2026 Homestead Reduced Tax Rate FAQs

The Montana Department of Revenue offers a reduced property tax rate for qualifying principal residences beginning in 2026. Homeowners who live in their residence at least seven months of the year and meet eligibility requirements may qualify. Below are answers to the most common questions about applying, eligibility, and program details.

For a summary of 2026 property tax rates and qualifying property types, visit our 2026 Property Tax Information for Homesteads and Long-term Rentals page.

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Looking for information about reduced tax rates on long-term rentals?

Visit the 2026 Long-Term Rental Tax Reduction FAQs page.

Eligibility & Application

  • If you got a 2025 property tax rebate and still own and live in the same home for at least 7 months of the year, you’ll automatically qualify for the reduced 2026 tax rate.
  • If you did not get a rebate in 2025 or are buying/building a new home, you must apply.
  • Apply online at MTHomestead.mt.gov or by mail using the 2026 Montana Application for a Reduced Property Tax Rate on a Principal Residence (Homestead).
  • Applications open Dec. 1, 2025 and are due by March 1, 2026.

No. You must complete and submit the 2026 Montana Application for a Reduced Property Tax Rate on a Principal Residence (Homestead) online at MTHomestead.mt.gov or by mail.

The application will be available Dec. 1, 2025, and must be submitted by March 1, 2026, to be considered for Tax Year 2026.

You must submit a completed 2026 Montana Application for a Reduced Property Tax Rate on a Principal Residence (Homestead) to receive the reduced rate. You can apply online at MTHomestead.mt.gov or submit your application by mail.

If you sell your primary residence in Montana and purchase a new primary residence in Montana, The reduced rate can apply to your new home, but you must submit a new application.

It depends:

  • If the home already has the reduced rate, you’ll get that rate for the rest of the year. To keep it the next year, you must apply.
  • If the home was not approved for the reduced tax rate for homesteads, your tax rate will be 1.9% for that tax year, and you can apply for the reduced tax rate for homesteads the following year.

You must live in the home at least seven months of the year to qualify. Homes lived in only six months are taxed as second homes at 1.90%.

Property Ownership Rules

Those types of ownership do not qualify. You would need to change the type of ownership, as only property owned by an individual or a revocable trust is eligible to qualify as a primary residence.

The property qualifies for the homestead reduced tax rate as long as one of the owners lives in the residence for at least seven months each year.

  • Yes, if the owners live on-site full-time for at least 7 months.
  • No, if it’s owned by an entity (LLC, corporation, etc.) or if the owners live elsewhere and hire someone to manage it.

You qualify if you live in the home as your primary residence for at least 7 months of the calendar year.

You can still get the reduced rate on your own primary residence, even if you’re listed as an owner on another property approved for the reduced tax rate.

Taxes & Payments

No. You must pay delinquent and current property taxes to be eligible for the reduced property tax rate on a principal residence (Homestead).

The department will apply a tax rate of 1.90% to residential properties without a homestead reduced tax rate.

You must be current when you apply (by March 1, 2026).

“Current” means:

  • All past property taxes are paid.
  • For 2025 taxes, you must have paid in full or made the first-half payment.

To be safe, apply for the homestead reduced tax rate and verify that your property taxes are paid in full; otherwise, your application will be denied.

Other Programs & Clarifications

No. They are two separate things:

  • Homestead Declaration (filed with your county): Protects up to $409,450 of your home’s value from unsecured debts if you face financial problems.
  • Homestead Reduced Tax Rate (offered by the Department of Revenue): Lowers your property tax rate if you own and live in your home for at least 7 months of the year.