payments for each calendar quarter are due on or before the last day of the month following the quarter in which the taxable transaction occurred (e.g., the return for Q1 (January–March) is due April 30). Separate returns are required for each permitted business location. The statute provides that the department may adopt rules providing for seasonal seller’s permits for accommodations and rental vehicles, but does not prescribe specific due dates for such permits in the Code.

Returns may be computer-generated and electronically filed only in accordance with rules provided by the department.

Source: Mont. Code Ann. § 15-68-502

## Vendor allowance

A person filing a timely return under § 15-68-502 may claim a quarterly vendor allowance for each permitted location in the amount of 5% of the tax determined to be payable to the state—not to exceed $1,000 per permitted location, per quarter. The allowance is available only when both the return and payment are filed on time; if a return or payment is late, no vendor allowance may be claimed for that quarter.

Source: Mont. Code Ann. § 15-68-510

Montana law exempts certain low-cost lodging facilities from the state's lodging facility sales and use taxes if their average daily accommodation charge (ADAC) for single-occupancy rooms does not exceed 60% of the state employee lodging reimbursement rate as established under Mont. Code Ann. § 2-18-501.

Dollar Value for 2026: For the period October 1, 2025 through September 30, 2026 (the fiscal period governing most of 2026), the Montana Department of Administration has set the standard in-state lodging reimbursement rate at $110 per night. Sixty percent of this rate is $66 per night. Accordingly, any lodging facility with an average daily accommodation charge at or below $66 per night during this period qualifies for the exemption from the Montana lodging facility sales and use taxes.

Statutory mechanism:

• The exemption is codified at Mont. Code Ann. § 15-68-101(1)(b), referencing the annual in-state lodging reimbursement rate under Mont. Code Ann. § 2-18-501.
• The reimbursement rate may be changed by administrative policy and should be verified annually using official Department of Administration (DOA) schedules to confirm the current threshold for future periods.

Calculation Example:

• State reimbursement rate (October 2025–September 2026): $110/night
• 60% of $110 = $66/night (ADAC exemption threshold)

Caution / review status: Facilities must confirm the applicable reimbursement rate each period; this section uses the published DOA rate for state fiscal year 2026. If rates change, the statutory formula (60% × reimbursement rate) applies.

Source: Mont. Code Ann. § 15-68-101(1)(b) Source: Mont. Code Ann. § 2-18-501 Source: Montana Department of Administration – Travel Summary 2025-2026

Montana applies statutory penalties and interest for late filing or late payment of lodging facility sales and use taxes under its general tax administration rules. These penalties and interest amounts are established by Mont. Code Ann. § 15-1-216 and incorporated for lodging taxes by Mont. Code Ann. § 15-68-514.

Late filing penalty:

• A return filed after its required due date incurs a penalty of 5% of the tax due for each month or fraction of a month, not to exceed 25%.
• The statute imposes a minimum penalty of $50 for late filing, even when no tax is due. (See § 15-1-216(3): “There is a $50 minimum penalty even if no tax is owed.”)

Late payment penalty:

• If tax is not paid when due (but a return is filed timely), a penalty of 1.5% of the unpaid tax is assessed for each month or fraction of a month, up to a maximum of 15%.

Interest on late payment:

• Interest accrues on any late payment of tax at the greater of 8% per year or the average prime rate published by the Federal Reserve System plus 3%, simple interest. The Department sets and publishes the applicable rate annually; for recent years, this rate is typically determined on January 1.

Combined application:

• Both penalties may apply on the same delinquency if a return is late and payment is late.
• These rules are statewide and apply to all taxes administered by the Department of Revenue, unless a specific tax statute provides differently. The reference to lodging facility sales and use taxes is in § 15-68-514, which adopts § 15-1-216 for penalties and interest.

Authority and guidance:

• The Montana Department of Revenue’s “Lodging Facility Sales and Use Tax Guide” (2023) reflects these penalty and interest rules in its compliance section (see pp. 7–8), confirming their application to lodging tax returns.

Source: Mont. Code Ann. § 15-1-216 Source: Montana Department of Revenue – Interest and Penalties Source: Montana Department of Revenue, “Lodging Facility Sales and Use Tax Guide,” 2023, p. 8

Not yet human confirmed.

