Montana Vehicle Sales Tax & Fees

Montana Car Sales Tax

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?

How Much Is Montana Sales Tax

As of 2026, 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 AlaskaDelawareNew 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.

Montana DMV & State Fees

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

Montana charges registration by the age of the vehicle, so a new car costs far more to register than an old one. These rates include the 3% administrative fee:

  • 4 years old or less: $217
  • 5 to 10 years old: $87
  • 11 years or older: $28
  • Permanent registration, 11 years or older: $87.50 once, and you never renew again

There are also fees added on top:

  • $10 Montana Highway Patrol Salary and Retention Fee
  • $5 Insurance Verification Fee on permanent registrations issued new plates
  • $12 title issuance fee for a light vehicle, $10 for a motorcycle or motor home
  • $12 new issue plate fee
  • County option tax, which varies by county

Watch the luxury fee if you are buying near the top of the market. A light vehicle ten years old or newer with an MSRP above $150,000 carries an $825 annual luxury tax. Motor homes above $300,000 pay $800. That is charged every year you register it, not once.

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.

Montana EV Rebates & Incentives

Montana does not currently offer a state EV rebate. There is no federal credit either. The federal EV tax credit ended on September 30, 2025, so a Montana buyer today gets no purchase incentive from either level of government.

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

Frequently Asked Questions

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.

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.

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.

It depends on the age of the car. Registration is $217 for a vehicle four years old or less, $87 from five to ten years, and $28 at eleven years or older. Once a vehicle passes eleven years you can instead pay $87.50 for permanent registration and never renew it again. A light vehicle ten years old or newer with an MSRP over $150,000 also carries an $825 annual luxury tax.

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.

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

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