GET COMPLIANT: LODGING TAXES + FILING REQUIREMENTS
If you operate a short-term rental in Montana (stays under 30 days) and check one of these boxes, keep on readin’ friend!
☐ You host on Airbnb, VRBO, or other short-term rental platforms
☐ You accept direct bookings (through your own website, social media, or offline)
☐ You do not have a Montana Sales Tax Permit (this is required for all hosts)
☐ You do not have a Lodging Facility Tax (LFT) account (this is required, too!)
Montana is one of the few states without a general statewide sales tax. But here’s what many hosts don’t realize: Montana imposes an 8% Lodging Facility Sales and Use Tax on most stays under 30 days.
Even if Airbnb or another platform is collecting and remitting that tax on your behalf, you are still legally required to:
Obtain a Montana Sales Tax Permit + Lodging Facility Tax (LFT) account (Complete: Montana Department of Revenue Business Registration)
File quarterly returns, including zero-balance returns!
LODGING TAXES
4% Lodging Facility Use Tax
4% Lodging Sales Tax
= 8% total on taxable lodging charges
The tax applies to the total amount the guest must pay to stay, including fees such as: cleaning fees, extra guest fees, early check-in/late check-out fees, and amenity fees).
Filing & Due Dates
Montana lodging facility sales and use tax returns and payments are due quarterly, on the last day of the month following the quarter:
Q1 (Jan–Mar) → April 30
Q2 (Apr–Jun) → July 31
Q3 (Jul–Sep) → October 31
Q4 (Oct–Dec) → January 31
Even if you have zero revenue for a quarter, you must still file a quarterly return!
Vendor Allowance
Montana allows a 5% vendor allowance against the 4% lodging sales tax portion if you file and pay on time.
Records & Audits
The Montana Lodging Facility Sales and Use Tax Guide says sellers must keep records available for 5 years:
monthly booking summaries by platform
payout statements
copies of exemption support (especially 30+ day agreements)
any direct-booking invoices/receipts
local tax filings (if applicable—more on that below)
A Quick Example
Example 1: You only host on Airbnb. A guest books your property on Airbnb on 12/01/25:
Nightly rate: $200 × 3 nights = $600
Cleaning fee: $120
Taxable total: $720
State lodging taxes (8%): $720 × 0.08 = $57.60
You would file a quarterly return on 1/31/26 showing your gross revenue from Airbnb, and check a box that a short-term rental platform collected and remitted the tax. You would file a zero balance/no tax due return.
Example 2: You host on Airbnb and have a direct booking website. A guest books your property directly on your website on 12/15/25:
Nightly rate: $300 × 3 nights = $900
Cleaning fee: $100
Taxable total: $1,000
State lodging taxes (8%): $1,000 × 0.08 = $80.00
You would file a quarterly return on 1/31/26 showing your gross revenue from Airbnb and from direct bookings. You would be responsible for remitting the taxes due on the direct booking with your quarterly return.
CHECKLIST FOR HOSTS
Register and obtain your seller’s permit + LFT account online.
To register for a Lodging Facility Sales and Use Tax account, use the TransActionPortal.
Under “Business,” select “Register for a New TaxAccount.”
Complete the required steps and then “Submit.”
They will mail a welcome letter and sales tax permit once the account has been established.
As a valid Lodging Tax account holder, you will get a free listing on the Office of Tourism’s website: www.visitMT.com.
Track your booking revenue (Airbnb, VRBO, direct bookings, etc.) so you can report/remit properly
File quarterly returns by the due dates (even if there is no tax due)
Keep records for 5 years
