Montana changed how it taxes homes in 2025 and again in 2026. The 2025 Legislature passed HB 231 and SB 542 to lower property taxes for certain residential properties, 2025 was a transition year with tiered rates, and from 2026 primary residences and long-term rentals keep reduced rates while other residential property is taxed at a higher rate.
This guide uses the Montana Department of Revenue’s property tax pages and the Montana Tax Appeal Board’s appeal page, read on 2 November 2026. It covers how a bill is built, the rates by year, who gets the reduced rate and how to enroll, the assistance programs, the 2026 refund, due dates and appeals.
The Department of Revenue explains the bill as two multiplications: the Department values the property, the tax rate for its class turns that value into a taxable value, and the combined mill levy of every local jurisdiction turns the taxable value into the tax. In the Department’s words, "Taxable Value × Mill Levy = Property Tax" (Understanding Montana Property Taxes). On the appraisal notice the steps are Current Assessed Value × Tax Rate = Current Taxable Value, then Current Taxable Value × Current Millage Rate ÷ 1000 = General Property Taxes.
One mill generates $1 for each $1,000 in taxable value. Local governments, not the state, set the mill levies: the Department gives each tax jurisdiction its certified taxable values every year on the first Monday in August, and local governments use them to establish budgets and set mill levies. The Department describes the limit on growth this way: the current year’s Adjusted Property Tax Revenue is the previous year’s increased by one-half of the average inflation rate over the past three years.
This is why a higher valuation does not always mean a higher bill. The Department says mills move opposite to taxable value (when taxable value goes up, mills go down), that property taxes are "zero sum", and that a rise in market value "does not necessarily mean that your property taxes will go up the same percentage." Your bill can also include local special assessments and fees for things the notice lists, such as solid waste or street lighting, on top of the general taxes; your county treasurer can explain them.
The Department values property in cycles of two tax years. The notice page says the current cycle is 2025-2026 and that the valuation date for it is January 1, 2024, so residential, commercial and industrial real property is shown at its 100% market value as of that date. The prior 2023-2024 cycle used a valuation date of January 1, 2022. Where a property’s value rose by more than 10 percent from the prior cycle, the notice displays the reason.
The notice is the document your appeal clock runs from (see the appeals section). The valuation is fixed for the cycle, which is why the rate changes in 2025 and 2026 matter more than the value in the middle of the cycle: the same January 1, 2024 market value is taxed under the 2025 rates in 2025 and the 2026 rates in 2026.
The Department’s comparison page sets the three years side by side for residential property:
| Tax year | Residential rate structure (Department comparison page) | Rebate for a primary residence |
|---|---|---|
| 2024 | 1.35% up to $1.5 million; 1.89% over $1.5 million | Up to $675 |
| 2025 | 0.76% up to $400,000; 1.10% from $400,000 to $1.5 million; 2.20% over $1.5 million | Up to $400 |
| 2026 (primary residence or single-family long-term rental) | 0.76% on the first $378,000; 0.90% from $378,001 to $756,000; 1.10% from $756,001 to $1,511,999; 1.90% over $1,512,000 | Reduced rate instead (enrollment needed) |
| 2026 (second home, short-term rental, vacant residential lot) | 1.90% flat | None |
The 2026 tiers are incremental: each portion of your property’s market value is taxed at the rate listed for that bracket, not the total value. The Department reports that about 80% of properties paid less tax in 2025 than in 2024. For 2026 it says higher taxes on other residential property lower mills, which further reduces taxes on primary residences, long-term rentals and other classes of property.
Other classes have their own structures on the Department’s pages: multifamily dwellings used as long-term rentals are taxed at a flat 1.10% in 2026, commercial and industrial property uses a two-tier structure, and agricultural and forest land have their own rates. On that land the home and one-acre homesite follow the residential tiers when they are a primary residence or long-term rental; as a second home or short-term rental they pay 1.90% (1.35% on qualified agricultural land). As of 2 November 2026 the Department pages read for this guide showed no 2027 tier table, so 2027 rates are not given here. Check the Department’s comparison page for those figures rather than relying on a summary.
The reduced rate is a property tax classification claimed through the Department of Revenue, not the same thing as a Montana homestead declaration filed with the county clerk and recorder (the Department says a homestead declaration does not qualify you for the reduced rate).
Homestead (principal residence): you live in the property at least 7 months of the year, you are current on property taxes, the property is owned by an individual, a couple, or a grantor revocable trust, and it is the only residence you claim the reduced rate for. Properties owned by a limited liability company, partnership, corporation, or irrevocable trust do not qualify for the homestead rate.
Long-term rental: the property is rented to tenants for 28+ days at a time, for 7+ months of the year, as the tenant’s residence. Unlike the homestead rate, property owned by an LLC, corporation, or irrevocable trust can qualify for the long-term rental rate.
