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New on the Montana property tax front
August 16, 2025/
Our legislators are making it harder and harder for non-computer literate people to obtain reasonable real property taxes. Here’s a brief run down of what the legislature’s last changes are. Alexis V.
You may have to apply for the reduced homeowners exemption rate for next year’s real property taxes. Our current millage is 833.790. I don’t know what that translates into in % so it is difficult to compare to what will likely happen.
It looks like if your home isn’t too valuable ie the medium home appraised value of $378,000, it could be as low as .76 %.
It says if you apply for the property tax rebate for taxes paid in 2024 (ie the measly $400 when taxes went up $2K), you will automatically receive the appropriate rate, but I don’t trust them, so I will be applying between Dec. 1 2025. And March 1, 2026.
What Qualifies as a Homestead or Long-term Rental?
Homestead (Primary Residence):
- You lived in the home for at least 7 months of the year
- The property is your principal residence
Long-term Rental:
- The home is rented to tenants for 28+ days at a time
- The home is rented for 7+ months of the year
- You must apply between Dec. 1, 2025 and Mar. 1, 2026 for the 2026 rate
Eligible property types include:
- Single-family homes, townhomes, condominiums
- Manufactured/mobile homes (including up to 1 acre of land)
- OBYs with living space and 1-acre homesite
- Homes located on agricultural or forest land
2026 Tax Rates for Primary Residences and Long-term Rentals
| Tax Rate | Assessed Value |
|---|---|
| 0.76% | <$378,000 (up to median) |
| 0.90% | $378,001 to $756,000 (median to 2x median) |
| 1.10% | $756,001 to $1,511,999 (2x to 4x median) |
| 1.90% | ≥$1,512,000 (4x median or greater) |
2025-2026 statewide median home value is tentatively $378,000. This may change.
Montana has a property tax system that includes:
1. Homestead Declaration
- Purpose: This legal document protects a certain amount of the homeowner’s equity against most unsecured debts, but not explicitly as a property tax exemption.
- Amount: The exemption protects up to $409,450 (in 2025) of a homeowner’s equity. This amount has increased by 4% annually since 2021.
- Definition of Homestead: This refers to the house (or mobile/manufactured home) and the land it occupies, including improvements, as long as it’s the owner’s primary residence.
- Eligibility: Must be the homeowner’s primary residence and filed with the Clerk and Recorder’s office in the county where the property is located.
- Limitations: Doesn’t protect against secured debts (like mortgages) or non-payment of property taxes or special assessments.
- IF YOU HAVEN”T APPLIED, I STRONGLY URGE YOU TO DO SO>
2. Property tax rebate
- Purpose: Provides a rebate to homeowners based on the amount of property taxes they paid on their primary residence.
- Amount: The 2024 rebate (available to claim between August 15 and October 1, 2025) is capped at $400. Last year it was $675.
- Eligibility: Requires owning and residing in the eligible residence as a principal residence for at least seven months in the 2024 tax year. Property taxes must have been billed and paid for that residence.
- Ineligible Properties: Properties owned by LLCs and certain types of trusts are ineligible, as are properties that are not the primary residence.
- You need to find your 17 digit GEO code to claim it. Find it either on Cadastral or it is in the address box of your property tax bill.
3. Homestead tax rates (beginning in 2026)
- Purpose: A new reduced property tax rate for qualifying properties, including primary residences and long-term rentals. Based on multiples of the median MT home price of a preliminary value of $378,00. Up to median-.76%, up to 2x =.9%, up to $1.5M = 1.1%, etc I don’t know if they are going county by county for the median, but they give the median home prices and changes by county. Missoula’s median is $507,000 up $108,000 from 2024 of $399,000. [Glacier ($151K), Lake ($121K), & Gallatin ($164K) are the only counties that went up more than Missoula, though Billings came close.]
- https://revenue.mt.gov/property/property-tax-changes/2025-property-value-changes
- Eligibility: Requires applying to the Montana Department of Revenue (DOR) by March 1, 2026. However, those who qualified for the 2024 Property Tax Rebate will be automatically applied for the Homestead Exemption tax rate on the same residence. (Not the same as the homestead exemption from creditors claims. That is a separate filing with the County Records Office) [ I guess it depends on how much you trust them to do it right and automatically apply the correct rate. I personally would check it or directly apply for the appropriate rate, but that’s up to you.’]
4. Other property tax assistance programs
Montana also offers other programs, like the Property Tax Assistance Program (PTAP) for low-income homeowners, a Disabled Veterans Program, and an Elderly Homeowner/Renter Tax Credit for household incomes of $45K or less, each with specific eligibility requirements related to income, age, disability status, and property value limitations. You can find out more at
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For comparison of 2024 to 2026 anticipated tax rates
Property Tax Rates by Property Type (2024-2026)
Now that I’ve bored you silly, my apologies.
Best, Alexis
