New Montana Property Tax Rates for Homesteads and Rentals
The 2025 Montana Legislature passed a new property tax system, which will take full effect in 2026. In general, most primary residences and long-term rentals will have lower tax bills, while short-term rentals, second homes, and commercial properties will have higher tax bills. High-value primary residences (estimated to be those worth more than $1.5 million) will likely see higher tax bills as well. Agricultural land should see a slightly reduced tax rate.
How Do I Get the Lower Rates?
If you have lived in your residence for more than 3 years, or if you received the $400 property tax rebate in 2025, your property should automatically be enrolled in the homestead exemption for a reduced rate. However, we still encourage our clients to enter their geocode into this website to confirm their enrollment: https://revenue.mt.gov/property/property-tax-changes/homesteads-and-long-term-rentals. If your property is not enrolled, you can complete the short application using the same link. The application must be completed by March 1, 2026.
If you own a long-term rental (that is, a rental property which is leased to a tenant as a residence for at least 7 months of the year), that property also qualifies for a lower rate, but you will have to complete an application using the link above. The applications are simple, but will require you to create an account. We cannot complete the application on your behalf.
What About Trust Property?
If your residence is held by a revocable trust, then it still qualifies for the homestead reduced rate, though you may have to complete the application.
Generally, a residence held by an irrevocable trust does not qualify for the homestead exemption. However, our clients with irrevocable trusts often have a rental agreement in place in which they are “renting” their residence from the irrevocable trust. So, although the property would not qualify for the homestead rate, it would qualify for the long-term rental rate. For such property, you should consult your attorney and will need to complete the application.
What About Company Property?
Residences held by a company (LLC, Partnership, Corporation, etc.) do not qualify for the homestead reduced rate.
Long-term rentals held by a company do qualify for the long-term rental reduced rate, so long as the application is completed using the link above.
Conclusion
The property tax system is new, complex, and has not been fully implemented. Further, we expect it to be revised further during the next legislative session in 2027. For now, we advise our clients to check the enrollment status of their properties and complete the online application for those they believe to be eligible.
