Why Some Vehicle Owners Register in Another State
So, why do people register cars outside of their home state? In short, to save money and streamline compliance. Some states offer more favorable tax policies, fewer bureaucratic hurdles, or simplified ownership structures.
Yes—you can register your car in another state, provided you meet that state’s qualifications for non-resident registration. These may include storing the vehicle in-state, forming a local business entity, or qualifying for temporary or seasonal use.
Some states explicitly permit non-resident vehicle registration under certain conditions, including Montana, South Dakota, and Vermont, according to AAA DMV Digest. Each has unique criteria and benefits, making them popular among full-time travelers, collectors, and commercial operators.
Why Montana Has Become a Go-To for Out-of-State Registration
Among all available options, Montana stands out due to its 0% vehicle sales tax. This single policy has saved vehicle owners thousands—especially those purchasing high-end vehicles like RVs, exotic sports cars, trailers, and collector cars.
For example, a $150,000 vehicle registered in California could incur more than $12,000 in sales tax. In Montana, you pay none of that, according to the Montana Department of Revenue.
Traveling for work and tired of complicated registration rules? Discover how mobile professionals are saving on taxes with a Montana LLC in our quick guide:
Montana Registration Made Easy for Traveling Nurses and Mobile Professionals.
Montana also allows anyone to form a Limited Liability Company (LLC) and use that company to own and register a vehicle, regardless of where they live. The vehicle title is held in the name of the LLC, which is recognized as the owner by the Montana Department of Justice’s Motor Vehicle Division, according to Montana DOJ MVD – Title Manual.
This makes car registration in Montana one of the most tax-efficient and compliant methods for out-of-state buyers—provided the vehicle is not primarily garaged or used in a state with stricter residency or usage laws.
Why Montana Leads the Nation in Out-of-State Vehicle Registration?
If you’re seriously considering registering a vehicle out of state and want to see how Montana compares, we invite you to read our in-depth article:
What State Is Best For Out-of-State Car Registration? Montana Takes the Lead.
What State Can You Register a Car Without Living There?
Outside of Montana, a few other states offer solutions for non-residents. South Dakota, for instance, allows individuals to register vehicles without in-state residency if they use a local mail-forwarding service and certify that the vehicle is temporarily stored or used in the state (, according to the South Dakota Department of Revenue.
So, what state can you register a car without living there? While several states allow it under limited conditions, Montana remains the most flexible and widely used option due to its zero sales tax, LLC-based ownership structure, and streamlined DMV processes.
States That Allow Non-Resident Vehicle Registration
If you’re comparing your options, here’s a brief overview of states that allow non-resident vehicle registration:
- Montana: No sales tax, LLC ownership by non-residents
- South Dakota: Registration permitted with mailing address or temporary use
Each of these states has nuances in how they handle documentation, tax obligations, and proof of residence, so it’s essential to consult both local laws and professional services to ensure compliance, according to DMV.org state registration summaries.
Need Help Registering a Car in Montana?
Whether you’re a full-time traveler, a business owner managing a fleet, or someone purchasing a high-value vehicle, registering a car in Montana offers a legitimate and cost-saving alternative to high-tax states.
That said, out-of-state registration isn’t a one-size-fits-all solution. You must consider where the vehicle is primarily driven, how your home state defines residency and use, and whether your setup complies with federal and state laws.
So, if you’re asking can I register my car in another state, the answer is yes—but only when it’s structured the right way. And if you’re researching what state you can register a car in without living there, Montana remains the gold standard for tax-friendly vehicle ownership.
At Dirt Legal, we assist individuals and businesses with everything from forming LLCs to handling title work and managing renewals. With over 99% accuracy in filings and same-day processing, we take the hassle out of out-of-state registration.
Start your registration today and take control of your vehicle ownership strategy.
