Who collects Montana sales tax on dropshipped orders?

You do, as the retailer. Your dropshipper invoices you at wholesale; you invoice the customer at retail. Collection duty follows the retail transaction — that's you.

Will my dropshipper charge me Montana sales tax on the wholesale?

Only if your dropshipper has Montana nexus AND you can't provide a valid MT resale certificate. Obtain resale certificates for every state where your dropshipper operates.

Does dropshipping trigger economic nexus in Montana?

Yes, your retail revenue into Montana still counts toward the Montana's economic nexus rules threshold, independent of how fulfillment happens.

Montana Sales Tax for Dropshipping Sellers — 2026 Guide

Updated 2026-04-27

Dropshipping sales tax in Montana

Dropshipping into Montana raises three distinct tax questions. First, you (the retailer) have to collect and remit Montana sales tax on your retail sales if you exceed the state's economic nexus rules (pending data verification). Second, your dropship supplier may charge YOU sales tax on the wholesale invoice if they have Montana nexus and you can't present a valid resale certificate. Third, the marketplace (if any) handles its own tax on facilitated transactions.

Montana applies 0.00% as the base state rate; no local add-ons apply.

Resale certificate rules

If you have a Montana sales tax permit, you can usually issue your dropshipper a MT resale certificate to avoid being charged sales tax on the wholesale invoice.
Some states (notably California, Florida, Massachusetts, Tennessee, and a few others) require the buyer to hold an IN-STATE registration before issuing a resale certificate — a home-state certificate isn't enough.
Streamlined Sales Tax (SST) states accept the uniform Multistate Certificate; others have their own forms.

Common dropshipping mistakes in Montana

Treating your dropshipper's nexus as if it obligates them to collect from the end customer — no, they invoice you at wholesale; you invoice the customer at retail. Only the retail transaction is subject to collection duty.
Forgetting that your retail revenue into Montana still counts toward the economic nexus threshold, independent of the dropshipping arrangement.
Not keeping resale certificates on file — your supplier will charge you tax (and you'll have already collected from the customer), eroding margin.

Montana nexus note

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.

What to do next

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.

Frequently asked questions

Who collects Montana sales tax on dropshipped orders?: You do, as the retailer. Your dropshipper invoices you at wholesale; you invoice the customer at retail. Collection duty follows the retail transaction — that's you.
Will my dropshipper charge me Montana sales tax on the wholesale?: Only if your dropshipper has Montana nexus AND you can't provide a valid MT resale certificate. Obtain resale certificates for every state where your dropshipper operates.
Does dropshipping trigger economic nexus in Montana?: Yes, your retail revenue into Montana still counts toward the Montana's economic nexus rules threshold, independent of how fulfillment happens.