Montana’s property tax laws just got a makeover — and if you own a home or rental, you might be sitting on some money-saving magic. Whether you’re living in your home full-time or renting out a long-term haven for tenants, the state has rolled out new reduced tax rates (starting in 2026!) to help ease the load.
But… you have to be enrolled to get the savings.
So let’s break down exactly who qualifies — in a simple, friendly way — so you can find out if these new perks have your name on them.
What Counts as a Homestead? (Your Primary Residence)
If you call your Montana home home (like, actually live there most of the year), you might qualify!
You’re In If…
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You live in the property at least 7 months out of the year
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You’re current on your property taxes
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Your property is owned by:
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An individual
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A couple
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A grantor revocable trust
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You’re Out If…
Homesteads do NOT qualify if they’re owned by:
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LLCs
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Partnerships
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Corporations
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Irrevocable trusts
(Even if you’re the one living in it!)
What About Long-Term Rentals?
If you’re renting to tenants who actually live there — not vacationers — you may score the reduced long-term rental tax rate.
You’re In If…
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The property is rented for 28+ days per stay
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It’s rented for 7+ months of the year
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It’s the tenant’s residence
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Property taxes? Paid and current
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Ownership can be:
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Individual
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Couple
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Grantor revocable trust
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LLC, corporation, or irrevocable trust
(Yep! Long-term rentals have more flexible ownership rules than homesteads.)
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Property Types That Qualify
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Single-family homes
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Townhomes + condos
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Manufactured/mobile homes (with up to 1 acre)
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OBYs with living space + 1-acre homesite
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Homes on agricultural or forest land
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Duplexes, triplexes, fourplexes, and more
Special Note for Homeowners with Rentals on the Same Property
Got a primary residence and a rental unit on the same parcel?
Here’s the deal:
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Your home portion might already be auto-enrolled for the homestead rate (thanks to the 2025 tax rebate).
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BUT — any additional dwellings (like basement apartments or guest houses) must be individually enrolled as long-term rentals to get the reduced rate on those portions.
Don’t skip this step — it’s easy to miss!
2026 Tiered Tax RatesBeginning in 2026, both homesteads and long-term rentals move into a tiered rate system — meaning different portions of home value get taxed at different rates. More value ≠ one giant tax percentage anymore.
(Check the official MT Department of Revenue site for rate charts.)
Tax Relief for Agricultural & Forest LandsHere’s where things get interesting — and where a lot of landowners can save big.
Agricultural Land
Non-Qualified Ag Land
- Land is taxed at: 14.35% flat rate
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If the property has:
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A primary residence or long-term rental → that home + 1 acre taxed at tiered residential rate
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A second home or short-term rental → that home + 1 acre taxed at 1.90% flat rate
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Qualified Ag Land
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Automatically qualified at 160+ acres
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Under 160 acres? You need proof of ag use + income
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Land is taxed at: 2.05% flat rate
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Residence rules:
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Primary residence/long-term rental: tiered rate
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Second home/short-term rental: 1.35% flat rate
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Forest Land
- Land is taxed at: 0.37% flat rate
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If there’s a dwelling:
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Primary residence/long-term rental → tiered rate
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Second home/short-term rental → 1.90% rate
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Ready to See If You Qualify? Montana’s updated property tax rules are designed to support full-time residents, responsible landlords, and long-term community housing — and now is the perfect time to get ahead of the 2026 changes.
You can explore the full details here.
If you’d like help understanding how this affects YOUR property, I’m happy to walk you through it — just reach out!
