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Montana · Property taxMontana homestead reduced tax rate: apply between December 1 and March 1, because the seller's rate ends at the sale

Beginning in tax year 2026, Montana taxes a qualifying principal residence at the homestead reduced tax rate – 0.76% of market value up to the median residential value, 0.9% up to twice the median, 1.1% up to four times the median and 1.9% above that – instead of the standard 1.9% (MCA 15-6-134(3)(b)(i), 15-6-405(1)). A principal residence is a single-family home, unit, manufactured or mobile home and its parcel that the owner owned and lived in for at least seven months of the year, the only home for which the owner claims the rate, with the property taxes paid (MCA 15-6-402(4)). The owner applies through the Department of Revenue's website or by mail between December 1 and March 1 for that tax year; later applications apply to the following year (MCA 15-6-405(2)(b)). Once approved, the rate lasts until the end of the tax year in which ownership changes, the home stops being the owner's principal residence, or the owner claims a different home (MCA 15-6-405(2)(c)). Property owned by an entity does not qualify, except a revocable grantor trust (MCA 15-6-405(3)). An eligible owner who did not apply may seek a refund for one year by filing an informal appeal by May 31 of the following year (MCA 15-6-407).

What the statutes set

  1. Rate (15-6-134(3)(b)(i))

    0.76% up to the median residential value, tiers up to 1.9%.

  2. Principal residence (15-6-402(4))

    Owned and lived in at least 7 months of the year; one home only.

  3. Application (15-6-405(2)(b))

    December 1 to March 1, online or by mail postmarked by March 1.

  4. Ends (15-6-405(2)(c))

    At the end of the tax year in which ownership changes.

What the TC tells a Montana buyer after closing

  • The seller's homestead rate ends with the change of ownership – the buyer applies in their own name.
  • Calendar the December 1 to March 1 application window.
  • Confirm the home will be the buyer's principal residence for at least seven months of the year.

Questions about the Montana homestead reduced tax rate

When does a Montana buyer apply for the homestead reduced tax rate?

Between December 1 of the preceding year and March 1, online or by mail postmarked by March 1; later applications apply to the following tax year (MCA 15-6-405(2)(b)).

Does the seller's Montana homestead rate carry over to the buyer?

No. The rate ends at the end of the tax year in which ownership changes, so the buyer must apply (MCA 15-6-405(2)(c)).

Related guides

Add the homestead application window as a post-closing task for the buyer in ClosingCode.

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Sources: MCA 15-6-134, 15-6-402, 15-6-405, 15-6-407 (mca.legmt.gov), read November 1, 2026.

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.