🇺🇸 Montana: SaaS Is Not Taxed
🟢 No, Montana does not tax SaaS. Here's what SaaS founders and freelancers need to know about selling software to customers in Montana.
SaaS Sales Tax Rate
Exempt
Want to save on state income tax? See how much you could save by moving to a zero-tax state.
Take the Free Quiz →SaaS Sales Tax in Montana
Montana has no sales tax.
Since SaaS is not taxable in Montana, you do not need to collect or remit sales tax on SaaS sales to customers there. This simplifies your compliance significantly.
However, keep in mind that tax rules evolve. States regularly reconsider their stance on taxing digital products and services. It's worth monitoring Montana's tax updates, especially if you have significant revenue from customers there.
Other Tax Considerations
Even though SaaS isn't taxed in Montana, other types of digital products (downloaded software, digital goods, streaming services) may have different treatment. Always verify the specific category of your product.
International Sellers
If you're selling from outside the US (EU, UK, or elsewhere) to customers in Montana:
Since Montana doesn't tax SaaS, you don't need to worry about sales tax collection here. Focus your compliance efforts on states that do tax SaaS.
Frequently Asked Questions
Does Montana charge sales tax on SaaS?
No. Montana does not currently charge sales tax on SaaS. Montana has no sales tax.
What is the sales tax rate in Montana?
Montana does not have a statewide sales tax.
Do I need economic nexus in Montana to charge sales tax?
Since Montana does not tax SaaS, economic nexus for SaaS sales tax is not a concern here. However, other tax obligations may still apply.
How do I invoice a customer in Montana?
Since SaaS is not taxed in Montana, you do not need to add sales tax to your invoice. Simply invoice the net amount.
I'm an EU/UK seller — do I need to charge Montana sales tax?
Since Montana does not tax SaaS, you do not need to collect sales tax on SaaS sales to customers there, regardless of where your business is based.
Check Your Cross-Border Tax Obligations
Use our free calculator to find the exact tax rate, registration requirements, and invoice wording for any cross-border sale.
Try the Tax Calculator →Want to Save on State Income Tax?
Nine US states charge zero income tax. See how much you could save by changing your domicile.
Take the Tax Savings Quiz →