Big changes are coming to Montana property taxes!
In 2026, Montana is introducing a new homestead and rental property reduced property tax rate for qualifying properties. All other residential properties (including cabins, second homes, short-term rentals, etc.) will be subject to an increased 1.9% flat property tax rate.
Homestead Reduced Rate: Property owners who own and have resided at their principal residence for at least seven 7 months can apply for a homestead property tax reduced rate with Montana DOR (http://revenue.mt.gov).
Property owners will need to apply to Montana DOR by March 1, 2026, to qualify for the exemptions in 2026. However, property owners who qualify and receive the 2024 Property Tax Rebate will be automatically applied for the Homestead Exemption on the same principal residence that received the rebate.
Rental Property Reduced Rate: Long-term rental property owners who rent for periods of 28 days or more for at least seven months and whose tenants use the dwelling as their residence can apply for a rental property reduced tax rate with Montana DOR. Property owners (including entity representatives) must apply by March 1, 2026, to receive the reduced tax rates in 2026.
Fine print:
- Property owners must apply for the Homestead Exemption. The reduced property tax rate will not be automatically applied to all properties.