Short-Term Rental Tax in Montana (MT)
The state-level tax rate on short-term rentals in Montana is 4.0% , consisting of 0.0% sales tax and 4.0% lodging tax. Montana applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Big Sky reaches 7.0%. STR operators must register with the state. Montana has no state sales tax but charges a 4% statewide lodging facility use tax on short-term rentals (less than 30 days). Resort areas may add a local resort tax of up to 3%. STR operators must register with Montana DOR.
Annual Tax Estimate for Montana
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Big Sky).
| Nightly Rate | Gross Revenue | State Tax (4.0%) | Big Sky Tax (7.0%) |
|---|---|---|---|
| $100.00/night | $23,700 | $948 | $1,659 |
| $150.00/night | $35,550 | $1,422 | $2,489 |
| $200.00/night | $47,400 | $1,896 | $3,318 |
| $300.00/night | $71,100 | $2,844 | $4,977 |
| $500.00/night | $118,500 | $4,740 | $8,295 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in Montana
Local taxes significantly impact the total STR tax burden in Montana. The table below shows combined state + local rates for 4 cities, sorted by total rate. The highest combined rate is 7.0% in Big Sky.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Big Sky | 3.0% | 7.0% | $14.00 | Low | Big Sky 3% resort tax. Very active vacation rental market near Yellowstone. |
| Whitefish | 3.0% | 7.0% | $14.00 | Low | Whitefish 3% resort tax. Glacier National Park gateway. |
| Bozeman | 3.0% | 7.0% | $14.00 | Low | Bozeman 3% resort tax. |
| Missoula | 3.0% | 7.0% | $14.00 | Low | Missoula 3% resort tax. |
How Montana Compares to Other States
Below is a comparison of Montana with five states that have similar state-level STR tax rates. This comparison helps illustrate where Montana stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| Montana (MT) | 4.0% | 0.0% | 4.0% | Yes | Required |
| New York (NY) | 4.0% | 4.0% | 0.0% | Yes | Required |
| Wyoming (WY) | 4.0% | 4.0% | 0.0% | Yes | Required |
| Missouri (MO) | 4.2% | 4.2% | 0.0% | Yes | Required |
| Virginia (VA) | 4.3% | 4.3% | 0.0% | Yes | Required |
| Oklahoma (OK) | 4.5% | 4.5% | 0.0% | Yes | Required |
Frequently Asked Questions About Montana STR Taxes
What is the short-term rental tax rate in Montana in 2026?
The state-level tax rate on short-term rentals in Montana is 4.0%, consisting of 0.0% sales tax and 4.0% lodging tax. Local taxes can bring the total to 7.0% in cities like Big Sky. At $200/night with 65% occupancy, the state-level tax alone is approximately $1,896 per year.
Does Airbnb collect STR taxes in Montana?
Yes. Airbnb, Vrbo collect state lodging facility use tax. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in Montana?
Yes. Montana requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in Montana also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Big Sky, Montana?
The total combined tax rate in Big Sky is 7.0%, which includes the 4.0% state rate plus 3.0% in local taxes. Big Sky 3% resort tax. Very active vacation rental market near Yellowstone. At $200/night with 65% occupancy, this amounts to approximately $3,318 per year in taxes.
How much will I owe in STR taxes in Montana?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (4.0%), a property earning $200/night with 65% occupancy would owe approximately $1,896/year in state taxes alone. In Big Sky, the total tax at the same rate would be approximately $3,318/year. Use our STR tax calculator for a customized estimate.
Calculate Your Montana STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in Montana. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.