Tax Relief for Homesteads and Long-term Rentals

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Below is a summary of changes to Montana's Property laws for "homesteads" and long-term rentals. To qualify you must be enrolled.  

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Check the status of your application or verify whether your property is enrolled to receive the reduced tax rate on a homestead or long-term rental property.

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The application period for the homestead and long-term rental reduced tax rate opens December 1, 2025. New applicants must submit an enrollment starting on that date.

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What Qualifies as a Homestead or Long-term Rental?

Qualifying Criteria:

  • You live in the property for at least 7 months of the year.
  • You are current on payment of the property taxes.

Eligible Ownership: 

  • The property must be owned by an individual, a couple, or a grantor revocable trust.

Ineligible Ownership:

  • Properties owned by a corporate entity—except for grantor revocable trusts—are ineligible for the homestead reduced rate.  This includes properties owned by a limited liability company, partnership, corporation, or irrevocable trust.

Qualifying Criteria:

  • 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 tenant's residence.
  • You are current on payment of the property taxes.

Eligible Ownership:

  • Property owned by an LLC, corporation, or irrevocable trust does qualify for the long-term rental reduced tax rate.
  • Property owned by an individual, couple, or grantor revocable trust also qualifies.

Eligible property types include: 

  • 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.

While the portion of value associated with your principal residence may be automatically enrolled to receive the homestead reduced tax rate because you received a 2025 tax rebate, you will still need to individually enroll any other dwellings on the property as long-term rentals in order to receive the reduced rates on that portion of the property's value as well.

Tax Rates for Homesteads and Long-term Rentals

In 2026, tiered tax rates will apply to 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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