2026 Tax Information for Montana Property Owners

In 2026, Montana will implement a new property tax structure that continues to promote long-term housing while distinguishing primary residences and rentals from second homes and short-term vacation properties. This page outlines the key tax rate changes for different property types and classifications.

Reduced Tax Rates for Primary Residences and Long-term Rentals

The Montana Department of Revenue will implement a new tax rate structure in 2026 that reduces tax rates for primary residences and long-term rentals.

  • If you received the 2025 property tax rebate and still own and live in the home for 7+ months of 2026, you automatically qualify.
  • Long-term rentals (rented for 28+ days for at least 7 months/year) also qualify. Application window: Dec. 1, 2025 – Mar. 1, 2026

Eligible property types:

  • Single-family homes, townhomes, condominiums
  • Single-family homes on non-qualified or qualified agricultural land or forest land
  • Manufactured/mobile homes (including up to 1 acre of land)
  • OBYs with living space and a 1-acre homesite

Tax Rates

The reduced tax rate follows a tiered (incremental) structure. Each portion of your property’s market value is taxed at the rate listed for that bracket — not the total value.

For Tax Year 2026:

  • 0.76% on the first $378,000 of market value
  • 0.90% on the portion between $378,001 and $756,000
  • 1.10% on the portion between $756,001 and $1,511,999
  • 1.90% on any portion over $1,512,000 or greater

Other Residential Property Types

The flat 1.90% tax rate applies to:

  • Second homes
  • Short-term rentals (e.g., VRBOs, Airbnbs, cabins)
  • Vacant residential lots

Multifamily dwellings used as long-term rentals:

  • Flat tax rate: 1.10%

  • Manufactured/mobile homes used as a primary residence or long-term rental qualify for the tiered tax rate
  • If the land and home are under the same ownership, up to 1 acre of land qualifies as well

Tax Rates for Non-Residential and Agricultural Properties

The Department will calculate tax using a two-tiered structure based on an estimated statewide median value of $379,000:
Tax Rate Assessed Value
1.50% <$2,274,000 (under 6x median)
1.90% ≥$2,274,000 (6x median or greater)

  • Land: 14.35% flat rate
  • If the parcel has a primary residence or long-term rental: home + 1-acre homesite taxed at tiered residential rate
  • If it's a second home or short-term rental: home + 1-acre homesite taxed at 1.90% flat rate

  • Automatically qualified if 160+ acres; smaller parcels require proof of agricultural use and income
  • Land: 2.05% flat rate
  • Residence rules:
    • Primary residence or long-term rental: taxed at tiered rate
    • Second home or short-term rental: taxed at 1.35% flat rate

  • Land: 0.37% flat rate
  • If a dwelling exists:
    • Primary residence or long-term rental: taxed at tiered rate
    • Second home or short-term rental: taxed at 1.90% flat rate