🟢 No, Montana does not tax SaaS. Here's what SaaS founders and freelancers need to know about selling software to customers 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.
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.
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.
No. Montana does not currently charge sales tax on SaaS. Montana has no sales tax.
Montana does not have a statewide 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.
Since SaaS is not taxed in Montana, you do not need to add sales tax to your invoice. Simply invoice the net amount.
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.
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