Montana Vacation Rental Tax Calculator

Estimate your property tax, lodging tax, federal & state income tax, and depreciation deductions for your Montana vacation rental property.

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Tax Types

What Taxes Apply to Montana Short-Term Rentals?

Montana STR hosts are subject to several types of taxes. Understanding which ones apply — and who collects them — is the first step toward compliance.

Sales Tax

Montana has no state sales tax. The 4% state lodging facility use tax applies instead.

Occupancy / Transient Lodging Tax

Montana's lodging/occupancy tax is the primary STR-specific tax. Combined rates reach 7% in Big Sky and 7% in Whitefish. This includes state, county, and city-level components.

Tourism / Convention Center Tax

While Montana doesn't have a prominent statewide tourism tax, some cities and resort areas may levy additional tourism development or marketing district assessments of 1–3%.

Federal & State Income Tax

Net rental profit is subject to both federal income tax (10–37% in 2026) and Montana's state income tax at 5.9%. Reported on Schedule E (Form 1040). Deduct expenses like mortgage interest, repairs, and depreciation.

Property Tax

Montana's average effective property tax rate is 0.84%. Assessed annually on market value. STRs may face higher assessments in some jurisdictions.

Important

Does Airbnb Collect and Remit Taxes in Montana?

Airbnb has agreements to collect and remit taxes in Montana — but coverage is not always complete.

Airbnb collects Montana's state-level lodging tax in most jurisdictions.
In Big Sky and Whitefish: Airbnb may or may not collect all county/city taxes.
Rural areas: You're often fully responsible for all local tax collection.
Even where Airbnb collects, you may owe additional local levies or special district taxes.

Bottom line: Never assume Airbnb handles all your Montana tax obligations. Verify with your local tax authority.

Compliance

Do You Need a Tax Permit in Montana?

In most Montana jurisdictions, yes. Common permits and registrations required:

State sales tax permit / seller's permit
City or county business license
Short-term rental operating permit
Lodging tax registration certificate

Consequences of non-compliance

5–25% penalties on unpaid taxes in Montana

Revocation of rental permit

Liens on your property

Tax Overview

Short-Term Rental Taxes in Montana

Key tax facts every vacation rental host in Montana should know.

State lodging tax: 4%

No state sales tax

Local resort tax: up to 3%

State income tax: ~5.9%

Property tax rate: ~0.84%

City Breakdown

Lodging Tax Rates by City in Montana

Combined lodging/occupancy tax rates for major vacation rental markets in Montana.

CityCombined Rate

Big Sky

4% state + 3% local resort

Whitefish

4% state + 3% local resort

West Yellowstone

4% state + 3% local resort

Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.

FAQs About Montana Vacation Rental Taxes

Common questions about short-term rental taxes, permits, and compliance in Montana.

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