Montana's lodging facility sales and use taxes, imposed under Title 15, Chapters 65 and 68 of the Montana Code Annotated (MCA), generally apply to accommodations provided to the public for stays of less than 30 days. However, there are targeted exemptions relevant to sales to the federal government and, in certain circumstances, to federal employees.

Exemption for Direct Federal Government Payment: Both the 4% lodging facility use tax and the 4% lodging facility sales tax do not apply to lodging charges that are billed directly to and paid by the United States government. This is clarified in Montana Department of Revenue administrative guidance, but the core authority arises from the interpretation of the Montana Code in light of federal supremacy and the explicit exemptions for certain direct payments by government entities. The exemption is NOT automatic for all government-related travel—only when the federal government itself is the purchaser and makes payment directly.

Federal Employee Travel and Government Credit Cards: The exemption does NOT extend to lodging expenses paid by federal employees with personal funds, personal credit cards, or individually billed government travel cards (such as GSA SmartPay® Individual Billed Accounts or "IBA" cards), even if the employee is later reimbursed. Only centrally billed travel accounts/cards (CBA) that are paid directly by the U.S. government qualify for the exemption. Sellers are responsible for verifying the payment method:

• Centrally Billed Account (CBA): Tax-exempt if invoice is paid directly by the agency (e.g., most GSA "blue" cards).
• Individually Billed Account (IBA): NOT exempt if paid by employee, even if reimbursed later by federal government.

Documentation Required for Exemption: Sellers must retain documentation of the direct payment by the federal government. Copies of centrally billed card documentation or a direct government voucher are typically required should the Department audit for support.

For authoritative details and required documentation, refer to the Montana Department of Revenue’s Lodging Facility Sales and Use Tax Guide and consult published FAQs on the agency’s website.

Source: Montana Administrative Rules, ARM 42.14.409 Source: Montana Department of Revenue, “Lodging Facility Sales and Use Tax Guide,” 2023, pp. 3–4

Not yet human confirmed.

Montana law authorizes certain designated resort communities, resort areas, and resort area districts to impose a local-option resort tax of up to 3% on retail sales of specific goods and services within the geographic limits of the resort jurisdiction. This authority is established under Mont. Code Ann. §§ 7-6-1501 through 7-6-1551. The local resort tax is distinct from Montana’s statewide lodging facility and rental vehicle sales taxes, both in its scope and its administration.

Obligation to collect: physical presence required

As of 2026, the Montana resort tax statutes require businesses with a physical presence (e.g., a storefront, office, or delivery within the jurisdiction) to register with the local authority, collect resort tax on taxable sales, and remit these taxes according to local rules. The law does not contain an express economic nexus threshold, remote seller provision, or marketplace facilitator obligation for resort taxes comparable to those in other states’ general sales tax regimes following South Dakota v. Wayfair (2018).

Remote and online sellers

There is no statutory provision or official Department of Revenue guidance extending collection or registration obligations for the resort tax to remote or online sellers (including marketplace facilitators) that do not have a physical presence in the resort area. Local ordinances administered by the city or resort area only require in-area sellers (or those making deliveries in the ordinary course of business within the boundaries of the resort community or area) to collect and remit resort taxes. As of July 4, 2026, there has been no published enforcement activity or regulatory announcement extending the local resort tax obligation to purely remote sellers or out-of-state marketplaces making online sales to resort community customers with no in-jurisdiction presence or delivery.

Practical result

If a remote seller or a marketplace facilitator has no storefront, office, or delivery operations within the boundaries of a Montana resort community or area, the local resort tax is not currently imposed on its online or remote transactions by statute or local ordinance. Businesses considering sales into Montana tourist destinations should verify local requirements, as local authorities administer the tax and may interpret physical presence according to their own ordinances, but there is no official state extension of the tax to remote sellers as of 2026.

Source: Mont. Code Ann. §§ 7-6-1501–1551 Source: Montana Department of Revenue – Local Resort Taxes

Not yet human confirmed.

Owners renting Montana lodging accommodations or vehicles through a registered marketplace facilitator (such as Airbnb, VRBO, or Turo) are generally relieved of direct tax collection and remittance obligations for those transactions when the facilitator is registered, collects, and remits Montana’s lodging or rental vehicle taxes. This framework is established in Montana Department of Revenue (DOR) guidance and policy following Senate Bill 52 (2021) (see Lodging Facility Sales and Use Tax Guide, p. 5).

