Montana Vehicle Sales Tax & Fees

Geoff Cudd

Purchasing a car in Montana is an exciting, new, and stressful event. Unfortunately, it’s also a very expensive one.

Along with the purchase price comes hidden fees and sales taxes.

Here’s what you can expect to pay when it comes to fees and taxes in the state of Montana.

How Much Is the Car Sales Tax in Montana?

As of 2022, Montana is one of five states that does not have a state sales tax. That means that you don’t have to pay any taxes when you purchase a vehicle in the state of Montana.

The other states include Alaska, Delaware, New Hampshire, and Oregon.

How to Calculate Montana Sales Tax on a Car

Since you don’t have to pay sales tax on any vehicle sales in Montana, there is no calculation needed.

For example, if you purchase a new truck for $45,000, the state sales tax will be $0.

Do I Have to Pay Sales Tax on a Used Car in Montana?

You do not have to pay any state sales tax when you purchase a used car in Montana.

For instance, if you purchase a used SUV for $35,000, the state sales tax will be $0.

Car Sales Tax for Trade-Ins in Montana

You guessed it, no tax on trade-ins in Montana!

For instance, if you purchase a truck for $50,000 and your trade-in is worth $15,000, then the full purchase price of your vehicle will be $35,000 with no tax on the final purchase price.

Car Sales Tax on Private Sales in Montana

Since there is no state sales tax, you do not have to worry about paying any taxes on your vehicle, no matter how you purchase the car.

For instance, let’s say that you want to purchase an SUV from a private owner for $30,000. The state sales tax would be $0.

Tax on Rebates & Dealer Incentives

While Montana does not have a state sales tax, there are DMV and state fees that you have to be aware of.

Here’s a look at the current DMV and state fees associated with vehicle sales:

Registration in Montana

The registration fee in Montana is $87.50. There are also additional fees that are added on top of the registration fee:

• $10 Montana Highway Patrol Salary and Retention Fee
• $5 Insurance Verification Fee
• $10 title transfer fee
• $10 license plate fee

Dealership Fees in Montana

The average dealership documentation fee in Montana is about $224. Documentation fees are the fees associated with a dealer filing the paperwork with the Montana DMV in order to legalize the deal.

When Sales Tax Is Exempt in Montana

Since there is no sales tax in the state of Montana, there are no exemptions needed in this case.

South Dakota EV Rebates & Incentives

Montana does not currently offer a state EV rebate. However, Montana residents are eligible for a $7,500 tax rebate from the Federal government on all-electric vehicle purchases.

Montana does have a 50% tax credit for any business or individual who converts a gas-powered vehicle into one that can accept alternative fuels or energy

Tax information and rates are subject to change, please be sure to verify with your local DMV. 

Frequently Asked Questions

What is the sales tax on cars purchased in Montana?

Montana is one of five states that does not have a state sales tax. This includes no state sales tax on the purchase of any vehicle.

Do I have to pay sales tax on a used car in Montana?

Since there is no state sales tax in Montana, you don’t have to pay any state sales tax when you purchase a new or a used vehicle.

Do I have to pay sales tax on a gifted car in Montana?

Since there is no state sales tax, there is no need to pay state taxes on a car that is gifted from one party to another.

How much is registration in Montana?

The registration fee in Montana is $87.50.

Does a trade-in reduce sales tax in Montana?

Since there is no state sales tax in Montana, you do not have to worry about whether a trade-in will reduce the state sales tax.

How can I avoid paying sales tax in Montana?

Since there is no state sales tax in Montana, there is no need to avoid paying sales tax in Montana.