Sales Tax in Montana
In the United States, each state has its unique state laws. These laws define how a state administers its affairs. One of the matters such law stipulates is sales tax. As such, all states have a policy that defines the collection of sales. Nonetheless, in some jurisdictions, this levy is not collected at the state level. However, almost all local authorities collect this tax. Like other states, Montana has its own rule and regulations governing the collection and remittance of sale taxes. When a state’s tax is collected, this collection is usually made by retailers.
Montanan Sales Tax
If you live in Montana, you will pay less tax than many Americans. As a result, this state does not collect sales tax from its citizens. It is among five other states that do not collect sales tax. Although the state does not collect any sales levy, the sales tax rate stipulated in the state’s constitution stands at $4. Therefore, Montana primarily generates revenue from other levies, which include income tax and property tax.
Taxable Items and Services
Sales tax is not collected at the state or local level in Montana. However, there are a handful of locations within Montana that collect local sales taxes. Resort destinations like West Yellowstone, Red Lodge, and Big Sky collect local sales taxes that are referred to as resort tax. This levy usually does not exceed 3%. In addition, this tax is imposed on camping facilities, camping services, hotels, bars, restaurants, and other holiday facilities in the resort location. Apart from holiday goods and services, the state imposes a sales tax on medical marijuana and related products. Likewise, some tax applies to rental vehicles. In addition, levies on holiday-related goods and services, marijuana products, and rental vehicles are handled by the Montana Department of Revenue.
Exempted Items and Services
Since Montana does not charge a state or local sales tax, no items or services are exempted from the payment of sales tax.
Other Taxes in Montana
Montana has various other taxes that it imposes on individuals and entities. A personal income tax range between 1% to 6.75%. On the other hand, the average rate of corporate income is about 6.75%. For an individual, the income tax is 1% for any income with a maximum of $3,300. As the income increases, the amount of income tax also increases. With an income that exceeds $19,800, the tax rate becomes 6.75%. However, all these values are going to change in 2024. By that time, the income tax rates are going to become 4.7% and 6.5%. Individuals and families that earn less than $20,500 and $41,000 will pay 4.7% in income taxes. Likewise, persons and families that earn more than $20,500 and $41,000 will pay income tax at 6.5%. There is also an active property tax in Montana. This tax is one of the primary sources of income for the government. Likewise, the median real estate levy stands at about $800 for an asset valued at $100,000.
Other useful articles:
- Sales Tax by State in the United States
- How to Verify Tax Exempt Certificate
- Verify Tax Exempt Resale Certificate by State
- What is a Tax Exempt Status
- VAT Taxes in Europe
- Sales Tax Thresholds by State
- Sales Tax in California
- Sales Tax in Florida
- Sales and Use Tax in New York
- Texas Sales and Use Tax and Filing Dates
- Virginia Sales and Use Tax
- Illinois Sales and Use Tax and Filing Frequency
- Ohio Sales and Use Tax and When to File
- Sales and Use Tax in New Jersey
- Sales and Use Tax in North Carolina
- Sales and Use Tax in Pennsylvania
- Sales and Use Tax in Georgia
- Sales Tax in Alaska
- Sales Tax in Washington State
- Sales Tax in Hawaii
- Sales Tax in Montana