Obligation to confirm facilitator collection However, property or vehicle owners remain responsible for tax on all charges that are part of the taxable sales price—including cleaning fees, service charges, or ancillary fees—unless the marketplace facilitator collects and remits Montana sales and lodging taxes on those specific amounts. If the facilitator fails to collect on a particular taxable charge, DOR states the owner may remain liable for the uncollected tax, penalties, and interest. Thus, owners should confirm with the marketplace that all taxable amounts are covered in its collection program. The DOR’s official guidance clarifies: “If the marketplace facilitator chooses not to collect and remit taxes on all taxable charges, the lodging facility owner or operator may still be responsible for any unpaid taxes.” (p. 5)

Taxable fees and components Montana law includes all amounts paid by a guest (including fees for pets, cleaning, extra guests, late checkouts, and required services) in the sales price subject to tax, unless an explicit exemption applies. Marketplace facilitators are required to collect tax on these components unless excluded by the listing agreement or platform policy. Owners should not assume all fees (such as pass-through service or cleaning charges) are automatically taxed merely because a booking occurs on the platform.

Documentation and proof of compliance Owners must retain documentation demonstrating reliance on the marketplace facilitator to collect tax. Recommended records include:

• Transaction and payout statements from the facilitator showing tax collection and remittance on all taxable amounts,
• Marketplace contracts or communications confirming coverage of all fees,
• Itemized bookings and invoices reflecting tax status of each charge.

In the event of DOR audit, these records are critical to establish reasonable reliance on the facilitator and to limit the owner’s liability if any shortfall is discovered.

If a booking is made outside the marketplace (e.g., direct rental), the owner is directly and fully liable for collection and remittance of all applicable taxes.

Source: Montana Department of Revenue, Lodging Facility Sales and Use Tax Guide, 2023, p. 5 & 14

Not yet human confirmed.

When both filing and payment are late for Montana lodging facility or rental vehicle taxes, the taxpayer is subject to both the late-filing and late-payment penalties—each assessed independently—and interest accrues daily on the unpaid tax from the original due date. All three charges stack and apply concurrently.

Penalty calculation structure in 2026:

• Late filing penalty: The greater of $50 or 5% of the tax due for each month or fraction of a month a return is late, up to a maximum of 25% of the tax due. This applies even if no tax is due, per Mont. Code Ann. § 15-1-216(3).
• Late payment penalty: For lodging facility and rental vehicle taxes, a separate penalty of 1.5% per month or fraction thereof is imposed on any unpaid tax, to a maximum of 15%, alongside the late filing penalty, per Mont. Code Ann. § 15-1-216(8)(a)-(c).
• Interest: Interest accrues daily from the original due date at an annual rate set by the DOR—10.25% for 2026 (0.028082% per day). This applies to all taxes covered by § 15-1-216, including lodging facility and rental vehicle taxes, per DOR guidance.

Statutory cross-references:

• Lodging facility use tax: Mont. Code Ann. § 15-65-115 mandates penalty and interest must be assessed as provided in § 15-1-216.
• Rental vehicle sales and use tax: DOR implementation and guidance, and the cross-reference in Mont. Code Ann. § 15-68-514 (general application of § 15-1-216), confirm the same framework.

Enforcement practice:

• Both penalties run independently and are not reduced if both apply: e.g., a return filed two months late and paid two months late triggers two months of both penalties, plus interest for the same period on the unpaid tax amount.
• The Department may publish illustrative examples or tables with penalty calculations; however, as of July 2026, no recent agency publication includes a full penalty/interest stacking calculation table for these specific taxes. The penalty stacking logic is referenced in DOR's “Interest and Penalties” guidance.

Source: Mont. Code Ann. § 15-1-216 Source: Mont. Code Ann. § 15-65-115 (lodging facility use tax) Source: Mont. Code Ann. § 15-68-514 (rental vehicle tax incorporating penalty rule) Source: Montana Department of Revenue – Interest and Penalties (2026)

Not yet human confirmed. Recent DOR publications confirm the stacking logic but do not provide a worked calculation table as of July 2026.