2026 Property Tax Information for Homesteads and Long-term Rentals

This page provides a focused summary of Montana's property tax policies specifically for owner-occupied primary residences (homesteads) and long-term rentals. These types of properties receive favorable tax treatment under legislation taking effect in 2026.

Applications for Reduced Tax Rates

The application period for the homestead and long-term rental reduced tax rate opens December 1, 2025. Applications will be made available beginning December 1.

If you claimed and received a property tax rebate in 2025 and you still own the property and reside in it as your principal residence, you are automatically enrolled to receive the homestead reduced tax rate for 2026.

Verify Your Enrollment

You can verify whether your property is enrolled to receive the homestead reduced rate by clicking the link below:

Homestead Enrollment Verification

What Qualifies as a Homestead or Long-term Rental?

  • You live in the property for at least 7 months of the year
  • The property is your principal residence
  • You are current on payment of the property taxes

  • To qualify, either an individual or a grantor revocable trust must own the property. 

  • Properties owned by an entity—except for grantor revocable trusts—are ineligible for the homestead reduced rate.  This means that a property owned by a limited liability company, partnership, corporation, or irrevocable trust do not qualify.

  • The property is rented to tenants for 28+ days at a time
  • The property is rented for 7+ months of the year
  • The property rented is the tenants residence
  • You are current on payment of the property taxes
  • You must apply between Dec. 1, 2025 and Mar. 1, 2026 for the 2026 rate

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

  • Multi-family properties such as duplexes, triplexes and fourplexes etc.

Tax Rates for Homesteads and Long-term Rentals

A tiered system applies homesteads and long-term rentals:

In 2026, the Department will implement a tiered system based on the estimated statewide median home value ($378,000 for the 2025–2026 appraisal cycle):

Tax Rate Assessed Value
0.76% <$378,000 (up to median)
0.90% $378,001 to $756,000 (median to 2x median)
1.10% $756,001 to $1,511,999 (2x to 4x median)
1.90% ≥$1,512,000 (4x median or greater)
2025-2026 statewide median home value is tentatively $378,000

Tax Rates for Agricultural and Forest Land Properties

  • 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

Homestead Resources

Frequently Asked Questions

Not sure where to start? Our FAQs cover the most common questions about homesteads and long-term rental properties.

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