Montana is one of only four states that do not have a state sales tax (the others being Delaware, New Hampshire and Oregon). That puts it way ahead of states like Tennessee and Arkansas where taxes on the purchase of a $23,407 vehicle will run upward of $2,200; about $440 a year over five years.
States that do not charge a sales tax include New Hampshire, Oregon , Delaware, Montana and Alaska. Where You Register the Vehicle : You can only avoid this tax if you purchase the car in a no sales tax state and then register the vehicle in that state as well.
To start, it’s important to explain the biggest reason why so many exotic cars have Montana license plates: Montana has no sales tax. Zero. Zip. Rural, comfortable, relaxed Montana , where there’s no sales tax, and registering that very same McLaren P1 costs you something like $200 in registration fees.
Montana is one of five states, along with Delaware, Alaska, Oregon and New Hampshire, that don’t have a general sales tax . Rather than sales taxes , Montana depends more on income taxes to raise the money the state government needs to operate.
Montana is moderately tax – friendly for retirees. For starters, the state has no sales tax , which lowers living costs for everyone. It also has relatively low property taxes . On the other hand, many retirees pay taxes on Social Security retirement benefits, which is fully exempt in most other states .
Montana has a progressive state income tax , with a top rate of 6.9%. Montana has only a few other types of taxes. There is no sales tax in the state and property taxes are below the national average.
The primary concerns in driving a recently- purchased vehicle home from another state are being able to insure the vehicle and getting the necessary paperwork to legally drive the car until it is registered in the owner’s state . In other situations, a buyer may have to obtain coverage before driving the car home .
The typical annual car insurance rate in Arizona is $349 less expensive than the average expense in California . The exact cost may vary, depending on your coverage level, driving and insurance history, and your auto insurance company.
Multiply the sales tax rate by your taxable purchase price. For example, if the total of state, county and local taxes was 8 percent and the total taxable cost of your car was $18,000, your sales tax would be $1,440.
Fees collected at the time of permanent registration are: $87.50 registration rate . $10 Montana Highway Patrol Salary and Retention Fee. county tax, $9 optional state parks support, certain special plate fees and, for light trucks, the gross vehicle weight (GVW) fees .
The LLC registers and plates the vehicle in Montana . You pay no sales or use tax and then bring your car to whatever state you live in and drive the vehicle with tax-free impunity. Sales tax is generally due in the state of registration . Your vehicles will be registered in Montana which has no sales tax.
Before you go in to the treasurer’s office to register the vehicle , here are some of the things you will need to gather: A completed vehicle registration application. Auto insurance card. The car’s title with your name on it. The odometer reading on the car . Titling and license plate fees.
The five states with the lowest average combined rates are Alaska (1.76 percent), Hawaii (4.44 percent), Wyoming (5.34 percent), Wisconsin (5.46 percent), and Maine (5.50 percent).
The Montana (MT) state sales tax rate is currently 0%.
Set your sights on some new landscapes with our list of the best cities in Montana. Missoula . Missoula , Montana | Photo Copyright: Brad Lane. Helena . Helena | Photo Copyright: Brad Lane. Bozeman . Bozeman . Kalispell. Kalispell, seen from Jewel Basin Hiking Area | Photo Copyright: Brad Lane. Butte. Billings . Great Falls.