Montgomery County, MD Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Tax rate
- 7% of room rental charge
- Applies to
- Stays of 30 days or fewer
- Covers
- Hotels, motels, dwelling units
- Filing
- Monthly report to Director of Finance
- Violation class
- Class A violation
Summary
Montgomery County collects a 7% room rental and transient tax on short-term rental stays, including Airbnb and other dwelling-unit lodging under 30 days.
The Director of Finance must impose on each transient a tax at the rate of 7 percent of the total amount paid for room rental, by or for the transient, for sleeping accommodations in any hotel or motel that is located in the County.
(2) The County Council by resolution, after a public hearing advertised under Section 52-17(c), may increase or decrease the rate of this tax.
(b) The following words and phrases, when used in this Section, have the following meanings: Broker means a person, other than the owner or operator of a hotel or motel, that receives, facilitates or arranges payment, directly, indirectly, or through an online platform, for hotel or motel accommodations from a transient who is subject to the tax under subsection (a). Director means the Director of Finance or the Director’s designee. Hotel or motel means any hotel, inn, hostelry, tourist home or house, motel, apartment hotel, rooming house, dwelling unit or other lodging place that offers for compensation sleeping accommodations in the County. A hotel or motel does not include:
(1) a hospital, medical clinic, nursing home, rest home, convalescent home, assisted living facility, or home for elderly individuals; or
(2) a facility owned or leased by an organization that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code if the primary use of the facility is other than housing overnight guests. Hotelkeeper means a person that:
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-90: Montgomery County Code contains legislation effective through May 7, 2026 | Zoning Updated Effective: April 13, 2026 | COMCOR Regulations effective as of July 1, 2026).
Full Breakdown
County Code Sec. 52-16 taxes transients 7% of the total room rental charge for stays of 30 or fewer consecutive days in a hotel, motel, or dwelling unit offering paid sleeping accommodations. Hosts ("hotelkeepers") collect the tax at payment, hold it in trust, and remit it to the Director of Finance monthly (or quarterly if approved), with a filed report showing rentals and tax collected.
Violations & Fines
Class A violation for noncompliance; late/unpaid tax draws 1% interest per month plus a 5% monthly penalty, capped at 25% of the tax owed.
Frequently Asked Questions
Does the 7% tax apply to Airbnb-style rentals?
Who is responsible for collecting the tax?
Sources & Official References
Other rules in Montgomery County
How Montgomery County compares: Cities with the Highest Short-Term Rental Taxes·Compare Montgomery County to another location·View the Maryland short-term rentals overview
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