Montgomery, AL Short-Term Rentals: Taxes & Fees (2026)

00 maximum fee for rooming houses and boarding houses with up to nine rooms, but the schedule is captioned "(Other than Airbnb hosts)," meaning the flat per-room fee does not cover short-term rental hosts who book through platforms like Airbnb. Because that carve-out exists, an Airbnb-style host in Montgomery falls back to the general business-license framework in Chapter 16, Article II: Sec. 16-86 makes it unlawful for any person to engage in any business or vocation in the city for which a license is required without first procuring one, and every business must be classified under the NAICS-based schedules in Sec.

16-105 and priced under the gross-receipts tables in Sec. 16-106 (Schedules A and B), which start as low as $120 to $200 depending on the gross-receipts tier before a per-thousand-dollar marginal rate applies. Separately, Article V's transient occupancy tax at Sec. 16-231 reaches "any other place in which rooms, lodgings or accommodations are regularly furnished to transients for consideration" for stays under 180 consecutive days, at 11 percent of gross rental income, so a short-term rental host's nightly bookings are not exempted from that lodging tax even though the host is exempt from the Schedule AJ per-room license.

Applicants under Schedule AJ must also be referred to the city's Division of Codes and Standards and the Montgomery Fire Department for additional requirements; the code does not specify a parallel referral step for Airbnb-type hosts, leaving the general business-license and occupancy-tax provisions as the operative rules.