Montana is famous for its natural beauty and outdoor adventure—fly fishing, river rafting, horseback riding, and stunning national parks. If you own a cabin, run a guide service, or rent outdoor gear, you might assume you’re off the hook for sales tax. After all, Montana has no general sales tax, right?
Well… yes and no.
While Montana doesn’t have a statewide sales tax, many outdoor and tourism-related businesses are still required to collect and remit certain industry-specific and local taxes. If you’re operating in this space, it’s important to know what applies to you.
What Taxes Might Apply to Your Outdoor Business?
- Lodging Facility Use Tax (4%)
If you rent out rooms, cabins, or vacation homes, you must collect a 4% state lodging facility use tax. This applies even if you rent for only part of the year. - Lodging Sales Tax (4%)
In addition to the lodging facility use tax, Montana imposes a 4% sales tax on all short-term rentals under 30 days. These two taxes combined often surprise new vacation rental owners. - Montana Resort Tax (Up to 3%)
Tourist-heavy towns like Big Sky, Whitefish, and Red Lodge have an additional resort tax of up to 3% on lodging, restaurant sales, and gear rentals. Businesses operating within those jurisdictions must collect and report these taxes separately. - Gear Rentals & Guided Tours
Montana doesn’t impose sales tax on most services, which includes guided fly fishing trips or horseback rides. But if you rent out physical items like ATVs, bikes, or snowmobiles, be sure to check local rules or resort tax requirements.
Tax Exemptions You Should Know
- Rentals of 15 days or fewer in a year may be exempt from reporting income under federal law.
- If you use online platforms like Airbnb or Vrbo, they may collect and remit some taxes for you—but not always all of them. You still must verify what is being paid on your behalf.
Tip: You must register with the Montana Department of Revenue before collecting lodging or resort taxes. Penalties can apply for failing to collect or report properly.
How SDH CPAs Can Help
We work with Montana tourism operators to:
- Set up correct tax accounts with the state
- Track seasonal cash flow and expenses
- Report monthly or quarterly lodging taxes
- Plan for slow seasons with smart budgeting
Running a seasonal business doesn’t mean your finances should be unpredictable. Let us help you simplify your accounting and stay compliant.
