Big Property Tax Changes Coming to Montana in 2026

Important property tax changes on the horizon for Montana residents.

If you’re thinking about buying a second home, vacation property, or short-term rental in Montana, there are some important property tax changes on the horizon.

Here’s what you need to know:

Lower Taxes for Primary Homes & Long-Term Rentals Starting in 2026, owner-occupied homes and long-term rentals (lived in at least 7 months a year) will be taxed at tiered rates from 0.76% to 1.9%, depending on value. This could mean up to 18% savings on your annual property tax bill.

Higher Taxes for Second Homes & Short-Term Rentals Non-owner-occupied homes will be taxed at a flat 1.9% rate beginning in 2026—an increase that could raise some tax bills by up to 68% compared to prior years.

Important Deadlines

• To get the lower “homestead” rate, owners must apply by March 1, 2026.

• A $400 rebate for 2024 is available, with applications accepted Aug 15–Oct 1, 2025.
  

Agricultural Property Exemption: Homes on qualifying agricultural land are exempt from the second-home tax, even if they’re not your primary residence.

Bottom line: If you're buying a Montana home for seasonal use or as a rental, be sure to factor in these tax changes. Want to chat more? Please reach out!