Montana contractor licenses: the new 2026 construction license and the trades beside it

Montana changed its rules for builders this year, and most advice online still describes the older registration. The state now licenses construction contractors, electricians and plumbers through the Department of Labor and Industry, and pesticide applicators through the Department of Agriculture. It does not have a general sales tax, which removes one registration most states require. This page walks through each trade, what the agency says, and what stays with cities and counties. It is general information, not legal advice. Confirm with the agency before you act.

The Construction Contractor License, effective January 1, 2026

House Bill 239 (2025) added chapter 45 to Title 37 of the Montana Code Annotated. The department's FAQ (revised May 19, 2026) says contractors with an active registration on December 31, 2025 were converted to the new license. Applications and renewals are online, and the fee is $70 for both.

The definition in MCA 37-45-102 covers an independent business that offers, bids or does work to construct, alter, repair, add to, improve, move, wreck or demolish a building or other structure or improvement attached to real estate. The text names carpet and floor covering installation, scaffolding, and roofing and siding installation or repair. The FAQ says the program targets contractors with employees, and corporations and manager-managed LLCs regardless of employee count.

If you work in remodeling, roofing, siding or flooring, the statute names you directly. For anything else that attaches to a building or the land, read the definition and ask the department about your specific work.

Who is exempt: the $2,500 rule, solo operators and owners

MCA 37-45-104 lists the exemptions. The ones most small operators care about:

• Casual jobs under $2,500: a project whose aggregate contract price for labor, materials and everything else is less than $2,500 is exempt. The exemption does not apply if the work is part of a larger operation, or if a bigger job is divided into pieces under $2,500 to avoid the law.
• Independent contractors with no employees: exempt, though they may register voluntarily.
• Licensed electricians and plumbers: exempt when working within the scope of their Montana license.
• Owners working on their own property: exempt, with a limit. An owner who builds an improvement to sell promptly is not exempt unless they have lived there as a primary residence for the last 12 months.
• Employees: a person whose only compensation is wages as an employee of a registered contractor is exempt.
• Others: licensed water well contractors, fire protection licensees, farmers and ranchers on their own operations, and some tribal members working within reservation boundaries.

The statute also exempts selling or installing finished products that do not become a permanent fixed part of a structure. If your work is pressure washing, mowing or cleaning, nothing in the definition describes it. The program's own guidance is to ask the department when your work does not construct, alter or repair something attached to real estate.

Why general contractors and customers will ask for it

MCA 37-45-202 says a person who hires a contractor licensed on the date of the contract is not liable as an employer for workers' comp, unemployment insurance, wages or fringe benefits for that contractor, its employees, or its subs. That gives homeowners and general contractors a reason to ask for your license number before they sign. The department also lists "engaging a person to perform work for which that person is not licensed" as unprofessional conduct, so a licensed contractor who hires an unlicensed sub risks discipline.

The department's program page lists other conduct that can cost a license, including failing to report an ownership or business name change within 30 days and violating a federal, state or local law related to the work.

Electricians and plumbers: separate boards, own-home exemptions

The Montana State Electrical Board licenses residential, journeyman and master electricians, and electrical contractors. The board's page requires 16 hours of continuing education under ARM 24.141.2102. MCA 37-68-103 contains the limits:

• An individual may do electrical work on their own residence or property for their own use without a license, except on a grid-tied generator.
• Work at 90 volts or less, AC or DC, does not require a license.
• A firm may be licensed as an electrical contractor only if all of its electrical work is under a licensed master electrician, or under a journeyman for residential construction of fewer than five living units in a single structure.

The Board of Plumbers licenses master and journeyman plumbers and a medical gas endorsement, with four hours of continuing education per renewal cycle under ARM 24.180.2102. MCA 37-69-102 lists exceptions, such as an owner installing plumbing in a single-family residence for personal use and installing water conditioner services in private dwellings. The statute defines a plumbing system as extending up to 20 feet beyond the building foundation line.

Both boards say a military spouse with an active out-of-state license may receive a provisional license that works as a full license for 60 days while verification is completed.

Lawn and pest work: Department of Agriculture license

The Montana Department of Agriculture says any person in the business of applying pesticides must hold an applicator license. You pass a core exam plus a category exam with 80 percent or better. Lawn and ornamental work falls under Category 3, Ornamental and Turf Pest Control, and structural pest work under Category 7.

• Fees: $85 per year, plus $25 for each of the first two operators and $10 for each additional operator.
• Insurance: commercial applicators must carry liability insurance, at least $30,000, or $50,000 for aerial applicators. Coverage must last the whole licensing period.
• Renewal: licenses expire each December 31 and must be renewed before pesticides are applied.

Read our pest control license guide for how exam routes compare across states.

Solo operators: the workers' comp exemption certificate

Apart from the construction license, Montana's labor department issues an Independent Contractor Exemption Certificate that lets an independent contractor waive workers' comp for themselves. The fee is $125 and non-refundable, there is no test, and you must submit business documentation for each occupation on the application. The department says an independent contractor can be fined up to $5,000 per violation for working without an ICEC or comp coverage, working with a revoked or suspended certificate, transferring one, or misrepresenting independent contractor status.

Trades with no contractor license, and your short checklist

Montana's Department of Revenue says the state has no general sales tax, so mowing, cleaning, washing or repair invoices carry no state sales tax. You still need to register a business name with the Secretary of State (the assumed business name fee is $20, as listed in October 2026) and check with your city or county for a local business license. If you hire your first employee, you need workers' comp and a Construction Contractor License if the work is construction. The Montana startup page covers the LLC filing and call recording rules, and the national contractor license guide shows the usual route in other states.

Frequently asked questions