Is Airbnb & Short-Term Rentals Legal in Montana? (2026)
Yes — Airbnb & Short-Term Rentals are legal in Montana as of 2026.
Law changed in 2025: In September 2025, the Montana Supreme Court ruled that residential covenants prohibiting commercial activity apply to short-term rentals. A new property tax law took effect in 2026, creating a different tax rate for second homes and short-term renta...
Quick Answer
Short-term rentals are legal in Montana. In September 2025, the Montana Supreme Court ruled that residential covenants prohibiting commercial activity apply to short-term rentals. Hosts should verify local ordinances and tax requirements before listing.
What the Law Says
Montana state law requires short-term rental operators to obtain a public accommodation license from the Department of Public Health and Human Services and to collect a state bed tax. Local governments have the authority to enact stricter regulations.
— Mont. Code Ann. § 15-68-101
| Category | Details |
|---|---|
| State-Level Rules | Legal; check local ordinances |
| Local Permit Requirements | Legal; may need business license |
| Violation Penalties | Must collect and remit applicable lodging/occupancy taxes. |
| Pending Legislation | None known |
In September 2025, the Montana Supreme Court ruled that residential covenants prohibiting commercial activity apply to short-term rentals. A new property tax law took effect in 2026, creating a different tax rate for second homes and short-term rentals compared to primary residences.
Enforcement Reality
Enforcement is a mix of state and local efforts. The state Department of Public Health and Human Services (DPHHS) requires a Public Accommodation License and can issue fines up to $500. Local jurisdictions like Gallatin County and Missoula have additional registration and inspection requirements.
A primary violation is operating without the mandatory state Public Accommodation License. Another is failing to comply with local registration and inspection requirements where they exist. Violating private covenants that prohibit commercial activity is also a common issue, which has been upheld by the state Supreme Court.
Local Exceptions
State law sets the baseline. These cities or counties have additional rules that may differ:
Bottom Line
Airbnb & Short-Term Rentals are legal in Montana. You can operating a short-term rental without violating state law, though federal rules and local ordinances may still apply. Always verify current law before acting.
Montana vs. the Rest of the US
Across the US, operating a short-term rental is fully legal in 35 states, restricted in 15, and illegal in 0. Montana falls in the LEGAL category.
View the full 50-state map →Neighboring States
Laws change at state lines. Here is how bordering states compare on Airbnb & Short-Term Rentals:
Frequently Asked Questions
Is operating a short-term rental legal in Montana?
Do you need a permit to run an Airbnb in Montana?
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Reviewed by cross-referencing the cited state statute against current legislative databases and regulatory publications.
Sources & Verification
This page was reviewed by Ethan Harper by comparing the legal status against the cited state statute. AllowedHere is an informational resource and does not provide legal advice. Consult a licensed attorney for guidance specific to your situation.
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