Alabama county rules
Montgomery County, AL vacation rental rules and taxes
Montgomery County adds a $2.25 per-room-night lodgings fee, which the county collects itself, on top of the 4% state tax. The City of Montgomery adopted a short-term rental ordinance in September 2026: a $250 yearly license per property, a licensed inspection, $1 million in insurance, and a one-hour response time.
Checked against official sources November 5, 2026We found no county short-term rental rules outside the cities. Pike Road also has a town lodgings tax.
What to do
Register for the county room fee
File the $2.25 per-room-night county lodgings fee with Montgomery County (its Sales Tax and Audit department posts the lodging tax form). Airbnb’s Alabama article doesn’t list it.Source
Then your city
The City of Montgomery has its own license and rules. Pick your area.
Towns
Montgomery (city)
Since September 2026, the City of Montgomery requires a Short-Term Rental Business License for each property in the city and police jurisdiction: $250 a year, an inspection by an Alabama-licensed home inspector, $1 million liability insurance, a floor plan, site plan, and evacuation maps, and a contact within 30 miles who responds within an hour. Lodgings tax is 15% plus $2.25 a night.
Full guidePike Road
We found no short-term rental permit or rules in Pike Road’s code. You owe 12.5% plus $2.25 a night (8.5% town + 4% state + county fee) in lodgings tax and likely need a business license; some of the local tax may not be collected by Airbnb.
Sources
- Sales tax and audit forms (includes the lodging tax form) · Montgomery County Commission
- Local lodgings tax rates report (November 2026) · Alabama Department of Revenue
- State lodgings tax · Alabama Department of Revenue
- Short-term rental ordinance (2026) · City of Montgomery
A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.