Montana vs North Dakota
Montana and North Dakota compare differently in the short vs long run: Montana costs $412 first year ($385 annual after), North Dakota costs $1,843 first year ($76 annual after).
Cost comparison
| Montana | North Dakota | Difference | |
|---|---|---|---|
| First-year total All-in cost to register a new $35,000 gas vehicle for the first time, including sales tax, title, and registration. | $412 | $1,843 | −$1,431 |
| Annual renewal (year 2+) Recurring annual cost after the first year — what you actually pay every year you own the car. | $385 | $76 | +$309 |
| Sales tax (one-time) Sales/use/excise tax owed at purchase on a $35,000 vehicle, using typical local rates. | $0 | $1,750 | −$1,750 |
| Combined sales tax rate State rate plus typical local rate (where applicable). | 0.00% | 5.00% | −5.00 pp |
| EV first-year total Same $35K scenario but as a battery electric vehicle, capturing EV-specific surcharges. | $542 | $1,963 | −$1,421 |
| EV annual renewal Recurring EV-ownership cost in year 2+. | $515 | $196 | +$319 |
| EV surcharge Annual EV-specific registration fee (zero in states without one). | $130 | $120 | +$10 |
How each state structures it
Montana
Montana is one of only FIVE US states with no general sales tax — making vehicle purchases tax-free regardless of price. Age-tiered registration is $217/year for new vehicles (0-4 years old), dropping to $87 (5-10 years) and $28 (11+ years). 45 of Montana's 56 counties impose a 0.5% county option tax on depreciated MSRP — about $175/year for a $35,000 new vehicle. A "luxury surcharge" of $825/year applies to vehicles with MSRP over $150,000 that are 10 years old or less. Title fee is $10 + $10 Highway Patrol fee. Montana has no EV surcharge. A new $35,000 vehicle in Montana (participating county) runs about $412 in first-year costs — among the lowest in the US (the no-sales-tax savings is $2,100+ vs neighbors). Annual renewals around $392.
North Dakota
North Dakota has one of the simpler vehicle tax structures: 5% Motor Vehicle Excise Tax replaces sales tax (no local additions, full trade-in credit), weight-based annual registration around $76 for typical passenger vehicles, and just $5 for the title fee. No annual ad valorem on vehicles. No state-mandated emissions testing or inspections. EV surcharge is $120/year (PHEV $50). A new $35,000 vehicle in North Dakota runs about $1,843 in first-year costs (mostly the $1,750 MVET + $76 registration + small fees), with annual renewals around $76.
What this means for you
- Buying a new car: Montana is roughly $1,431 cheaper than North Dakota in the first year on a $35K vehicle, driven mostly by sales tax and one-time fees.
- Annual renewal: North Dakota is cheaper to renew annually by about $309/year. Over a 5-year ownership period that's roughly $1,545 in renewal-fee savings alone.
- If you drive an EV: Both states charge similar EV surcharges (Montana: $130/year, North Dakota: $120/year), so EV ownership cost between the two is comparable.
- Structural differences: Neither state imposes an annual ad valorem vehicle property tax, so renewal costs stay relatively flat after the first year for both.
Frequently asked questions
Is it cheaper to register a car in Montana or North Dakota?
It depends on the timeframe. Montana costs $412 first year and $385 annually after. North Dakota costs $1,843 first year and $76 annually after. One state may be cheaper upfront and the other cheaper long-term.
What is the sales tax difference between Montana and North Dakota?
Montana charges 0.00% combined sales tax on vehicles; North Dakota charges 5.00%. On a $35,000 purchase that's $0 in Montana vs $1,750 in North Dakota.
Do Montana and North Dakota both charge EV registration fees?
Montana: $130/year EV surcharge. North Dakota: $120/year EV surcharge. EV fees are added on top of standard registration costs.
Official sources: Montana Motor Vehicle Division • North Dakota DOT Motor Vehicle Division
Data last updated: 2026-05-23