Montana Sales Tax for Digital Products Sellers — 2026 Guide

“Digital products” covers eBooks, audiobooks, video downloads, online courses, streaming subscriptions, digital artwork, stock photos, music, and similar non-physical delivered goods. Whether Montana taxes them depends on how the state classifies the product — “specified digital products”, “electronic transfer of canned software”, or a service. Rules vary more than for physical goods.

If taxable in Montana, the product is subject to 0.00% state rate plus any applicable local rate based on the buyer's address.

• Specified digital products. Many states (adopting Streamlined Sales Tax definitions) tax SDPs — digital audio/video/books.
• Online courses and education. Most states treat live-instruction courses as non-taxable services but treat pre-recorded course access as taxable digital products. Watch for this split if you sell both.
• Subscriptions. Bundled subscription boxes with mixed digital + physical content are often taxed as a single taxable bundle — you can't allocate across taxable and non-taxable components unless the invoice separately states them.
• B2B vs B2C. Some states exempt B2B digital products when bought for resale or when the buyer has a direct-pay permit. Keep certificates on file.

• Treating all digital products the same across states — eBook tax treatment differs from SaaS, which differs from streaming.
• Bundling digital + physical goods without a line-item breakdown. Most states tax the full bundle at the physical rate if not itemized.
• Applying origin-based sourcing (your state's rate) when most states source digital products to the buyer's billing or shipping address.

Montana has no general state or local sales tax. Sellers shipping to Montana customers do not need to register or collect. Exceptions: certain resort-area local option taxes and accommodations/rental car taxes apply to specific industries.

Read the full Montana overview for thresholds, filing frequency, marketplace facilitator rules, and registration links. Use the nexus calculator to check whether you have crossed the threshold. For background on the post-Wayfair economic nexus framework, see the pillar guide.