Montana Short-Term Rental Laws (2026)

Montana short-term rental compliance has two layers. Tourist homes and similar vacation rentals generally need a state Public Accommodation License and must collect Montana's combined 8% lodging facility sales and use tax. Cities and counties may add zoning, registration, business-license, inspection, occupancy, and operating requirements.

This 2026 guide uses current official materials from Montana DPHHS, the Montana Department of Revenue, Bozeman, Missoula, and Billings. Requirements differ by property type and address, so state approval does not replace local zoning or registration.

Montana Short-Term Rental Laws - Quick Answer

State lodging license: Montana DPHHS treats tourist homes and short-term rentals such as Airbnb and Vrbo properties as public accommodations subject to state licensing.
Plan review and inspection: Applicants work with the county environmental health department or county sanitarian. New construction, remodeling, and ownership changes can trigger plan review or pre-opening inspection.
2026 state license fees: $100 for 1-10 rooms, $175 for 11-25 rooms, and $250 for 26 or more rooms.
State lodging tax: Montana charges 4% Lodging Facility Use Tax plus 4% Lodging Sales Tax - 8% combined.
Thirty-day exemption: Units rented to the same purchaser for 30 continuous days or more are exempt from the lodging facility sales and use tax.
Marketplace collection: Online hosting platforms collect and remit state lodging taxes on transactions they facilitate. Hosts handle direct bookings.
Local rules: Bozeman, Missoula, and Billings each require separate local authorization and impose different zoning and operating standards.

Montana Public Accommodation License

The Montana Department of Public Health and Human Services' Public Accommodations program covers hotels, motels, bed and breakfasts, and tourist homes or short-term rentals such as Airbnb and Vrbo properties.

A tourist home is generally a private home or condominium that is not occupied by an owner or manager and is rented in its entirety to transient guests on a daily or weekly basis. Owner-occupied room rentals may fall under a different public-accommodation category, so confirm the classification with the county sanitarian rather than choosing a license category from a third-party summary.

Application and Inspection Process

DPHHS directs new applicants to the county environmental health department where the property is located. The county sanitarian handles plan review and coordinates the state license process. Depending on the property, the application may require:

property and operator information;
a floor plan or facility plan;
water and wastewater information;
building and fire approvals;
cleaning and sanitation procedures;
a pre-opening inspection; and
payment of the annual license fee.

New construction or remodeling requires plan approval and a pre-opening on-site inspection before operation. A change of ownership also requires at least a pre-opening inspection before license approval.

2026 Public Accommodation Fees

Montana Code Section 50-51-204 and DPHHS's 2026 renewal schedule list annual initial and renewal fees as follows:

1-10 rooms available for rent: $100.
11-25 rooms: $175.
26 or more rooms: $250.
Late renewal: an additional $25 when an establishment operates in the next licensing year without timely renewal.

Some older DPHHS application PDFs still display prior fee amounts. Use the current statute and current DPHHS renewal page for 2026 fees.

Montana Health and Safety Standards

Public accommodations are subject to state health and sanitation rules. The state and local health authority may review:

potable water and approved wastewater disposal;
clean, sanitary rooms and furnishings;
toilet and bathing facilities;
laundry and linen practices;
garbage storage and disposal;
building maintenance and pest control;
heating, ventilation, and lighting;
fire and life-safety approvals; and
guest records required by applicable public-accommodation rules.

Local fire, building, or zoning reviews can add requirements beyond the DPHHS license. Complete each approval in the sequence specified by the county and city.

Montana Lodging Taxes

The Montana Department of Revenue's Lodging Facility Sales and Use Tax page includes vacation rentals, homes, apartments, timeshares, rooms, online hosting platforms, and short-term rental marketplaces.

Combined 8% State Tax

Montana charges a combined 8% on taxable lodging:

Lodging Facility Use Tax: 4%.
Lodging Sales Tax: 4%.

The tax applies to the total amount paid for accommodations. Separately stated meals, transportation, entertainment, and similar charges can be excluded when they meet the Department's rules.

Thirty Continuous Days or More

A unit or space rented to the same purchaser for 30 continuous days or more is exempt from Montana lodging facility sales and use tax. Preserve the booking agreement and payment records supporting the continuous-stay exemption.

Seller Permit and Filing Dates

Each lodging accommodation responsible for collecting and remitting tax must obtain a seller's permit before doing business. Reports and payments are due quarterly:

first quarter - April 30;
second quarter - July 31;
third quarter - October 31; and
fourth quarter - January 31.

A seller that timely files and pays may claim a 5% vendor allowance against the 4% lodging sales tax. There is no vendor allowance against the 4% lodging facility use tax.

Marketplace and Direct Bookings

Montana requires short-term rental marketplaces and online hosting platforms to collect, report, and pay state lodging taxes on sales they facilitate. Hosts still must collect and remit tax on direct bookings and other sales outside the marketplace.

Check the tax breakdown for each channel. Marketplace collection of state tax does not establish that local zoning, city registration, or public-accommodation licensing is complete.

Bozeman Short-Term Rental Rules

Bozeman's official Short Term Rentals page requires a city STR registration or hosting permit in addition to the Montana Public Accommodation License and applicable inspections. Bozeman updated its Unified Development Code effective February 1, 2026.