Enrollment: if you received the 2025 property tax rebate and still own and live in the home for 7+ months of 2026, you automatically qualify for 2026. Enrollment for the 2026 tax year closed March 20, 2026, according to the Department’s FAQ (its 2026 information page still shows an earlier March 1 end date). For the 2027 tax year the application period runs from May 4, 2026 to March 1, 2027. Per the Department’s FAQ, someone who bought a home after the enrollment deadline that was not already enrolled is taxed at the flat 1.9% rate for 2026 and can claim a refund of the difference if they meet the refund rules (below).
The refund is for homeowners who were eligible for the 2026 reduced rate but did not receive it. You may be eligible if you owned the property in 2026, it was your primary residence for at least seven months in 2026, and your 2026 and all prior-year property taxes are paid in full. It is based on the difference between the regular residential rate and the reduced homestead rate, and is limited to one year.
Requests open January 1, 2027 in the Department’s TransAction Portal and the deadline is May 31, 2027. The Department cannot process a request until the county confirms full payment. If your request is approved, the home is automatically enrolled for the reduced rate for 2027.
This table is our own calculation from the Department’s published rates, not a Department figure. It applies the tiers to a market value to get the taxable value, then multiplies by 0.835, the millage rate that the Department uses in its own worked example on its mill levy page. That millage is an illustration only: your real mill levy depends on every taxing jurisdiction where the property sits, so use your county treasurer’s figure for an actual bill. Tier limits are treated as $378,000, $756,000 and $1,512,000.
| Market value | 2026 homestead taxable value | 2025 tiered taxable value | 2026 second home taxable value | Homestead bill at 0.835 (illustration) | Second home bill at 0.835 (illustration) |
|---|---|---|---|---|---|
| $250,000 | $1,900 | $1,900 | $4,750 | $1,587 | $3,966 |
| $500,000 | $3,971 | $4,140 | $9,500 | $3,316 | $7,933 |
| $1,000,000 | $8,959 | $9,640 | $19,000 | $7,481 | $15,865 |
| $2,000,000 | $23,863 | $26,140 | $38,000 | $19,925 | $31,730 |
For a $500,000 home the 2026 taxable value is $3,970.80 (0.76% on $378,000 plus 0.90% on $122,000), against $4,140.00 under the 2025 tiers and $9,500 if the same home is a second home at the flat 1.90%.
Property Tax Assistance Program (PTAP). PTAP helps citizens on a fixed or limited income by reducing the property tax rate on their home. For Tax Year 2027 you must own or be buying the home, live in it as your primary residence for at least seven months of the year, and have a 2025 federal adjusted gross income (excluding capital and income losses) of $29,943 or less if single, or $40,131 or less if married or head of household. The reduction is 80%, 50%, or 30% of the normal tax rate depending on income and marital status; the Department publishes the income bands for each level in its Tax Year 2027 tables. Apply by April 15 (a missed deadline moves the application to the following year). Your application stays active as long as you own and live in the home.
Montana Disabled Veteran (MDV) Assistance Program. This program is for veterans with a 100% disability from an injury related to service, and for their unmarried surviving spouses, who must own and live in the home as their primary residence for at least seven months of the year. For the same tax year the 2025 federal adjusted gross income limits are $64,551 for single filers, $74,482 for married filers or heads of household, and $56,276 for an unmarried surviving spouse. The reduction is 100%, 80%, 70%, or 50% of the normal tax rate by income band, and you apply by April 15.
These programs are separate from the homestead reduced rate; check the Department’s PTAP and MDV pages for the full eligibility documents and the current-year income bands.
County treasurers typically mail real property tax bills in late October, with the first payment due November 30 and the second due May 31 of the following year. For the 2026 refund the Department treats November 30, 2026 as the first-half due date. Bills show general taxes plus any local special assessments and fees, and the treasurer is the contact for the bill itself.
Informal review. If you disagree with your classification or value, or the property’s characteristics are wrong, you can request an informal review with Form AB-26 (Request for Informal Classification and Appraisal Review). Characteristic errors on the property record are corrected by the Department’s appraisers, not the Montana Tax Appeal Board.
County Tax Appeal Board (CTAB). You can instead appeal directly to the CTAB, an independent board appointed by the county commissioners and not connected to the Department. The appeal goes to your county clerk and recorder within 30 days from the date on your classification and appraisal notice, or within 30 days after you receive a decision from the Department following an informal review. Hearings are generally held between July 1 and December 31.
Montana Tax Appeal Board (MTAB). An appeal of the CTAB decision may be made to MTAB within 30 days of receipt of the CTAB decision. Judicial review of an MTAB decision must be sought within 60 days of the date of the decision.
Payment under protest. The Department says a protest is valid only if you have filed one of the appeals or reviews above, and that state law requires a written protest with the county treasurer and payment of the disputed taxes under protest by the due date. Property taxes must be paid before they become delinquent for you to be eligible for a refund and accrued interest if the value is lowered. The deadlines are tied to the date on your own notice. For the 2025-2026 cycle the Department also accepted late informal-review requests until June 1, 2026 (adjustments for Tax Year 2026 only), so those windows have closed; check the date on any new notice you receive.