Taxes/fees

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Trista352
Level 1
Broadus, MT

Taxes/fees

How are the guest service fees calculated? For Montana

How are the occupancy taxes calculated? For Montana

Top Answer
Lorna170
Top Contributor
Swannanoa, NC

FROM THE WEB:

 

Host service fee:  Most hosts pay a 3% service fee. The fee is automatically deducted from the total price (service fees are a percentage of the nightly price and any fees charged by the host but exclude the guest service fee and taxes) to calculate the host payout.

 

AirBnB Guest Service Fee:  Guests pay a service fee ranging from 14.1% to 16.5% of the booking subtotal (the booking subtotal includes the nightly price and any additional fees charged by the host but excludes the guest service fee and taxes). The guest service fee varies based on a variety of factors and may be higher or lower depending on the booking. The guest service fee is reduced for some stays of 28 nights or more.

 

Montana Short Term Rental Taxes:  Every short-term rental host in Montana must be aware of two primary state taxes that apply to reservations of 29 days or fewer. The Lodging Facility Use Tax (4%) and the Lodging Sales Tax (4%) are both imposed across the state. These taxes apply to the full amount charged to guests, including the nightly rate, cleaning fees, and any additional guest fees.

 

Example: A 3-night stay at $150 per night with a $75 cleaning fee.

 

Nightly Rate: $150 (3 nights) = $450
Cleaning Fee: $75
Total Listing Price: $525
Lodging Facility Use Tax (4%): $21
Lodging Sales Tax (4%): $21
Total Tax Amount: $42
Guest's Total Payment: $567

 

To verify that AirBnB is collecting (and remitting) taxes on your property, from your dashboard select your listing, Settings, Taxes, Local Taxes.  You should then see a list of taxes, but not the percentages.

 

View Top Answer in original post

2 Replies 2
Elisa
Community Manager
Community Manager

Hi @Trista352 😊,  Welcome to the Community Center!

 

Have you already started hosting? I’m sharing these links with you for reference. Could you please check if it's helpful?

 👉 How pricing works for homes. 

👉 Occupancy tax collection and remittance by Airbnb in Montana. 

 

I also recommend connecting with hosts in your area through our 👉 Local Host Clubs , so that you can check for more information you’re looking for.


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Please follow the Community Guidelines //Merci de jeter un oeil aux Principes du Community Center
Lorna170
Top Contributor
Swannanoa, NC

FROM THE WEB:

 

Host service fee:  Most hosts pay a 3% service fee. The fee is automatically deducted from the total price (service fees are a percentage of the nightly price and any fees charged by the host but exclude the guest service fee and taxes) to calculate the host payout.

 

AirBnB Guest Service Fee:  Guests pay a service fee ranging from 14.1% to 16.5% of the booking subtotal (the booking subtotal includes the nightly price and any additional fees charged by the host but excludes the guest service fee and taxes). The guest service fee varies based on a variety of factors and may be higher or lower depending on the booking. The guest service fee is reduced for some stays of 28 nights or more.

 

Montana Short Term Rental Taxes:  Every short-term rental host in Montana must be aware of two primary state taxes that apply to reservations of 29 days or fewer. The Lodging Facility Use Tax (4%) and the Lodging Sales Tax (4%) are both imposed across the state. These taxes apply to the full amount charged to guests, including the nightly rate, cleaning fees, and any additional guest fees.

 

Example: A 3-night stay at $150 per night with a $75 cleaning fee.

 

Nightly Rate: $150 (3 nights) = $450
Cleaning Fee: $75
Total Listing Price: $525
Lodging Facility Use Tax (4%): $21
Lodging Sales Tax (4%): $21
Total Tax Amount: $42
Guest's Total Payment: $567

 

To verify that AirBnB is collecting (and remitting) taxes on your property, from your dashboard select your listing, Settings, Taxes, Local Taxes.  You should then see a list of taxes, but not the percentages.

 

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