Bozeman STR Types

Type 1: one or more bedrooms in the host's primary residence while the host occupies the same dwelling for the full rental period.
Type 2A: the host's primary residence rented while the host is absent.
Type 2B: an accessory dwelling unit on the same lot as the host's primary residence, or no more than one additional unit in the same building.
Legacy Type 3: a non-owner-occupied entire-home rental that qualified before new Type 3 rentals were prohibited on December 14, 2023.

New Type 3 registrations are not available. Only compliant, active legacy Type 3 properties may continue under the city's transition rules.

Primary Residence and 2026 Zoning

For primary-residence-based types, the host must occupy the home as a primary residence for at least 70% of the calendar year and complete the city's annual primary-residence certification. Type 2B requires the host's primary residence on the same lot or in the same building.

Bozeman's February 2026 zoning update consolidated former RS, R1, and R2 districts into the RA district. The city states that only Type 1 STRs are allowed in the new RA district. Eligibility is parcel-specific - use the current zoning map and the city's 2026 allowed-type table before applying.

Bozeman Application Steps

A Bozeman application can require proof of the state Public Accommodation License application, zoning confirmation, primary-residence documentation, a fire inspection, a health inspection, local contact information, and annual renewal. The city's live page and posted FY26 fee schedule show different registration amounts, so verify the current total in the application portal before budgeting.

For local operations support, see Checkmate's Bozeman Airbnb management page.

Missoula Short-Term Rental Rules

Missoula defines a short-term rental as a dwelling unit rented for less than 28 consecutive days when the guest has a principal residence elsewhere. Rental of less than a full dwelling unit in an owner-occupied home is excluded from this specific city definition.

The city's Short Term Rental Registration program requires online registration and annual renewal. Hosting platforms must collect the city's registration number for listings.

Missoula Application Requirements

confirm the zoning designation;
describe the unit and square footage;
complete the safety self-inspection checklist;
provide listing information when available;
obtain the Montana Public Accommodation License;
establish the Montana lodging-tax account; and
complete annual renewal by January 31.

A Tourist Home - a dwelling used most of the time as a short-term rental without a long-term primary resident - in a residential district must submit a neighbor-notification list for parcels one parcel deep around the property. Missoula distinguishes this zoning category from other registered STRs.

The city's page still displays a 2025 application fee, so this article does not repeat it as a 2026 amount. Confirm the current application and renewal charges in Missoula's fee schedule or portal.

For local operations support, see Checkmate's Missoula Airbnb management page.

Billings Short-Term Rental Rules

Billings requires both a city business license and an annual Short-Term Rental Permit for each location. Applications are submitted through the CityView portal, and renewal should be filed at least 30 days before the permit expires.

Billings Operating Standards

Official Billings materials require or identify:

a current city business license;
a separate STR permit for each property;
annual permit renewal;
no more than two guests per bedroom;
use of habitable space that meets applicable building requirements;
compliance with city zoning;
guest safety and operating information;
noise and nuisance compliance; and
restrictions affecting deed-restricted affordable units.

The city may deny or revoke an STR permit when the business license is not current or the property fails the review criteria. Confirm the exact property configuration and certificate-of-occupancy record with Planning before advertising.

For local operations support, see Checkmate's Billings Airbnb management page.

Other Montana Communities

Whitefish, Red Lodge, Big Sky-area jurisdictions, resort-tax districts, and counties near Glacier and Yellowstone may have local zoning, resort-tax, registration, or safety requirements. Do not transfer Bozeman, Missoula, or Billings rules to another address.

For Whitefish market support, see Checkmate's Whitefish Airbnb management page. Verify legal eligibility with the city or county and local health department.

Montana Host Compliance Checklist

Classify the accommodation. Confirm whether DPHHS treats it as a tourist home, bed and breakfast, hotel, or another public-accommodation type.
Contact the county sanitarian. Complete plan review, water and wastewater review, and pre-opening inspection requirements.
Obtain the state license. Pay the current room-count-based Public Accommodation License fee.
Verify zoning. Determine the exact city, county, zoning district, and any resort-tax district.
Complete local authorization. Apply for Bozeman registration, Missoula registration, Billings permits and business licensing, or the relevant local equivalent.
Register for tax. Obtain a Montana lodging seller's permit for taxable direct bookings.
Audit platforms. Document taxes collected by Airbnb, Vrbo, and other marketplaces.
Prepare the unit. Complete health, fire, building, occupancy, emergency-information, and local-contact requirements.
Calendar deadlines. Track the state license, local registration, inspections, and quarterly tax returns.
Preserve records. Keep booking, tax, exemption, inspection, license, guest, cleaning, and maintenance records.

Common Montana Compliance Mistakes

Obtaining a city permit but skipping the state Public Accommodation License.
Using an older state fee schedule instead of the 2026 $100, $175, and $250 tiers.
Treating every city as if it uses a 30-day definition - Missoula uses less than 28 consecutive days for its registration ordinance.
Applying an outdated Bozeman Type 1, Type 2, and Type 3 summary after the February 2026 zoning update.
Assuming 8% state tax is the complete rate in a local resort-tax jurisdiction.
Failing to report direct bookings because a platform handles marketplace transactions.
Assuming a state license overrides local zoning or private HOA restrictions.

Official Sources

Bottom Line

Montana hosts need state public-accommodation licensing, state lodging-tax compliance, and address-specific local approval. Start with the county sanitarian, then verify zoning and city requirements before listing. Confirm marketplace collection, file direct-booking taxes, and keep state and local renewals current. This guide is general information, not legal or tax advice.